If you collected rents totaling more than the filing threshold of $15,000, then YES, you must fill out AZ Form 140NR. I am in a similar situation and this is the response I got from the Arizona Dept of Revenue:
Arizona nonresidents earning income from Arizona sources and who meet the filing threshold are required to file a nonresident tax return (AZ Form 140NR). Rental income from a property located in Arizona is considered income from Arizona sources. If you are required to file a nonresident return, report the rental income on Form 140NR, line 21.
Note: Arizona does not allow individuals a adjustment to reduce current year income with net a operating loss carry forward utilized on the federal return.
To determine if you meet the filing threshold for a nonresident see Form 140NR instructions, page 1) for the table listing the filing thresholds for each type of filing status.
It is based on gross income, not net, from your rental property. Hope this helps!
