In this chapter, unless the context otherwise requires:

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

1. "Arizona small business" means an activity that generates Arizona small business gross income.

2. "Arizona small business adjusted gross income" of a resident taxpayer means the Arizona small business gross income subject to the adjustments provided in article 3 of this chapter.

3. "Arizona small business gross income" of a resident taxpayer:

(a) Means the sum of the amounts, whether positive or negative, that are included in a taxpayer’s federal adjusted gross income for the taxable year, computed pursuant to the internal revenue code, and that are reported on the following schedules and forms or on equivalent successor schedules and forms designated by the internal revenue service:

(i) Schedule B, interest and ordinary dividends.

(ii) Schedule C, profit or loss from business.

(iii) Schedule E, supplemental income or loss.

(iv) Schedule F, profit or loss from farming.

(v) Form 4797, sale of business property.

(vi) Form 4835, farm rental income and expenses.

(b) Includes any amount reported on schedule D, capital gains and losses, that is recognized with respect to either the taxable disposition of an ownership interest in any entity other than a publicly traded entity, or the taxable disposition of capital assets used in connection with a trade or business activity, including goodwill and going concern value.

4. "Arizona small business taxable income" of a resident taxpayer means the Arizona small business adjusted gross income minus any deductions allowable in article 4 of this chapter.