331: Credit for Donation of School Site (2024)
Arizona · Arizona DOR · Used for tax years 2024
Arizona Form 331 calculates the Credit for Donation of School Site and reports donated property details, credits passed through from partnerships or S corporations, and available credit carryovers. The donated real property and improvements must be in Arizona, and the credit repl
Who files this form
Include Form 331 with your return when claiming the Credit for Donation of School Site. The donated real property and improvements must be located in Arizona.
The form provides for individuals, C corporations, S corporations claiming the credit at the corporate level, and exempt organizations with unrelated business taxable income (UBTI).
A partnership claiming this credit must pass it through to its partners. An S corporation must elect either to claim the credit or to pass it through to its shareholders.
What you'll need
Have the following information ready:
- Your name as shown on your tax return and your Social Security number or Employer Identification Number.
- For each donated property: Arizona county, parcel number, conveyance date, recording number, and property value based on an appraisal.
- Forms 331-P or 331-S showing any credit passed through to you.
- For carryovers: the taxable year, original credit amount, and amount previously used or expired.
Use continuation sheets if applicable. Partnerships must include a completed Form 331-P for each partner with their return. S corporations passing through the credit must include a completed Form 331-S for each shareholder.
How to file
Include Form 331 with your tax return. The form does not give a mailing address or electronic filing instructions.
Partnerships must complete Form 331-P for each partner, provide each partner a copy, include each completed form with the tax return, and keep copies for their records. They must not complete the remainder of Form 331 after Part 2.
S corporations passing through the credit must complete Form 331-S for each shareholder, provide each shareholder a copy, include each completed form with the tax return, and keep copies for their records.
Report the current-year credit, available carryover, and total available credit from Part 5 on the appropriate credit summary form:
- Individuals without the Small Business Income election: Form 301, Part 1, line 10.
- Individuals with that election: Form 301-SBI, Part 1, line 6.
- C corporations, S corporations claiming the credit at the corporate level, and exempt organizations with UBTI: Form 300, Part 1, line 5.
Use columns (a), (b), and (c), respectively.
Common mistakes
- Claiming both the credit and a deduction for the same donation. The credit is in place of a deduction for the property donation for which the credit is claimed.
- Overlooking the location requirement. The donated real property and improvements must be in Arizona.
- Forgetting to include Form 331 with the return.
- Completing the rest of Form 331 after Part 2 for a partnership. The form says partnerships must stop there.
- Checking both S corporation election boxes. Check only one. The election is irrevocable for the taxable year.
Questions people ask
How is the credit for donated property calculated?
Multiply each property's value based on appraisal by 30%. Add those amounts, any continuation-sheet total, and credits passed through on Forms 331-P and 331-S to calculate the current taxable year's credit.
Can a partnership keep the credit?
No. A partnership claiming the credit must pass it through to its partners and complete Form 331-P for each partner.
Can an S corporation pass the credit to shareholders?
Yes. It must elect either to claim the credit or to pass it through to shareholders. The election is irrevocable for the taxable year.
How do I calculate available carryover?
In Part 4, subtract the amount previously used or expired from the original credit amount for each listed taxable year. Add the available amounts on lines 13 through 17 to get the total available carryover.