141AZ Schedule K-1: 141AZSCHK1 Resident or Part-Year Resident Beneficiary's Share of Fiduciary Adjustment (2025)
Arizona · Arizona DOR · Used for tax years 2025
Arizona Form 141AZ Schedule K-1 reports a resident or part-year resident beneficiary’s share of an estate or trust’s fiduciary adjustment. It also provides capital gain and loss information and reports distributed amounts for certain virtual currency and non-fungible token subtra
Who files this form
The 2025 Arizona Form 141AZ Schedule K-1 is for reporting a resident or part-year resident beneficiary’s share of an estate or trust’s fiduciary adjustment.
The form gives instructions for fiduciaries to report amounts and for beneficiaries to use those amounts on their Arizona returns. It includes instructions for full-year resident individuals, part-year resident individuals, and fiduciary beneficiaries.
What you'll need
Have the following information available to complete the applicable parts of the schedule:
- Identification and contact information: The estate or trust’s name and EIN; the beneficiary’s name, EIN or SSN, and address; and the fiduciary’s name, address, and phone number. The form also asks for a contact’s daytime phone number.
- Form 141AZ, Schedule C: The net fiduciary adjustment from line C14 and the beneficiary’s percentage share of federal distributable income.
- Capital gain and loss information, if applicable: The beneficiary’s federal Form 1041 Schedule K-1, distributed capital gains from Form 141AZ, and capital loss carryovers distributed when the estate or trust terminates. Part 2 separates long-term amounts by whether assets were acquired before January 1, 2012, or after December 31, 2011.
- Other distributed amounts, if applicable: Virtual currency and non-fungible token airdrop values, allowed gas fee or non-fungible token basis subtractions, and pass-through entity tax credit and tax payment information.
Individual beneficiaries must use the net long-term capital gain subtraction worksheet in the Form 140 or Form 140PY instructions to determine the allowable subtraction.
Questions people ask
How is my share of the fiduciary adjustment calculated?
Line 1 uses the net fiduciary adjustment from Form 141AZ, Schedule C, line C14. Line 2 uses your percentage share of federal distributable income from Schedule C. Multiply line 1 by line 2 and enter the result on line 3.
Where does a full-year resident report the line 3 adjustment?
If you did not elect to file a Small Business Income tax return, report a positive amount on Form 140, line 18, and a negative amount on Form 140, line 36. If you elected to file a Small Business Income tax return, use Form 140-SBI, line 11 for a positive amount or line 34 for a negative amount.
What is different for a part-year resident?
If you did not elect to file a Small Business Income tax return, report only the portion of line 3 allocable to estate or trust income taxable by Arizona. Use Form 140PY, line 31 for a positive amount or line 44 for a negative amount. If you elected to file a Small Business Income tax return, the form directs you to Form 140PY-SBI, line 11 for a positive amount or line 34 for a negative amount.
Where do I report the distributed Entity-Level Income Tax Credit?
Enter your distributed share shown on Schedule K-1, line 12, on Form 355, line 3.