INSTRUCTIONS: ARIZONA NONRESIDENT SHAREHOLDER'S SHARE OF INCOME AND DEDUCTIONS (Form 120S Schedule K-1(NR))

In Arizona, Schedule K-1(NR) is filed along with form 120S to document a nonresident shareholder's share of income and deductions. This document can be obtained from the website of the Arizona Department of Revenue.

Arizona Nonresident Shareholder's Share Of Income And Deductions 120S Schedule K-1(NR) Step 1: Indicate whether you are filing an original or amended return with a check mark.

Arizona Nonresident Shareholder's Share Of Income And Deductions 120S Schedule K-1(NR) Step 2: Indicate whether you are filing for the calendar year printed on the form or for your fiscal year with a check mark. If the latter, enter the beginning and ending dates of your fiscal year.

Arizona Nonresident Shareholder's Share Of Income And Deductions 120S Schedule K-1(NR) Step 3: In the first blank box, enter the shareholder's identifying number.

Arizona Nonresident Shareholder's Share Of Income And Deductions 120S Schedule K-1(NR) Step 4: In the second blank box, enter the S corporation's employer identification number.

Arizona Nonresident Shareholder's Share Of Income And Deductions 120S Schedule K-1(NR) Step 5: In the third blank box, enter the shareholder's name, address and zip code.

Arizona Nonresident Shareholder's Share Of Income And Deductions 120S Schedule K-1(NR) Step 6: In the fourth blank box, enter the S corporation's name, address and zip code.

Arizona Nonresident Shareholder's Share Of Income And Deductions 120S Schedule K-1(NR) Step 7: Enter the shareholder's percentage of stock ownership for the taxable year.

Arizona Nonresident Shareholder's Share Of Income And Deductions 120S Schedule K-1(NR) Step 8: The remainder of the form consists of a table for documentation of pro rata share items from federal form 1120-S, Schedule K-1. In column a, enter figures for the distributive share amount. In column b, enter figures for the Arizona apportionment ratio. In column c, enter figures for Arizona source income. Document ordinary income or loss from trade or business activities on line 1.

Arizona Nonresident Shareholder's Share Of Income And Deductions 120S Schedule K-1(NR) Step 9: Document net income or loss from rental real estate activities on line 2 and net income or loss from other rental activities on line 3.

Arizona Nonresident Shareholder's Share Of Income And Deductions 120S Schedule K-1(NR) Step 10: Complete lines 4 through 15 as directed.