What does Capital Gain or Loss from Assets Acquired After December 31, 2011 Enter the portion of gain or loss from assets acquired after December 31, 2011 mean?

[RobertB4444]

@mithdeduct317  Enter the amount from box 2a.

[AZ-Taxes]

Same or similar questions in 2023 for tax year 2022.  When I get to the Arizona tax section titled "Capital Gain or Loss from Assets Acquired After December 31, 2011", I see "Capital Gain or Loss from Assets Acquired After December 31, 2011" followed by the box prefilled with my LTCG or LTCL. My questions are:

1. In addition to LTCG or LTCL, are STCL (net short-term capital losses) supposed to be added to this box? Or, only LTCL?

2. My scenario is this: LTCL: < $500

STCL: Near $20,000

Thank you in advance for your response.

[DianeW777]

No. Capital gain is by definition long term, and short term by definition is ordinary gain. 

For Arizona state tax purposes, you're allowed to subtract 25% of any net long-term capital gain that's been included in your federal adjusted gross income when it was derived from an investment in an asset acquired after December 31, 2011.

• AZ Form 140 Instructions (see page 12, Lines 20 through 24 - Net Capital Gain or (Loss)

@AZ-Taxes 

[AZ-Taxes]

DianeW777, thank you.

[DH_taxtime]

Working on my AZ tax return and also a bit confused by this.  Hoping someone can help.

Example scenario:  
You have a total net long term capital gain of $1500    What is the portion for assets acquired after Dec 31, 2011?
 

Based on the math, it appears that capital gain distributions are also factored into this figure (for which acquisition dates are not available, so should not be included in the input figure based on research I've done).

And the NET gain/loss from the sale of assets is a NET of several different transactions, all with assets with different acquisition dates.  

So my net long-term capital gain of $1500 could be made up of:
$1700 capital gains distribution (no acquisition dates available)

$800 LT gain (assets before Dec 31, 2011)
-$1000 LT loss (assets after Dec 31, 2011)

What would I enter?

[ThomasM125]

$800 of the gain is definitely associated with investments that were acquired before December 21, 2011, so that is your best answer.