Arizona Revised Statutes Title 43. Taxation of Income § 43-1333. Fiduciary adjustment; allocation of shares

A. The fiduciary adjustment for a resident estate or trust shall be the net amount of the additions and subtractions required by §§ 43-1021 and 43-1022 including the addition required by § 43-1021, paragraph 1 or the subtraction required by § 43-1022, paragraph 3 if the estate or trust is a beneficiary of another estate or trust.

B. In the case of a nonresident estate or trust, the fiduciary adjustment shall be the net amount of the additions and subtractions required by §§ 43-1021 and 43-1022 that are derived from or related to income from sources within this state.

C. The estate or trust and its beneficiaries shall apportion the fiduciary adjustment in the same proportion as their respective shares of federal distributable net income of the estate or trust.

D. If the estate or trust has no federal distributable net income for the taxable year, the share of each beneficiary in the fiduciary adjustment shall be in proportion to the beneficiary's share of the estate or trust income for the year, under local law or terms of the instrument, that is required to be distributed currently and any other amounts of the income distributed in the year. Any balance of the fiduciary adjustment shall be allocated to the estate or trust.

E. In the case of a nonresident beneficiary of an estate or trust, including a nonresident estate or trust that is a beneficiary of another estate or trust, the addition required by § 43-1021, paragraph 1 or the subtraction required by § 43-1022, paragraph 3 shall be limited to that portion of the beneficiary's share of the fiduciary adjustment that is derived from or related to income from sources within this state.