Resident trusts with no NJ income

New Jersey resident trusts that meet the following are exempt from taxation:
  1. No New Jersey source of income
  2. No tangible assets in New Jersey
  3. No fiduciaries are New Jersey residents
UltraTax CS will automatically recognize if the trust meets this criteria and will check the box on line 26. You'll also get a diagnostic telling you to attach a statement certifying the trust's exempt status. This statement is a document written by the fiduciary attesting to its exempt status - there is no form or certificate of exemption. You can attach a PDF to the return or enter a
General footnote
on the
NJGen
screen in the General folder.
If the trust should be taxed, mark the
Resident estate / trust with New Jersey tax nexus
field on the
NJGen
screen and a tax will calculate.
If the trust should be exempt from tax, but the box on line 26 isn't marked, verify that you need to file the return.

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