43-1097 - Arizona Statutes

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.