43-1097. Change of residency status
A. During the tax year in which a taxpayer changes from a resident to a
nonresident, Arizona taxable income shall include all of the following:
1. All income and deductions realized or recognized, or both, depending on the
taxpayer's method of accounting, during the period the individual was a resident, and any
income accrued by a cash basis taxpayer prior to the time the taxpayer became a
nonresident of this state.
2. All income and deductions earned in Arizona or derived from Arizona sources
after the time the taxpayer became a nonresident of this state.
B. During the tax year in which a taxpayer changes from a nonresident to a
resident, Arizona taxable income shall include all of the following:
1. All income and deductions realized or recognized, or both, depending on the
taxpayer's method of accounting, during the period the individual was a resident, except
any income accrued by a cash basis taxpayer prior to the time the taxpayer became a
resident of this state.
2. All income and deductions earned in Arizona or derived from Arizona sources
prior to the time the taxpayer became a resident of this state.
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