The "sale" of property that realized a gain aka capital gains is what causes the tax event not the purchase date. Although, you then want to look at the date of purchase to see if it is eligable for special tax treatment in AZ (purchased after December 31, 2011). I beleive this helped investors buying foreclosuers fip houses and lower their captial gains taxes. You stated this was dividends you realized from an investment where you authorized the investment company to reinvest it in stock and I'm not sure you can exclude that from reporting the dividend as ordinary taxable income even if you decided to invest your gains further in stocks. If this involves a lot of money and you think might be eligable for special tax treatment of capital gains, get CPA tax specialist advice.
