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Screen NJK1 - New Jersey Schedule K-1, Partnership and S Corporation (1040)

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Overview

Use this screen to enter data to calculate the New Jersey gross income from pass through entities. Data in this input screen transfers from the federal K1, K1-2, K1-4 and K1-St screens. Information in this screen is used to calculate the Partnership Income Summary Worksheet and the S Corporation Income Worksheet. If electronically filing return, also see the EFKP or EFKS screen to complete additional data included in the electronic record. Use the K1Wrk screen to convert federal K-1 income into New Jersey K-1 income if a New Jersey K-1 wasn't supplied to the taxpayer.

General Information

Use this section to enter data regarding the type of pass through entity and current ownership status.
Corporation is federal S election but New Jersey C election
Mark this field if the entity is a C Corporation for New Jersey taxation purpose but elects federal S Corporation status. UltraTax CS ignores the unit in the calculation for S Corporation income on the return.
Disposed
Enter code
1
 or
2
 when all New Jersey interest in the pass through entity ended. The code will transfer from the federal screen when the entire taxpayer’s interest is disposed of. For New Jersey purposes, either
1
 or
2
 in this field will change the reporting of capital gains and will cause the unit to be removed upon proforma to the following year.

Income as Calculated under New Jersey Law

Use this section to enter the taxpayer’s and/or spouse’s share of partnership / S Corporation income. Income entered here will be reported on the Partnership Income Summary Worksheet or the S Corporation Income Summary Worksheet.
Source document for New Jersey K-1 income
If you have a New Jersey K1 or if you have calculated income under New Jersey law outside of UltraTax CS indicate so by option 1 or 2 and enter the New Jersey income on the federal K1 screens as follows:
If a resident: Enter the New Jersey K-1-2 Income in the
Ordinary business income State if Different
 field if the K1 is coded to New Jersey or in the New Jersey column on the allocation grid if there are multiple states involved.
If a nonresident/part-year resident: Enter the New Jersey K-1 income earned in the state in the
State if Different
 field if the K1 is coded to New Jersey or in the New Jersey column on the allocation grid if there are multiple states involved. Enter the total income earned from the entity on the K1-St screen in the
Ordinary Income everywhere (New Jersey)
 field.
note
The income from the New Jersey K1 won't be the same as the total of all of the numbers on the federal K1. It'll be modified for New Jersey law adjustment as documented in the publications GIT-9P and GIT-9S. These differences include adjustments for taxes based on income, adjustments for Section 179 in excess of $25,000 and bonus depreciation in the year place in service and then depreciation difference every year until assets are fully depreciated, capital gains differences based on multiple law differences, interest adjustments, expenses adjustments related to tax exempt income, etc.
Net income from New Jersey K-1 or worksheet supplied by taxpayer
For resident returns, the All Sources column is transferred from the
Ordinary Income
 field, State if different column in the federal K1-2 screen. For nonresident returns / part-year resident returns, the All Sources column is entered in the federal K1-St screen as Ordinary income everywhere. The New Jersey Source column is available for nonresident / part-year resident returns only and is transferred from the
Ordinary income
 field State if different column in the federal K1-2 screen.
Gains / - loss disposition using New Jersey basis not included in net income
Enter the adjustment to income reported on the federal return as gains or loss from assets owned by the taxpayer caused by a difference in New Jersey basis. This amount will be included with income reported from the pass-through entity and will be excluded from the amount reported as net gains.
The federal gain will be included on the Partnership Income Summary Worksheet as UPE not including the GIT-Dep adjustment or the S Corporation Income Summary as expenses not including the GIT-Dep adjustment. The GIT-Dep adjustment is based on difference in New Jersey and federal depreciation rules.

Schedule B or Part 1 Net Gains Adjustments

Use this section to enter adjustments to the Net Gains or Income from Disposition of Property Schedule B of the resident return or Part 1 of the nonresident return.
Amount to be adjusted out of other net gains
Net gains or income from disposition of property starts with the amount reported on the federal return. New Jersey includes gains from pass-through entities as pass-through income. They aren't reported in the Net gain amount. Use this field to adjust the total federal gain by the amount of the gain related to the pass-through entity.

Additional Business Expenses

Use this section to enter expense not allowed on the federal return but allowed under New Jersey Law.
Excess meal and entertainment deduction
Enter the portion of the meals and entertainment expense above the amount allowed for a federal expense.
Expenses entered in the federal 2106 screen as shared business expense, unreimbursed partnership expense, and asset tab expense entered of the federal input screens will transfer directly to the summary worksheets.

Payment of Tax Made on Behalf of Partner or Shareholder

Withholding from the federal K1-4 screen will be displayed here. For paper filed return attach proof of withholding to the return. For electronically filed return complete the EFKP or EFKS screen using the New Jersey K-1. If you didn't receive a New Jersey K-1 then you must paper file return to claim withholdings.

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