AZ resident has rental property in TX

[Wernershocky]

Hi 

I live in AZ, have a rental property in TX.

When I file the federal tax, my rental income is 25000 but my schedule E is -8000, because of the expense and depreciation. So my question is when I file the AZ tax , should I enter 0 for my rental income or 25000? I don’t see AZ has the option for me to enter expenses and depreciation, or I miss something here? 

[MaryK4]

Arizona conforms with the federal tax return- so the income is treated the same as the federal.  You do not have to report the information to Arizona, the state looks at your Schedule E from the 1040.  

[thasildar99]

Arizona adjustes the federal income to add the depreciation back which increases the taxable income for Arizona.  I have rental properties in Wisconsin and my depreciation was 18,000. Arizona is adding this back to federal AGI which increases my Arizona base. Is that normal?  Is there a way to not include the other state depreciation into Arizona income?