Follow up to my question I posted a few minutes ago:
Electing to file the Arizona SBI Tax Return is optional.
If you elect to file an Arizona SBI Tax Return, you have to file two tax returns; regular tax return and the Arizona SBI Tax Return.
We noticed significant increase in tax refunded from the state of Arizona if electing this option.
But what are the trade-offs? What are the disadvantages if making this election?
Can't believe the state would just recognize and provide small business taxpayers (Schedule C, primarily with SE Tax) a significant tax benefit by choosing to file the Arizona SBI Tax Return.
Advantages (other than decreased tax liability)?
Disadvantages?
What's the hitch?
Help.
Thanks in advance.
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I'm not sure the following will help (or if you have seen it already) but there probably are few, if any, on this board who are familiar with the SBI return.
https://azdor.gov/sites/default/files/2023-03/SmallBusinessIncomeFAQs.pdf
Instructions from the state are not clear.
With only a few days before the filing deadline, being able to obtain a timely professional opinion is not likely.
The link mentions "extension" requirements, but does not indicate if filing form 204 was sufficient. In other words, is a separate Form 204 required for the SBI tax return? Or was the Form 204 that was filed in April 2024 satisfy the requirement for both a regular Arizona 140 and the Arizona SBI returns.
Confusing.
Noticed a significant difference if electing to file Arizona SBI tax return; i.e., instead of owing the return identified a significant state refund.
What to do.......
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