CCH Axcess Tax

Special Allocations and Information for All Partners and Nonresident Partners

New Jersey Special Allocation Codes

Use the following codes to specially allocate New Jersey income:

All Source	NJ Source	Description
32025	32026	Partners' 401K contribution
32027	-	Subtraction - Section 179 Expense
32029	-	Subtraction - Interest on US obligations, line 15d
32031	-	Subtraction - Interest on NJ obligations, line 15e
32035	-	Subtraction - 50% of meals and entertainment
32036	-	Tiered Income - Ordinary income from trade/business
32037	-	Tiered Income - Net income from rental real estate
32038	-	Tiered Income - Net income from other rentals
32039	-	Tiered Income - Interest income
32040	-	Tiered Income - Dividend income
32041	-	Tiered Income - Royalty income
32042	-	Tiered Income - Net gain from disposition of property
32043	-	Tiered Income - Guaranteed payments to partners
32044	-	Tiered Income - Net Section 1231 gain (loss)
32045	-	Tiered Income - Other income (loss)
32046	-	Tiered Income - Tax-exempt interest income
32047	-	Subtraction - Rental real estate income, line 15a
32048	-	Subtraction - Gain from prop. disposition, line 15b
32049	32050	Allocated Inc. - Rental real estate income, line 17
32051	32052	Allocated Inc. - Gain from property dispositions, line 18
32053	32054	Allocated Inc. - Net partnership income, line 19
32055	32072	Guaranteed payments to partners, line 22a
32056	-	Guaranteed payments to partners - pension, line 22b
	32073
32059	-	Subtraction - Guaranteed pmts. to partners, line 15c
32060	-	Addition - Taxes based on income, line 13a
32061	32062	Income from tiered partnerships, line 20
32064	-	Bonus depreciation
32065	32066	Net income after adjustments, line 16
32067	-	Entire net income (Partners Directory, Column H)
32068	-	Health Enterprise Zone Deduction
32069	-	Sheltered workshop tax credit
32070	32071	Schedule L, line 23
32076	-	Total federal depreciation
32077	-	Total NJ Section 179 deduction allowable
32078	-	Total NJ depreciation allowable
32079	-	Total NJ adjustment to federal 179 recapture income
32080	-	Total adjustment to federal gain (loss) on disposition
32081	-	NJ depreciation adjustment

Note: If you specially allocate federal amounts, and the corresponding New Jersey totals are different,you must also specially allocate New Jersey amounts.

Guaranteed Payments to Partners

Guaranteed payments made to retired partners pursuant to a retirement agreement or pension plan that resulted from a period of service to the partnership are extracted from other guaranteed payments.

Use the Generic State Schedule K-1 Information worksheet, Other State Information section, to identify these guaranteed payments made to retired partners. Enter in "State Use 1" the portion of guaranteed payments reported on the partner's federal Schedule K-1 that should be reported as pension income on Form NJK-1. Be sure to enter the "Partner Number."

If a substitute method of allocation was granted, enter the actual New Jersey source net guaranteed payments to partners on the New Jersey Income/Deductions worksheet, Income section.

Date Partner's Interest in Partnership Began

The date the business started, as entered for the federal return, is used as the date each partner's interest began unless overridden for all partners on the New Jersey General worksheet, Basic Data section. The date can be overridden for a selected partner on the Generic State Schedule K-1 Information worksheet, Other State Information section, "State Use Date 1". Be sure to enter the "Partner Number."

Partners' Residency Status and Type

Assumptions are made for the "Code" on the "Partner's Directory" based on the "Entity Code" and "State Code" entered for each partner for the federal return. If the federal entity code is not recognized by New Jersey, or to override the code, enter the appropriate code on the Generic State Schedule K-1 Information worksheet, Other State Information section, "State Use Code." Be sure to enter the "Partner Number."

Valid New Jersey codes are:

Code	Description
RI	New Jersey Resident Individual
NR	Nonresident Individual
NRC	Nonresident Individual composite-return participant who made quarterly payments of estimated tax
PI	Part Year Resident Individual
RP	New Jersey Resident Partnership
NP	Nonresident Partnership
NPM	Nonresident Partnership*
RT	New Jersey Resident Trust
NT	Nonresident Trust
RE	New Jersey Resident Estate
NE	Nonresident Estate
RC	New Jersey Corporation
FC	Non-New Jersey Corporation
FCM	Non-New Jersey Corporation*
EFC	Exempt Foreign Corporation
RO	New Jersey Resident Other
NO	New Jersey Other
NOM	New Jersey Other*
* Codes NPM, FCM and NOM are used to identify nonresident partners that maintain a regular place of business in New Jersey other than a statutory office.

Composite Return

Form NJ-1080-C, Nonresident Composite Return, is produced for all nonresident individual partners when there is an entry in the New Jersey Composite worksheet, Nonresident Composite Return (Form NJ-1080-C) section, to include all nonresident individual partners. To include selected partners only, use the Generic State Schedule K-1 Information worksheet, Other State Information section, "Print Composite Return for All Nonresident Partners." Be sure to include the "Partner Number."

Form NJ-1080-E, Election to Participate in a Composite Return, is produced for all individual nonresident partners when there is an entry on the New Jersey Other worksheet, Election to Participate in a Composite Return (Form NJ-1080-E) section, to prepare the election form for all nonresident individual partners.. To produce Form NJ-1080-E for selected partners only, use the Generic State Schedule K-1 Information worksheet, Other State Information section, "X Box 2." Be sure to include the "Partner Number."

Final/Amended Schedules NJK-1

Schedules NJK-1 are designated as final or amended if the same partner's federal Schedule K-1 is final or amended. In addition, if the New Jersey return is final or amended, all Schedules NJK-1 are designated as final or amended. Use the Generic State Schedule K-1 Information worksheet, Other State Information section, to override these defaults or to designate a selected K-1 separately.

Partners' Percentages for Printing Purposes Only

State Printing Percentages Override

Use the Generic State Schedule K-1 Information worksheet, Partner's Percentages Overrides section, to override, for printing purposes only, the partners' profit, loss, and capital percentages, for Schedule NJK-1. Enter "NJ" as the "State Code"; if this box is blank, the override percentages are printed for every state in the return. No computations are affected by these print-only percentages.

Nonresident Partners

New Jersey passes through to nonresident partners the apportioned share of all income items, except rental real estate income and the gain or loss from the disposition of real property, which is determined based on whether or not the real estate is actually located in New Jersey. The apportionment percentage is computed from entries on the federal Allocation and Apportionment worksheet or the New Jersey Allocation and Apportionment worksheet. New Jersey real estate amounts are determined from federal entries of "NJ" as the "State" where entries are made for dispositions of property and rental income for the federal return. Overrides for all New Jersey source amounts are available on the New Jersey Income/Deductions worksheet, Income section.

Always indicate a partner's state of residency in the basic partner information entered for the federal return. If no state of residency is entered, the partner is considered to be a resident of New Jersey (and any other state present in the return). If anything other than "NJ" is entered, the partner is considered to be a New Jersey nonresident.