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Screen NJRent - New Jersey Rent and Royalty Property (1040)
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Overview
Use this screen to calculate Form NJ-1040, Schedule NJ-BUS-1 and Form NJ-1040NR, Schedule NJ-BUS-1NR, for New Jersey net gains or income from rents, royalties, patents, and copyrights. Data in this input screen transfers from federal Schedule E, Page 1, and the federal Rent screen.
Information from each section is used to calculate the New Jersey Federal Schedule E Reconciliation Worksheet. The worksheet provides a hard copy calculation of New Jersey Schedule E income when different from federal Schedule E income.
New Jersey requires net rental and net royalty income to be reported in separate fields on the NJ-BUS-1 for residents or on NJ-BUS-1NR for nonresidents. Rental income and royalty income must therefore be reported on separate federal Rent screens. Rents received amounts will be ignored if both
Rents received
and Royalty received
fields contain data.Rent and Royalty Property - General Information
Items in this section transfer from the federal E screen. Information in this section is used to calculate the New Jersey Federal Schedule E Reconciliation Worksheet. The worksheet provides a hard copy calculation of New Jersey Schedule E income when different from federal Schedule E income. New Jersey Schedule E income calculated on this worksheet transfers to Schedule NJ-BUS-1 or NJ-BUS-1NR.
2012 law change allows an adjustment to income under the Alternative Business Calculation, which will be 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 on this screen. Losses are not reported on the
2024
return but are used to calculate the 2024
Alternative Business Increment Deduction and the 2025
Alternative Business Increment Deduction on the Tax Projection Worksheet.Federal identification number
Enter federal identification number if you have one for the Schedule NJ-BUS-1 and Schedule NJ-BUS-2 forms. Rental, royalty, patents, and copyright income will be listed under the taxpayer's Social Security number when this field is blank.
New Jersey ownership %
The percentage in this field transfers from the percentage used to calculate the rental information reported on federal Schedule E, Page 1 and can't be changed. This percentage is applied automatically to additions and/or subtraction adjustments.
Federal type of property / New Jersey type
The income type from the federal Schedule E transfers to this screen. New Jersey has only 4 categories for classifying rental income. Federal Code
6
(Royalty) will be reported as royalty income and all other income will be reported as rental income on the New Jersey return unless a New Jersey type code is entered. New Jersey has the additional categories of patent income and copyright income. Enter code 3
or 4
in the New Jersey specific type to report the income as patent or copyright income.Income and Expenses
Amounts in this section transfer from federal Schedule E. Information in this section is used to calculate New Jersey's Schedule NJ-BUS-1 Part IV for a resident return and Form NJ-BUS-1 Part II for a nonresident return.
Federal income (Press F1 for allocation details)
Enter net income as reported on the federal Schedule. For detailed information on the state allocation spreadsheet, see State allocation spreadsheet for business, farm, farm rent, and rent income.
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
2024
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.New Jersey depreciation for assets placed in service prior to 1/1/04 (Force)
State depreciation amounts are automatically used to calculate the net gains or income from rents, royalties, patents, and copyrights when the asset module is 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 2003 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 later.
NJ 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
Unless the entire business unit has been fully disposed as indicated by a disposal code of
1
or 2
entered in the equivalent federal screen, dispositions that can be identified to a particular unit of the NJC, NJF, NJK1, NJ4835, NJK1T, or NJRent screen are gathered and adjusted for differences in federal vs. New Jersey depreciation. These amounts are then added to this unit's net income or loss and reported as such on the New Jersey return. Use this field to override the calculated amount.Gains from disposition of New Jersey tax-exempt obligations
Enter the gain/loss from the sale of tax exempt obligations that were part of the income reported on the federal Schedule E.
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 in the Calculated column 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 on 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 are not available for transfer as either identifiable to a particular activity unit or are not 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 are reported as other net gains on Schedule B for resident returns or on Part I for nonresident returns.