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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Allocation

The State of New Jersey allows allocation of income, guaranteed payments, and 401k contributions using a substitute method of allocation.  Businesses must apply for approval from the State of New Jersey in order to use a substitute method of allocation. To use this method of allocation, mark the Substitute Method of Allocation Granted field and enter the NJ allocated amounts in View > Apportionment > New Jersey tab. Use the PtrAlloc buttons in Screen NJAlloc to specially allocate the amounts to partners using ratios other than the profit sharing percentages.

Income received from passthrough entities must be allocated using the fields in Screen NJSchA.

Apportionment

The State of New Jersey uses three-factor apportionment based on property, payroll, and sales for Schedule NJ-NR-A and uses a single sales factor for Schedule J. Data entry for apportionment can be entered in View > Apportionment > New Jersey tab. If no amounts are entered in the Apportionment Information dialog, UltraTax CS assumes the client does 100% of business within the state.

NJ-NR-A

If activities are conducted both inside and outside New Jersey, the Business Allocation Schedule (NJ-NR-A) must be completed. This is used to compute NJ Partnership Income on Form NJ-1065, page 2.

Schedule NR-A includes equally weighted factors for Property, Payroll, and Receipts.

Schedule J

If there are non-resident partners, New Jersey Schedule J must be completed in order to calculate the Corporate Allocation factor, which is used to determine taxable income for non-resident partners on the Partners Directory of Form NJ-1065.

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