331-P: Credit for Donation of School Site – Distribution to Partners (2024)
Arizona · Arizona DOR · Used for tax years 2024
Arizona Form 331-P reports a partner’s share of a partnership’s Credit for Donation of School Site. It lists the partnership’s credit amount, the partner’s ownership percentage and portion of the credit, and the partner’s share of donation expenses.
Who files this form
Partnerships distributing the credit for donation of a school site must complete a separate Form 331-P for each partner, except trust or estate partners.
If a partnership share is owned by a grantor trust that is disregarded for federal income tax purposes, that share is treated as owned by the grantor. The grantor may claim their share of the credit.
Partners use the completed Form 331-P to complete their own Form 331 and include Form 331-P with their tax return.
What you'll need
To complete Form 331-P, have these details available:
- The partnership’s name and Employer Identification Number (EIN).
- The partner’s name and Taxpayer Identification Number (TIN).
- The partnership’s Form 331, Part 1, line 11 credit amount.
- The partner’s ownership percentage.
- The partner’s portion of the expenses for donating the property as a school site.
Partners need the completed Form 331-P to prepare their own Form 331.
How to file
Partnerships
- Complete a Form 331-P for each eligible partner.
- Enter the partnership’s credit from Form 331, Part 1, line 11 on line 3a.
- Enter the partner’s ownership percentage on line 3b. Multiply line 3a by that percentage and enter the partner’s credit share on line 3c.
- Enter the partner’s portion of the donation expenses on line 4.
- Give each partner a copy, keep a copy for your records, and include a copy of each completed Form 331-P with the partnership return.
Partners
Enter the amount from Form 331-P, line 3c on your own Form 331, Part 1, line 9. Include the completed Form 331-P with your return and keep a copy for your records.
The form does not provide a mailing address or e-filing instructions.
Common mistakes
- Claiming the credit in the wrong year: If you file on a calendar-year basis and the partnership files on a fiscal-year basis, claim the credit for the year in which the partnership’s fiscal year ends.
- Missing the corporate addback: Corporate partners must add back the amount on line 4 when calculating Arizona taxable income.
- Claiming both the credit and an itemized deduction: Individual partners cannot claim both for the school site donation. If you claim the credit and itemized deductions on federal Schedule A, add back the lesser of the amount on line 4 or the amount deducted on Arizona Schedule A.
- Forgetting copies: Partnerships must give partners copies and include copies with the partnership return. Partners must include their completed form with their return. Both must keep copies for their records.
Questions people ask
How is my share of the credit calculated?
The partnership multiplies its credit amount on line 3a by your ownership percentage on line 3b. Your share appears on line 3c.
Where do I enter my share of the credit?
Enter the amount from Form 331-P, line 3c on your own Form 331, Part 1, line 9.
Can a grantor claim a share owned through a grantor trust?
Yes. If the grantor trust is disregarded for federal income tax purposes, the partnership share is treated as owned by the grantor, who may claim their share of the credit.
What if the partnership’s fiscal year differs from my calendar tax year?
Claim the credit on your tax return for the year in which the partnership’s fiscal year ends.