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Screen NJC - New Jersey Business (1040)
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Overview
Use this screen to calculate New Jersey net profits from business. Data in this screen transfers from both federal Schedule C and the federal C screen.
Income
Items in this section transfer from the federal C screen. Information in this section is used to calculate the New Jersey Federal Schedule C Reconciliation Worksheet. The worksheet provides a hard copy calculation of New Jersey net profit from business income when different from federal Schedule C income. New Jersey net profit from business income calculated on this worksheet transfers to Schedule NJ-BUS-1 or NJ-BUS-1NR.
Gross income / Total expenses
For detailed information on the state allocation spreadsheet, see State allocation spreadsheet for business, farm, farm rent, and rent income. Review this information before making entries in these fields.
2012 law change allows an adjustment to income under the Alternative Business Calculation which is based on the net business loss from net profits from business, distributed share of partnership income, net-pro rata share of S Corporation income and net gains or net income from rents, royalties, patents and copyrights. Losses should be entered in this screen. Losses won't be reported on the return, but are used to calculate the Alternative Business Increment Deduction for
2024
and the Alternative Business Increment Deduction in 2025
on the Tax Project Worksheet.Federal Statutory Employee
Federal self-employment code / New Jersey qualified as self-employed
W-2 income for a statutory employee reported on Schedule C is treated as wages for New Jersey purposes. If the client qualifies under New Jersey law as a self-employed individual or an independent contractor, reduce the New Jersey wages shown in the NJW2 screen by the wages included in the
Gross income
field in this input screen by using codes 22
and 23
in the federal W2 screen, Box 14. Enter X
to include the information in the Net profits from business
field on Form NJ-1040, Page 2 and Form NJ-1040NR, Page 2.Additions
Use this section to enter additions to business income for New Jersey purposes.
Amounts deducted for taxes based on income
UltraTax CS transfers amounts entered on the federal Schedule C,
Taxes / licenses
statement window using the following codes:Code | Description |
|---|---|
6 | State income taxes |
9 | UBT taxes NY |
10 | Local income taxes |
12 | Excise taxes TN |
13 | UBT taxes DC |
14 | MTA taxes NY |
Other additions
Enter other additions to business income in this statement window to create a submittable statement that attaches to the main form.
Subtractions
Use this section to enter subtractions from business income for New Jersey purposes.
Other subtractions
Enter other subtractions from business income to create a submittable statement that attaches to the main form.
Depreciation and Dispositions
Use this section to enter depreciation allowed to net business income for New Jersey purposes.
New Jersey depreciation for assets placed in service prior to 1/1/04 (Force)
State depreciation amounts are automatically used to calculate the net profits from business when the asset module was used to enter asset information. Make an entry in this field to use an amount other than the amount calculated by UltraTax CS, or use this field when the module isn't being used to calculate depreciation, for assets placed in service 12/3/03 and prior.
New Jersey depreciation for assets placed in service after 12/31/03 (Force)
State depreciation amounts are automatically used to calculate the net profits from business when the asset module was used to enter asset information. Make an entry in this field to use an amount other than the amount calculated by UltraTax CS, or use this field when the module isn't being used to calculate depreciation for assets placed in service for tax year 2004 and after.
New Jersey Section 280F recapture (Force)
Make an entry in this field to use an amount other than the section 280F recapture adjustment amount calculated by UltraTax CS.
Gain (loss) from dispositions adjusted for New Jersey depreciation
Make an entry in this field to use an amount other than the disposition adjustment amount calculated by UltraTax CS for assets placed in service in 2004 and after or use this field when the asset module isn't being used to calculate the disposition adjustment.
Amount to be adjusted out of other net gains
The amount calculated on federal Form 4797 for ordinary gains is reduced for those dispositions that are business related or otherwise identified as dispositions reported as business, rental, partnership, S Corporation, or trust and estate gains. The amount appearing is the gain or loss attributable to this unit as if it were reported on federal Form 4797 (not adjusted for New Jersey depreciation differences). Amounts not appearing in this field are treated as dispositions of a personal nature and are reported as other net gains on Form NJ-1040, Schedules A and B, Schedule B for resident returns, or Form NJ-1040NR, Page 3, Part I, for nonresident returns. Every effort has been made to capture all amounts necessary for this calculation. Some gains related to mass dispositions, casualty, and theft, as well as prior year installment gains, and passive activity limitations aren't available for transfer as either identifiable to a particular activity unit or aren't available as adjusted for New Jersey basis. Use this field to override the calculated amount.
Business related dispositions are reported as business related income. See the worksheets for business income, farm income, partnership income, S Corporation income, farm rental income, and trust and estate income. If this unit has been disposed of in its entirety, the gain / loss from disposition is reported as other net gains on Schedule B for resident returns or on Part I for nonresident returns.