"Capital Gain or Loss from Assets Acquired After Decemer 21, 2011"

[Paulca]

In completing my 2021 AZ State taxes I'm faced with the  "Capital Gain or Loss from Assets Acquired After December 21, 2011" statement. I started a company March 1, 2012 and sold it in October 2021. Do I input the entire amount of capital gains in this block? Am I missing something because it dramatically (as in dramatically) lowers my state taxes payment.

[Taxedout7700]

Can this line item include long term gains from mutual funds acquired and sold after 12/31/2011?  Can Total Capital Gain Distributions be pro-rated between the proportion held before and after 12/31/2011 so that the later amount is included in this line item?

[DiddlyD]

Let me add to the above, be sure to obtain an appriasal of a property you inherited, if there was a probate that should have been done by the executor of the estate (get a copy) or hire a bonified appraiser to do an appraisal (not a RE comp) to document the actual value; yes it will cost a few bucks but it will hold up in an IRS audit if you have to report capital gains because you sold it for more than the value at the time of inheritance.  This in no way pertains to or eliminates the inheritance tax; that is another subject all together. 

[DiddlyD]

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.

[wfuller]

Does this apply to capital gains from sale of rental property?  The property was purchased in 2012 and sold in 2020. 

[I HATE TAXES]

Why is it so difficult for "tax experts" to speak in plain English??

[I HATE TAXES]

and thats exactly what these bs overcomplicated tax rules are designed to do!

[AZtaxquestions]

In 2020 I had a Futures 1256 contract loss of -92000 so with the 60/40 tax rule -55200 was the long-term capital loss and -36800 as a short-term capital gains loss.   In the Federal Section TurboTax has been deducting the 3000 standard deduction amounts for 2020, 2021, and now 2022 from the short-term capital gains loss and carrying the rest forward.

This prompts the AZ state tax return to enter Capital Gain or Loss each year from Assets Acquired After December 31, 2011.  Until the amount is gone should I enter negative -55200 each year unless there are gains to offset it?   The instructions are so poor on TurboTax for this field I am afraid I have been doing it wrong and would like precise detail on what to enter in this field and if TurboTax requires further calculations.  This field gives me great anxiety every year and I wish TurboTax would improve the info with some examples.   I could really use the help of an expert please.   Also, if there is an AZ TurboTax CPA, I can talk to about this specific issue that would be nice as a bonus for peace of mind.  By the number of posts, I think many others would agree this needs more detail and attention in TurboTax.   Thank you very much looking forward to hearing everyone's input on the negative capital gain how-to.

[AZtaxquestions]

I do not have a carryback.   I just want to know is AZ if you have a long-term capital loss carry forward and you know the entire amount occurred after December 31, 2011 does the state of AZ and TurboTax just want you to reenter that same negative number each year assuming you do not have gains to offset it?  So, if the box says you have -53000 in long term gains that occurred in 2012 and beyond do you just copy that same negative number into the TurboTax box each hear verbatim?    This assumes there is no long-term capital gains offsetting it.   In laymen terms is TurboTax and the AZ140 just using this for line 22 that I think this populates correct me if I am wrong with tracking of long-term capital loss carry forwards, in the case you have a loss?

[DiddlyD]

There is no such thing as Dividends on"rental property".  Dividends is associated with investment in stock in a company.  The only thing that is both is called a "REIT" short for "Real Estate Investment Trust" where you don't own any particular property, you have just invested collectively in a Trust that holds property and you receive dividends from the profits.  So don't get the two confused.  BTW, REIT income would not be reported as 1099-DIV.  

That is not anything that falls under this topic!

[DiddlyD]

I wish the edit button worked.  I meant the dividend would be reported as a 1099-Div on 1040.

[DiddlyD]

You have one complicated scenerio, you have both short and long term capital gains on an investment that resulted in losses meaning you don't have any capital gains because you did a short sale (sold for less than you purchased it for) and may even have even filed chapter 11 to avoid owing the balance to the lien holder (mortgage co).  If your itemized deductions exceeds your standard deduction, it will use the itemized deductions not the standard deduction (you only get to take one).  If you have any date of acquisition in your tax Federal tax return, it will trigger the AZ special capital gains tax exemption.  If that is incorrect, you better go into the federal tax form and change the date, or go to a tax professional and have them do your taxes. Sounds like you don't owe any capital gains anyway, but if you don't fix the state tax return which uses the federal return to figure out your state taxes, you might under pay the state and wind up with penalties too.

[DiddlyD]

Call the AZ state Department of Revenue- ADOR (602) 255-3381

[JohnB5677]

@AZtaxquestions Regarding Az carryover of long-term Capital losses.

I just want to know is AZ if you have a long-term capital loss carry forward and you know the entire amount occurred after December 31, 2011 does the state of AZ and TurboTax just want you to reenter that same negative number each year assuming you do not have gains to offset it?  

No, if that individual has a capital loss carryover deduction included in their federal adjusted gross income, that deduction will also be included in Arizona gross income.  So, the loss would be decreased by $3,000.

So, if the box says you have -53000 in long term gains that occurred in 2012 and beyond do you just copy that same negative number into the TurboTax box each hear verbatim? 

No, as stated above it would be depleted by a minimum of $3,000.

This assumes there is no long-term capital gains offsetting it.  

This is correct.

In laymen terms is TurboTax and the AZ140 just using this for line 22 that I think this populates correct me if I am wrong with tracking of long-term capital loss carry forwards, in the case you have a loss?

I'm not sure what you mean by this statement.

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[jptbt8]

Hey, dear @JohnB5677 :

I am having the same question on this and very confused by TT :

I purchased a stock 10 years ago, and sold it in 2023 with $10000 gain.

When I file state tax on Arizona, TurboTax asked as below :

"

Capital Gain or Loss from Assets Acquired After December 31, 2011

You have a total net long-term capital-gain of $10,000.

Note: For forms 1099-DIV or 1099-B, verify that the capital gain or loss is due to an asset acquired after December 31, 2011.

Enter the portion of gain or loss from assets acquired after December 31, 2011: ???

"

Should I enter $10000?

Thanks,

jp