Arizona State Return

[klw200]

TurboTax used all my Federal capital gains in the 140NR (Non-resident) for Arizona (lines 33-37) when the instructions for the form indicates they should only be "Arizona Sourced" capital gains.  TurboTax did not ask any questions about "Arizona Sourced" capital gains when asking for information to fill out the Arizona return.  Is that a problem with TurboTax for Arizona?  What do have to do to get the proper data in the Arizona return?

[AmyC]

When you enter the AZ return, it goes through several questions before landing on AZ income. It lists interest, dividends, gains, rents, etc and asks for the AZ amount. Please return to your AZ return and fill in the information as requested.

[klw200]

Amy C,

I when back to the screen you provided me and verified there is "0" in the capital gains column for Arizona, but the number from the federal return minus the SBI capital gain continues to show up in the Arizona 140NR on line 37.   Later under "Capital Gain from Assets Acquired After 2011" TurboTax is telling me I have a net long-term capital gain that is the number on my federal return minus the SBI capital gain.  It then asks me "Portion from Assets Acquired AFTER DECEMBER 31, 2011"  to which I put the total number on my federal return because all of them were acquired after that date.  IT DOES NOT ASK ANYTHING ABOUT ARIZONA PORTION. What I a seeing in the final AZ return is whatever number I put under "Portion from Assets Acquired AFTER DECEMBER 31, 2011" is the number that shows up in line 37 of the AZ return.  It doesn't matter that that there is a "0" in the line you told me to input the AZ portion of capital gains.  Am I doing something wrong?

[klw200]

Amy C,

I when back to the screen you provided me and verified there is "0" in the capital gains column for Arizona, but the number from the federal return minus the SBI capital gain continues to show up in the Arizona 140NR on line 37.   Later under "Capital Gain from Assets Acquired After 2011" TurboTax is telling me I have a net long-term capital gain that is the number on my federal return minus the SBI capital gain.  It then asks me "Portion from Assets Acquired AFTER DECEMBER 31, 2011"  to which I put the total number because all of them were acquired after that date.  IT DOES NOT ASK ANYTHING ABOUT ARIZONA PORTION. What I am seeing in the final AZ return is whatever number I put under "Portion from Assets Acquired AFTER DECEMBER 31, 2011" is the number that shows up in line 37 of the AZ return.  It doesn't matter that that there is a "0" in the line you told me to input the AZ portion of capital gains. That doesn't seem right. Am I doing something wrong?

[DMarkM1]

When you are asked to put in portion of assets acquired after Dec 2011 only put in the AZ portion of assets acquired after Dec 2011.  If none then enter zero.  

[klw200]

Putting a 0 in the location Amy C showed me should have taken care of the issue and put 0 on line 37.  Why didn't it?  Shouldn't it?

If there are non-zero Arizona capital gains, shouldn't the TurboTax software text be changed to ask which of the "Arizona Assets" were purchased after December 31, 2011?

The top one seems like a software error and the 2nd a useful software text clarification.  Is there an issue reporting mechanism at TurboTax so that these could be reviewed by software developers, issues duplicated, and possibly have corrections made?  How do I do that?  Thank you.

[PCMarmot]

I am just replying to this thread to note that I have encountered the same issue on my 2024 tax return. 

I am reporting non-resident rental income for Arizona and TurboTax is pulling capital gains related to the sale of investments that are completely unrelated to the rental income. 

TurboTax's level of support for state returns is ridiculous and this issue should be fixed.