Source: http://www.docstoc.com/docs/45572810/Form-NJ-1065
Timestamp: 2013-05-20 04:07:28
Document Index: 635531105

Matched Legal Cases: ['ART-200', 'ART-200', 'ART-100', 'ART-200', 'ART-100', 'ART-200', 'ART-100', 'ART-100', 'ART-100', 'ART-\n100', 'ART-100', 'ART-160', 'ART-160', 'ART-100', 'ART-100', 'ART-100', 'ART-200', 'ART-200', 'ART-100', 'ART-100', 'ART-100', 'ART-200', 'ART-100', 'ART-200', 'ART-100', 'ART-200', 'ART-200', 'ART-\n100', 'ART-200', 'ART-200']

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new jersey, tax year, gross income tax, tax return, partnership return, form 1065, estimated tax, net income, schedule c, civil union, electronic filing, partnership income, income tax return, sales tax, schedule k-1
2007 Year 2007, or Tax Year Beginning __________________, 2007 and Ending _________________, 20____
12.                                                                                                                       .
Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal (add lines 1 through 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NJ-1065                                                                                                                                                                       Page           of
Partnership name as shown on Form NJ-1065                                                                                                                       Federal EIN
A                         B                           C                    D                  E                     F                G            H                 I                J                 K
Distributive Share of Partnership   Net Gain (Loss) From Disposition of Assets                 Nonresident Partner’s                   Nonresident
Code                                                                                                                                 Pension                       Share of       Noncorporate     Corporate
Name and Principal Address                                                                                                    Share of Total
Total Distribution       NJ Source      Total Gain (Loss)        NJ Source                       Income          NJ Income      Partner’s Share Partner’s Share
For Calendar Year 2007, or Fiscal Year Beginning ____________________, 2007 and ending _______________, 20______
Partner’s SS # or Federal EIN                                                                        Partnership’s Federal EIN
Partner’s Name                                                                                       Partnership’s Name
Street Address                                                                                       Partnership’s Street Address
City                                                          State              Zip Code            City                                                 State           Zip Code
(i) Before Decrease                   (ii) End of Year
Code                                                                   or Termination
Date Partner’s Interest in Partnership began: _______________________________                       Profit Sharing               __________________%              ___________________%
Month         Day        Year
Final NJK-1                             Hedge Fund                                     Loss Sharing                 __________________%              ___________________%
Amended NJK-1                           Member of Composite Return
Capital Ownership            __________________%              ___________________%
Income Classifications                         A. Total Distribution                Enter Amounts on                                                        NJ-1040NR Filers
1. Partnership Income (loss)                                                                   .
Income (loss)                                                                              Line 20, Page 2                                                       Line 22, Page 1
5. Pension                                                                                    Line 19, Page 2
of Assets as a Result of a                                                                 Line 18, Page 2                                                       Line 18, Page 1
1. Nonresident Partner’s Share of NJ Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         1.
1st Quarter NJ                          2nd Quarter NJ                           3rd Quarter NJ                         4th Quarter NJ
Other NJ Tax Payments
Estimated Tax Payment                   Estimated Tax Payment                    Estimated Tax Payment                  Estimated Tax Payment
2. Partner’s HEZ Deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   2.
3. Partner’s Sheltered Workshop Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           3.
NJ-1065 - 2007                                                                                                               SCHEDULE A
Column A:                                                              .
NJ-1065 - 2007                                                                                                                                       SCHEDULE B
Available Sheltered Workshop Tax Credit (add lines 3 through 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a) In New Jersey (Part II, Column A, line 8)                                                1(a)
(b) Everywhere (Part II, Column B, line 8)                                                   1(b)
(c) Percentage in New Jersey (line 1(a) divided by line 1(b)). Enter in Column B.                                             1(c)        •
2. Receipts:                                                                                                                       decimal places. Do not express as a per-
(a) From sales of tangible personal property shipped to points within New Jersey.            2(a)                             cent. Example:
(b) From services performed in New Jersey                                                    2(b)                                 123,456
(c) From rentals of property situated in New Jersey                                          2(c)                               1,000,000 =    •   1 2 3 4 5 6
(d) From royalties for the use in New Jersey of patents and copyrights                       2(d)
(e) All other business receipts earned in New Jersey.                                        2(e)
(f) Total New Jersey receipts (Total of lines 2(a) to 2(e), inclusive, in Column A)          2(f)
transactions everywhere.                                                               2(g)
(h) Less nonsourced receipts. From Schedule J Part IV.                                       2(h)
(i)   Total everywhere receipts allowable-line 2(g) minus line 2(h)                           2(i)
(j)   Percentage in New Jersey (line2(f) divided by line 2(i)). Enter in Column B                                             2(j)
(k) Double Weighted receipts factor Enter 2(j)                                                                               2(k)
(a) In New Jersey                                                                            3(a)
(b) Everywhere                                                                               3(b)
(c) Percentage of New Jersey (line 3(a) divided by line 3(b)). Enter in Column B.                                             3(c)
Enter in Column B.                                                                                                               4        •
on Page 2 of Form NJ-1065.                                                                                                       5
PART I - GENERAL INSTRUCTIONS REGARDING ALLOCATION                                              Ships, aircraft, satellites used in the communications industry, and
OF ADJUSTED ENTIRE NET INCOME:                                                                  other mobile or movable property are subject to the specific rules
(a) WHO IS PERMITTED TO ALLOCATE: No domestic or for-                                      defined in N.J.A.C. 18:7-8.4.
eign entity is permitted to allocate less than 100% of its adjusted                (b) Line 2(a) - RECEIPTS FRACTION: Receipts from sales of tan-
entire net income to New Jersey, unless, during the period covered                     gible personal property are allocated to New Jersey where the goods
by the return, it actually maintained a regular place of business                      are shipped to points within New Jersey.
outside of New Jersey other than a statutory office.                                   Receipts from the sale of goods are allocable to New Jersey if
(b) DEFINITION OF REGULAR PLACE OF BUSINESS: A “reg-                                       shipped to a New Jersey or a non-New Jersey customer where pos-
ular place of business” is any bona fide office (other than a statuto-                 session is transferred in New Jersey. Receipts from the sale of
ry office), factory, warehouse, or other space of the taxpayer which                   goods shipped to a taxpayer from outside of New Jersey to a New
is regularly MAINTAINED, OCCUPIED and USED by the tax-                                 Jersey customer by a common carrier are allocable to New Jersey.
payer in carrying on its business and in which one or more regular                     Receipts from the sale of goods shipped from outside of New Jersey
employees are in attendance. To maintain a place of business, the                      to a New Jersey location where the goods are picked up by a com-
taxpayer must either own or rent the premises. That cost must be                       mon carrier and transported to a customer outside of New Jersey are
borne directly by the taxpayer and not by some related entity or per-                  not allocable to New Jersey.
son.                                                                                   Receipts from the following are allocable to New Jersey; services
(c) ALLOCATION PERCENTAGES: In computing the allocation                                    performed in New Jersey; rentals from property situated in New
factor in Schedule J, division must be carried to six decimal places,                  Jersey; royalties from the use in New Jersey of patents or copy-
e.g., .123456.                                                                         rights; all other business receipts earned in New Jersey.
(d) ELECTION TO ALLOCATE: If the taxpayer is entitled to allo-                         (c) Lines 2(e) and 2(g)
cate, the election should be made with the filing of the partnership                   (1) RECEIPTS FROM SALES OF CAPITAL ASSETS:
return regardless of the amount of income reported. Schedule J                             Receipts from sales of capital assets (property not held by the
must be completed to validate the election.                                                taxpayer for sale to customers in the regular course of business),
(e) Only the receipts, property and payroll expenses attributable to the                       either within or outside New Jersey, should be included in the
partnership entity are to be used in computing the allocation factor                       numerator and the denominator based upon the net gain recog-
denominators.                                                                              nized and not upon gross selling prices. Where the taxpayer’s
PART II - AVERAGE VALUES: Average value is generally computed on                                    business is the buying and selling of real estate or the buying
a quarterly basis where the taxpayer’s accounting practice permits such com-                        and selling of securities for trading purposes, gross receipts
from the sale of such assets should be included in the numerator
(monthly, weekly or daily) may be used. Where the taxpayer’s accounting                             and the denominator of the receipts fraction.
practice does not permit computation of average value on a quarterly or more                (d) Line 2(h) - Receipts that have not been included in the numerator
frequent basis, semi-annual or annual frequency may be used only where no                       of an apportionment factor of another taxing jurisdiction’s tax
distortion of average value results. If any basis other than quarterly is used,                 return based on income or measured by profits, business presence
state the basis and reasons for use thereof on a rider.                                         or business activity shall be excluded from the denominator.
The average values of real and tangible personal property owned which are                   (e) Lines 2(j) and 2(k) - The percentage of receipts in New Jersey
used in determining the property fraction of the allocation factor are based on                 should be entered on both lines 2(j) and 2(k) to effect a double-
book value. The numerator and denominator must take into account accu-                          weighted receipts fraction in the computation of the allocation fac-
mulated depreciation deferred for net income purposes where the taxpayer                        tor.
accounts for its property on its books on a Federal income tax basis. Rented                (f) Line 3 - PAYROLL FRACTION: In general, a taxpayer report-
or leased property is valued at eight times its annual rent, including any                      ing to the Division of Employment Security in the New Jersey
amounts (such as taxes) paid or accrued in addition to or in lieu of rent dur-                  Department of Labor will allocate to New Jersey all wages, salaries
ing the period covered by the return. All other property which is used by the                   and other personal service compensation, etc., reportable to that
taxpayer but is neither owned, rented or leased, should be valued at book                       Division, including the portions thereof, in individual cases, in
value, however, if no such book value exists, the market value of the proper-                   excess of taxable wages. All executive salaries are includible in
ty should be used.                                                                              both the numerator and denominator. See N.J.S.A. 54:10A-7 for
PART III - COMPUTATION OF ALLOCATION FACTOR: This                                               the definition of wages, salaries and other personal services com-
schedule may be omitted if the taxpayer does not maintain a regular place of                    pensation allocable to New Jersey.
business outside this State other than a statutory office, in which case the tax            (g) ALLOCATION FACTOR - GENERAL: The allocation factor is
law requires the allocation factor to be 100%.                                                  computed by adding together the percentages shown at lines 1(c),
(a) Line 1 - PROPERTY FRACTION: For general information                                    2(j), 2(k) and 3(c) of Schedule J, Part III for the period covered by
regarding method of valuation in arriving at average values, see                       the return, and dividing the total of the percentages by four (4).
instruction for Part II. Tangible personal property is within New                      However, if the property or payroll fraction is missing, the remain-
Jersey if and so long as it is physically situated or located here.                    ing percentages are added and the sum is divided by three. If the
Property of the taxpayer held in New Jersey by an agent, consignee                     receipts fraction is missing, the other two percentages are added and
or factor is (and property held outside New Jersey by an agent, con-                   the sum is divided by two. If two of the fractions are missing, the
signee or factor is not) situated or located within New Jersey.                        remaining percentage may be used as the allocation factor. A frac-
Property, while in transit from a point outside New Jersey to a point                  tion is not missing merely because its numerator is zero, but is miss-
in New Jersey or vice versa does not have a fixed situs either with-                   ing if its denominator is zero.
in or outside the State and, therefore, will not be deemed to be “sit-        PART IV - COMPUTATION OF THROWOUT RECEIPTS: Provide
uated” or “located” either within or outside New Jersey and accord-           the name of the jurisdiction and the amount of the receipts that have not been
ingly the average value of such property should be omitted from               included in the other jurisdiction’s tax return apportionment numerator.
NJ-1065 - 2007                                                                                                                                                                         SCHEDULE L
9 Net IRC section 1231 gain (loss)         9                                                      .
(9-07)                                BUSINESS ALLOCATION SCHEDULE
Enter name, address and Federal Employer Identification Number as shown on the Form NJ-1040NR, Form NJ-1041 or Form NJ-1065.
Legal name of taxpayer                                                                                                  Federal EIN
c. Percentage in New Jersey. (Divide Line 1a by Line 1b)                                                                          1c                %
c. Percentage in New Jersey (Divide Line 2a by Line 2b)                                                                           2c                %
c. Percentage in New Jersey. (Divide Line 3a by Line 3b)                                                                          3c                %
2007                        REGULAR PLACE OF BUSINESS IN NEW JERSEY
allocated entirely to this State. If the partnership is not a “qualified investment partnership”, an “investment
club”, or is not listed on a United States national stock exchange, but it has a nonresident noncorporate or a
nonresident corporate partner and it has operations outside New Jersey, it must also complete Schedule J
&quot;Corporation Allocation Schedule&quot; and file it with Form NJ-1065 Partnership Return and pay any applicable
tax due. Schedule J is not required for a partnership that meets hedge fund status, if its only nonresident
partners are individuals, estates or trusts.
Applicable to privilege periods beginning on or after January 1, 2007, partnerships that are subject to tax
payments shall make installment payments of 25% of that tax on or before the 15th day of each of the fourth
month, sixth month and ninth month of the privilege period and on or before the 15th day of the first month
succeeding the close of the privilege period.
2______________________________________2007 Form 1065 ___________________________________________
individual, an estate or a trust subject to taxation pursuant to      If an “investment club” meets the following criteria, it will be
the “New Jersey Gross Income Tax Act” that is not a resident          exempt from the $150 per owner annual partnership filing fee
taxpayer or a resident estate or trust under that act.                and from the requirement that a partnership make payments on
behalf of its nonresident owners. The “investment club” must
Nonresident Corporate Partner – means a partner                       be an entity that is classified as a partnership for federal
that is not an individual, an estate or a trust subject to taxation   income tax purposes, all of the owners are individuals and all
pursuant to the “New Jersey Gross Income Tax Act” that is             of the assets are securities, cash, or cash equivalents. The
not a corporation exempt from tax pursuant to N.J.S.A.                market value of the total assets of which do not exceed, as
54:10A-3 and that does not maintain a regular place of                measured on the last day of its privilege period, an amount
business in this State other than a statutory office.                 equal to the lesser of $283,800 or $39,800 per owner of the
entity. The investment club is not required to register itself or
Qualified Investment Partnership – means a                            its membership interests with the federal Securities and
partnership that has more than 10 members or partners with no         Exchange Commission.
member or partner owning more than a 50% interest in the
entity and that derives at least 90% of its gross income from         Who Must File
dividends, interest, payments with respect to securities loans,       Every partnership that has income or loss derived from
and gains from the sale or other disposition of stocks or             sources in the State of New Jersey, or has a New Jersey
securities or foreign currencies or commodities or other              resident partner, must file Form NJ-1065. A partnership must
similar income (including but not limited to gains from swaps,        file even if its principal place of business is outside the State
options, futures or forward contracts) derived with respect to        of New Jersey. Form NJ-1065 is no longer solely an
its business of investing or trading in those stocks, securities,     information return. A filing fee and tax may be imposed on
currencies or commodities, but “investment partnership” shall         the partnership. Partners subject to the gross income tax still
not include a “dealer in securities” within the meaning of            must report and pay tax on their share of partnership income
section 1236 of the Federal Internal Revenue Code of 1986.            or loss.
Hedge Fund Status             – is met for New Jersey tax             How to File
purposes if the investment entity&#39;s only activity is the              NJ-1065 filers that have ten or more partners are now required
purchase, holding or sale of intangible personal property, such       to file and make payment by electronic means. To obtain the
as commodities or securities and such intangible personal             electronic filing and payment formats or to obtain additional
property is not held for sale to customers as defined at              information on electronic filing and payment options visit the
N.J.S.A. 54A:5-8c. A partnership that qualifies for hedge             New Jersey Division of Revenue Website at
fund status in one year may not meet the requirements every           http://www.state.nj.us/treasury/revenue or call the Alternate
Filing Branch at 609-633-1132.
__________________________________________2007 Form 1065 _______________________________________ 3
NJ-1065 filers that have less than ten partners have the option     Postmark Date. All New Jersey income tax returns post-
to file by electronic means or on paper.                            marked on or before the due date of the return are considered
to be filed on time. Returns postmarked after the due date are
What to File                                                        deemed to be late. The filing date for a late return is the day
The following forms and statements must be included with            the return is received by the Division, not the postmark date.
Form NJ-1065:                                                       Where to File
•    Schedule NJK-1 for every partner.                             Mail your completed Form NJ-1065 to:
•    Pages 1 through 4 of the Federal Form 1065, Federal                NJ DIVISION OF TAXATION
Form 8825, Federal Schedule D and any Federal                      REVENUE PROCESSING CENTER
extension request forms filed                                      PO BOX 194
•   A Schedule NJ-NR-A if any of the following conditions               TRENTON NJ 08646-0194
apply: (1) the partnership is doing business both inside       Extension of Time to File
and outside of New Jersey, or (2) 100% of the                  If an extension is obtained for filing Federal Form 1065, then
partnership’s business is carried on outside of New            an automatic extension is granted for submitting your Form
Jersey.                                                        NJ-1065. A copy of your application for Federal extension,
•   A Schedule J “Corporation Allocation Schedule” for tax         Federal Form 7004, must be filed with your New Jersey
remittance purposes, if you are not a “qualified               return. Check the box labeled “Application for Federal
investment partnership”, “investment club”, or that is         Extension is attached” at the top of Form NJ-1065.
not listed on a United States national stock exchange,         If you did not obtain a Federal extension and you need more
but you have a nonresident noncorporate partner or a           time to file your New Jersey Form NJ-1065, Federal Form
nonresident corporate partner. Schedule J is not               7004 must be submitted as your request to New Jersey on or
required for a partnership that meets hedge fund status,       before the original due date of the return.
if its only nonresident partners are individuals, estates or
trusts.                                                        In addition, any partnership that has a filing fee or tax due
must file Form PART-200-T, &quot;Partnership Tentative Return
•   Schedule J “Corporation Allocation Schedule” is                and Application for Extension of Time to File&quot;. The
required if the partnership includes nonresident partners      applicable payment must accompany this form. Form PART-
who do not have physical nexus to New Jersey and the           200-T must be postmarked on or before the original due date
partnership wishes to allocate the filing fee.                 for the return.
•   Worksheet GIT-DEP “Gross Income Tax Depreciation
Adjustment Worksheet” if applicable.                           If you file Form PART-200-T “Partnership Tentative Return
and Application for Extension of Time to File,” you must also
•   Schedule B “Sheltered Workshop Tax Credit” if                  file Form PART-100 “Partnership Return Voucher” when you
applicable.                                                    file Form NJ-1065.
•    Schedule L “Complete Liquidation” if applicable.
Partnerships are not to file Form CBT-150 “Corporation
The Division may require that the complete Federal Form             Business Tax Statement of Estimated Tax.” Form CBT-150 is
1065 including all schedules and supporting attachments be          a Corporation Business Tax form, not a Partnership Form.
submitted during the course of an audit.
An extension of time to file Form NJ-1065 does not extend
If at any time during the course of an audit the Division deems     the time for filing the tax returns of the partners.
it necessary, the partnership must make a Form NJ-1065E
available for all applicable partners.
Form PART-200-T “Partnership Tentative Return and                   Partnerships are required to make installment payments of
Application for Extension of Time to File” or Form PART-            estimated tax. Applicable to privilege periods beginning on or
100 “Partnership Return Voucher” with applicable payment            after January 1, 2007, partnerships that are subject to tax
for filing fee and/or tax due must also be filed.                   payments shall make installment payments of 25% of that tax
on or before the 15th day of each of the fourth month, sixth
When to File                                                        month and ninth month of the privilege period and on or
Returns for calendar year 2007 are due April 15, 2008. Fiscal       before the 15th day of the first month succeeding the close of
year returns are due the 15th day of the fourth month after the     the privilege period.
Any short period return must be filed by the due date of the        Estimated payments must be filed and paid electronically. To
Federal Form 1065. The partnership should use the most              file and pay electronically, visit the Division of Taxation
current form available from the Division of Taxation.               website at http://www.state.nj.us/treasury/taxation
4______________________________________2007 Form 1065 ___________________________________________
Accounting Method                                                    •    Writing to
A partnership’s accounting method(s) used for Form NJ-1065                NJ DIVISION OF TAXATION
shall be the same as the accounting methods(s) used for                   TAXPAYER FORM SERVICES
Federal Form 1065.                                                        PO BOX 269
The 2007 Form NJ-1065 should be used for calendar year               •    Photocopying the needed forms from reproducible
2007, or for a fiscal year, which began in 2007. If filing for a          copies available in most public libraries.
fiscal year or a short tax year, enter at the top of Form           Assistance from a Division representative is available Monday
NJ-1065 the month and day the tax year began, and the               through Friday from 8:30 a.m. to 4:30 p.m. by contacting the
month, day and year that it ended. The partnership’s tax year       Division’s Customer Service Center at 609-292-6400.
for New Jersey income tax purposes must be the same as its
tax year for Federal income tax purposes.                           Electronic Filing Assistance
Electronic filing assistance can be obtained by:
Passive Loss Limitations                                             •    Calling the Alternative Filing Branch at 609-633-1132.
Passive loss limitations do not apply for New Jersey gross
income tax purposes. The full amount of current loss may be          •    Downloading the needed formats from the New Jersey
used to offset income or gain, regardless of Federal passive              Division of Revenue Website at:
loss limitations.
http://www.state.nj.us./treasury/revenue
Determining Gain or Loss on the Sale or                             Amended Return or Federal Change
Disposition of Partnership Assets, Koch Effect                      An amended Form NJ-1065 must be filed if an amended
The partnership in determining gain or loss, for New Jersey         Federal Form 1065 return is filed, or if the Internal Revenue
purposes, on the sale or disposition of partnership asset(s)        Service changes or corrects any item of income, gain or loss
must use the same basis in the asset(s) as used for federal tax     previously reported. The amended New Jersey return shall be
purposes. The New Jersey Supreme Court’s decision in                filed within 30 days of the date the amended Federal Form
Sidney &amp; Dorothy Koch v. Director Division of Taxation does         1065 is filed or, in the case of a Federal audit, within 90 days
not apply to the sale, disposition or liquidation of assets by a    after the final determination of the change. Where an amend-
partnership.                                                        ment to Form NJ-1065 results in a need to amend the
Schedules NJK-1, an amended Schedule NJK-1 must be
Gains or losses incurred by a partnership are passed through        forwarded to the Division of Taxation and to each partner.
to the partners to be reflected on their respective New Jersey
Gross Income Tax will generally report this gain or loss as a
component of their “Distributive share of partnership income”
not an amended Federal Form 1065 was filed for that year.
unless the partnership had a complete liquidation.
To amend your original Form-1065, get a blank Form
Resident taxpayers that sell or dispose of a partnership interest   NJ-1065 for the tax year that is to be amended and check the
may be entitled to a Koch type adjustment, to their federal         “Amended Return” box at the top of the form. Complete the
basis in the partnership, when determining New Jersey gain or       form entering the corrected information and attach an
loss. The gain or loss on the sale or disposal of the               explanation of the changes. Mail amended partnership returns
partnership interest will then be reflected on the taxpayer’s       to:
New Jersey return in the category of income “Net gains or
income from disposition of property”. The sale or disposition       NJ DIVISION OF TAXATION
of a partnership interest is the only time a partner, that is a     REVENUE PROCESSING CENTER
taxpayer for Gross Income Tax purposes, can make Koch type          PO BOX 194
basis adjustments.                                                  TRENTON NJ 08646-0194
Forms and Assistance                                                Penalty and Interest Charges
New Jersey tax forms may be obtained by:                            A penalty of $100 for each month or fraction of a month will
be imposed for a partnership that fails to file electronically
when there are ten (10) or more partners and a late filing
penalty of 5% per month (or fraction of a month) up to a
maximum of 25% of the outstanding tax liability will also be
•    Calling NJ TaxFax at 609-826-4500 from your fax               imposed.
machine’s phone to have forms faxed to you at any time
•    Downloading the needed forms from our Web site at             the partnership is required to file Form NJ-1065, as well as
__________________________________________2007 Form 1065 _______________________________________ 5
Form PART-100 and (1) fails to file the return on time,              security number or federal practitioner tax identification
including any extension, (2) files a return that fails to show all   number. The company or corporation name and Federal
the information required, or (3) fails to file an amended            Employer Identification Number, must be included, if
partnership return within 90 days of the date a final Federal        applicable. The preparer required to sign the partnership
determination or disallowance is issued or within 90 days of         return must sign it by hand; signature stamps or labels are
the date the amended Federal Form 1065 is filed, unless the          not acceptable. If someone prepares the return at no charge,
failure is due to reasonable cause and not due to willful            the paid preparer’s area need not be completed. A tax preparer
neglect.                                                             who fails to sign the return or provide a correct tax
identification number may incur a $25 penalty for each
A penalty of $100 for each month or fraction of a month may
be imposed for failure to file.
A late filing penalty of 5% per month (or fraction of a month)       Composite Return for Qualified
up to a maximum of 25% of the outstanding tax liability when         Electing Nonresident Partners
a return is filed after the due date or extended due date may        A partnership which has New Jersey source income may file a
also be imposed.                                                     composite return (Form NJ-1080C) on behalf of its qualified
nonresident partners who elect to be included in the composite
filing. Tax will be calculated for 2007 at two tax rates: 6.37%
and 8.97% without regard to each partner’s filing status,
Interest will be computed at 3% above the prime rate for every       dependent exemptions, or any deductions. Composite
month or fraction of a month the tax is unpaid, compounded           estimated tax payments should also be made.
annually. At the end of each calendar year, any tax, penalties,      A partner may not participate in the composite return if:
balance on which interest is charged.                                 •    The partner is an estate or trust;
•    The partner is a partnership or corporation;
Fraudulent Returns                                                    •    The partner files on a fiscal year basis;
Any person who willfully fails to file a return, files a              •    The partner is a New Jersey resident during any part of
fraudulent return, or attempts to evade the tax in any manner              the year;
may be liable for a penalty not to exceed $7,500 or                   •    The partner derives income from New Jersey sources
imprisonment for a term between three years and five years, or             other than the income from this or any other composite
both.                                                                      return.
Rounding Off to Whole Dollars                                        Every participating partner must make the election to be part
of the composite return in writing each year. The elections
Money items on the return and schedules may be shown                 must be maintained in the partnership files. When filed, the
in whole dollars (eliminate amounts under 50 cents;                  composite return must include a list of the partners who are
enter amounts over 49 cents as the next higher dollar                participating, as well as a list of those who have not elected, or
amount).                                                             are not qualified, to participate in the composite return. The
Signatures                                                           list must include each partner’s name, address and Federal
Form NJ-1065 is not considered to be a return unless signed,
either by a general partner, limited liability company member        If a composite return is filed, check the box labeled
or, if applicable, a receiver, trustee in bankruptcy, or assignee.   “Composite Return is filed for Nonresident Partners” at the
Anyone who prepares a partnership return for a fee must sign         top of Form NJ-1065.
the return as a “Paid Preparer” and must enter his or her social
6______________________________________2007 Form 1065 ___________________________________________
Reporting Period                                                   Federal Partnership Income (Lines 1 – 11)
If you are reporting for a period other than calendar year
2007, enter the beginning and ending dates of your fiscal year.    Note: Tiered Partnerships must first complete Schedule A
and Partnerships that have had a Complete Liquidation
Partnership Name, Address, Identification                          must complete Schedule L before completing the front of
Enter the exact legal name, trade name, if any, and address of     Form NJ-1065.
the partnership. The legal name is the name in which the
registered alternate name, (d/b/a name) if different from the      Line 1 - Ordinary Income (Loss) from Trade or Business
partnership’s legal name.                                          Activities
Enter on Line 1 the amount of ordinary income or loss derived
Enter the partnership’s Federal Employer Identification            from the partnership’s trade or business activities. This will be
Number (FEIN), principal business activity and date the            the amount reported on Line 1, Schedule K, Federal Form
business was started.                                              1065.
Enter the number of resident partners and the number of non-       Line 2 - Net Income (Loss) from Rental Real Estate
resident or foreign partners in the spaces provided. Each          Activities
partner’s residency status must be determined as of the close      Enter on Line 2 the net income or loss from rental real estate
of the partnership’s tax year.                                     activities (attach a copy of your Federal Form 8825). This will
Check the appropriate boxes to indicate whether the return is      be the amount reported on Line 2, Schedule K, Federal Form
a(n)                                                               1065.
Line 3 - Net Income (Loss) from Other Rental Activities
• Final return; or                                                Enter on Line 3 the net income or loss from other rental
• Amended return.                                                 activities. This will be the amount reported on Line 3c,
Check the appropriate boxes to indicate if                         Schedule K, Federal Form 1065.
• An application for a Federal extension is attached;             Line 4 - Guaranteed Payments to Partners
• Permission has been granted for a substitute method of          Enter on Line 4 the amount of guaranteed payments to
allocation;                                                   partners reported on Line 4, Schedule K, Federal Form 1065.
• Complete Liquidation;
• This is a Qualified Investment Partnership;                     Line 5 - Interest Income
• This partnership is listed on a United States national stock    Enter on Line 5 the amount of interest income reported on
exchange;                                                     Line 5, Schedule K, Federal Form NJ-1065.
• The partnership meets hedge fund status;                        Line 6 - Dividend Income
• This is an Investment Club that is exempt from the filing       Enter on Line 6 the amount of dividend income reported on
fee and the requirement that a partnership make               Line 6, Schedule K, Federal Form 1065.
payments on behalf of its nonresident owners in
accordance with the criteria outlined in the “General         Line 7 - Royalty Income
Instructions;”                                                Enter on Line 7 the royalty income reported on Line 7,
• A composite return is filed for nonresident partners;           Schedule K, Federal Form 1065.
• This is a Tiered Partnership;
Line 8 - Net Gain (Loss) from Disposition of Property
• This is a General Partnership;
Enter on Line 8 the total of the net short-term and long-term
• This is a Limited Partnership;                                  gains and/or losses reported on Lines 8 and 9, Schedule K,
• This is a Limited Liability Company; or                         Federal Form 1065. Attach a copy of Schedule D, Federal
• This is a Limited Liability Partnership.                        Form 1065.
• During the period covered by the return, the partnership
acquired or disposed of directly or indirectly a controlling    Line 9 - Net IRC Section 1231 Gain (Loss)
interest in certain commercial property.              Certain   Enter on Line 9 the net IRC Section 1231 gain or loss reported
commercial property is identified as Class 4A commercial        on Line 10, Schedule K, Federal Form 1065.
property as defined in N.J.A.C. 18:12-2.2.
Line 10 - Other Income (Loss)
on Lines 1 through 9 above. This will include the amount
reported on Line 11, Schedule K, Federal Form 1065.
__________________________________________2007 Form 1065 _______________________________________ 7
If any amount is reported on this line you must attach a           Line 15e - Interest Income from New Jersey Obligations
schedule identifying the income or loss.                           Enter on Line 15e the amount of interest income from New
Line 11 - Tax Exempt Interest Income
income and was included in the amount reported on Lines 6 or
Enter on Line 11, the amount of tax-exempt interest income
reported on Line 18a, Schedule K, Federal Form 1065.
Line 12 - Subtotal                                                 Note: Lines 15d and 15e - Amounts excludable from
Add Lines 1 through 11 above and enter the result on Line 12.      income include interest and dividends on obligations of the
State of New Jersey or any of its political subdivisions and
from tax exempt obligations of the United States
NEW JERSEY ADDITIONS                                               government,       its territories   or     instrumentalities.
Line 13a - Taxes Based on Income                                   Distributions from New Jersey qualified investment funds
Enter on Line 13a the amount of taxes based on income which        are also exempt, as are distributions from other
were deducted to determine ordinary income (loss) on Line 1        investment funds, but only to the extent the distribution is
above.                                                             derived from obligations of the type described at N.J.S.A.
54A:6-14, et seq.
Line 13b - Other Additions - Specify
Enter on Line 13b any other items deducted from or not             Line 15f – Smart Moves for Business Programs Tax
included on Lines 1 through 11 above, which are not                Deduction
excludable under the New Jersey Gross Income Tax Act.              A partnership which has registered with the New Jersey
If an asset has been placed in service since January 1, 2004,      Department of Transportation, has an authorized plan to
refer to Worksheet GIT-DEP. This worksheet is available on         provide commuter transportation benefits, and has incurred
the Division’s web site. Include any net addition adjustment       direct expenditures attributed to such plan, shall be entitled to
from Worksheet GIT-DEP, if applicable, if federal income           reduce total partnership income distributed to its partners. The
included deduction of federal special depreciation allowance       amount of the reduction shall be the lesser of 157 percent of
or IRC Section 179 expense; federal Section 179 recapture          the amount of commuter transportation benefits provided
income; or a gain or loss on disposition of such asset.            pursuant to law or $2,230 for each employee receiving such
Specify each item reported. If the amount reported on Line 12,
Form NJ-1065 included any loss incurred in connection with         Eligible partnerships must obtain and complete New Jersey
the disposition of exempt New Jersey or Federal obligations,       Form 307 in order to determine the amount of the ride share
you must add back the amount of such loss on this line.            deduction. The completed form must be attached when Form
Line13c - Total Additions                                          NJ-1065 is filed.
Add Lines 13a and 13b and enter the result on Line 13c.            Line 15g - Other Subtractions - Specify
Line14 - Subtotal                                                  Enter on Line 15g any other items which are excludable or
Add Lines 12 and 13c and enter the result on Line 14.              deductible from the income included in the subtotal reported
on Line 12 above for New Jersey gross income tax purposes.
NEW JERSEY SUBTRACTIONS                                            Specify each item subtracted.
Line 15a - Net Income (Loss) from Rental Real Estate               Examples of some items that might be reported on this line
Activities - Enter on Line 15a any income or loss that resulted    are:
from rental real estate activities and is included in the amount   • Dividends from exempt Federal and New Jersey
reported on Lines 1 or 2 above                                          obligations described at N.J.S.A. 54A:6-14.
Line 15b - Net Gain (Loss) from Disposition of Real                •   Gains from the sale of exempt Federal and New Jersey
Property Enter on Line 15b any gain or loss that resulted              obligations excludable pursuant to N.J.S.A. 54A:5-1c.
from the sale, exchange or disposition of real property and is     •   The remaining 50% of business meals and entertainment
included in the amount reported on Lines 1, 8 or 9 above.              expenses that are not deductible for Federal purposes.
Line 15c - Guaranteed Payments to Partners                         •   IRC Section 179 expense deductions
Enter on Line 15c the amount of guaranteed payments to             •   If an asset has been placed in service since January 1,
partners reported on Line 4 above.                                     2004, refer to Worksheet GIT-DEP. This worksheet is
available on the Division’s web site. Include any net
Line 15d - Interest Income from Federal Obligations
subtraction adjustment from Worksheet GIT-DEP, if
Enter on Line 15d any interest from Federal obligations that is
applicable, if federal income included deduction of
excludable from New Jersey gross income and was included
federal special depreciation allowance or IRC Section 179
in the amount reported on Lines 5 or 6 above.
8______________________________________2007 Form 1065 ___________________________________________
expense; federal Section 179 recapture income; or a gain       gains, expenses or losses attributable to sources within New
or loss on disposition of such asset.                          Jersey by use of the New Jersey Business Allocation Schedule
•   Pursuant to N.J.S.A. 54A:5-15, for taxable years
books and records of the partnership will disclose to the
beginning after December 31, 2004, enter the New Jersey
Director’s satisfaction a more appropriate method of
allowable IRC Section 199 deduction which must be
allocating such items, the partnership may request from the
calculated on Form 501-GIT, Domestic Production
Director an exception from the use of the New Jersey
Activities Deduction. Form 501-GIT can be found on the
Business Allocation Schedule. Such request shall be made in
Division’s web site.
writing to: CHIEF, INDIVIDUAL TAX AUDIT BRANCH, BUSINESS
ALLOCATION EXEMPTION, PO BOX 288 ,TRENTON NJ 08695-
Note: A partnership is not entitled to a basis adjustment
in the calculating and reporting of partnership gain or loss
from the sale or disposition of partnership assets as was          Your request for exception from the use of the New Jersey
extended to individuals, as in the Koch case, on the sale or       Business Allocation Schedule must set forth the basis of the
disposition of a partnership interest. The partnership             request and the substitute method of allocation requested to be
must always use federal adjusted basis when determining            used in lieu of the New Jersey Business Allocation Schedule.
gain or loss. Only taxpayers as defined pursuant to                The substitute method of allocation may not be utilized prior
N.J.S.A. 54A:1-2. l are entitled to a Koch type adjustment.        to the submission of the partnership’s exception request and
Line 15h - Total Subtractions                                      partnership’s exception request, once approved, shall be made
Total Lines 15a through 15g, and enter the result on Line 15h.     every three years, unless the Director or the partnership
requests a change sooner.
Line 16a - Subtotal
Subtract Line 15h from Line 14 and enter the result on Line
partnership”, “investment club”, or that is not listed on a
United States national stock exchange, but has a nonresident
NEW JERSEY ALLOCATED INCOME                                        noncorporate partner or a nonresident corporate partner must
also complete Schedule J “Corporation Allocation Schedule.”
Line 16b - New Jersey Allocated Adjusted Partnership               Schedule J is not required for a partnership that meets hedge
Income                                                             fund status, if its only nonresident partners are individuals,
Form NJ-NR-A must be completed by every partnership                estates or trusts. Schedule J is to be completed based on the
entity, including those that have met hedge fund status, that is   partnership entity’s information, not the nonresident partner’s
not reporting 100% of its activity to New Jersey or that has       information. The corporation business allocation factor will
not been granted permission to use a substitute method of          be reported on Line 1 of the Partners Directory. Schedule J is
allocation. Failure to file Form NJ-NR-A or to check the box       required if the partnership includes nonresident partners who
that a substitute method of allocation has been granted may        do not have physical nexus to New Jersey and the partnership
result in 100% of your partnership’s income or loss being          wishes to allocate their filing fee.
sourced to New Jersey.
Line 17 – Net Income (Loss) from Rental Real Estate
Enter the business allocation percentage from Line 5, Form         Activities
NJ-NR-A in the box provided on Line 16b. A percentage must         Enter on Line 17, Column A, the amount of net income or loss
be entered unless you have been granted permission to use a        from rental real estate activities that was reported on Line 15a,
substitute method of allocation. If permission has been            above.
granted, leave the box on Line 16b blank and enter the actual
New Jersey source amount. Enter 100% if all partnership            Enter on Line 17, Column B, the portion of the amount
activities are carried on in New Jersey or 0% if all partnership   reported in Column A that was derived from real property
activities are carried on outside New Jersey. Multiply the         physically located in New Jersey.
amount on Line 16a by this percentage and enter the result on      Line 18 - Net Gain (Loss) from Disposition of Real
Line 16b, Column B.                                                Property
Where a partnership’s activity is carried on both within and       Enter on Line 18, Column A, the amount of gain or loss from
outside of New Jersey, the portion of the partnership’s            the disposition of real property reported on Line 15b, above.
income, gains, expenses or losses attributable to sources          Enter on Line 18, Column B, the portion of the amount
within New Jersey shall, except as provided below, be              reported in Column A that was derived from the disposition of
determined by use of the New Jersey Business Allocation            real property physically located in New Jersey.
Where a partnership’s activity is carried on both within and       Line 19 – Net Partnership Income (Loss)
outside of New Jersey and the partnership believes that the        Add Lines 16a, 17 and 18, Column A, and enter the sum on
determination of the portion of the partnership’s income,          Line 19, Column A.
__________________________________________2007 Form 1065 _______________________________________ 9
Add Lines 16b, 17 and 18, Column B, and enter the sum on           Multiply the amount from Line 22c, Column A by the
Line 19, Column B.                                                 business allocation percentage on Line 16b, Form NJ-1065
(above). Enter the result on Line 22c, Column B.
Line 20 - Income (Loss) from Tiered Partnership(s)
Enter on Line 20, Column A, the amount, if any, of income or       If a substitute method of allocation was granted, enter the
loss from other partnerships as reported on Line 13, Column        actual New Jersey source amount.
Line 23 – Net Gain (Loss) From the Disposition of Assets
Enter on Line 20, Column B, the amount, if any, of income or       as a Result of a Complete Liquidation
of Part II, Schedule A, Form NJ-1065.                              Enter on Line 23, Column A, the amount from Line 12,
Line 21 – Partnership Income (Loss)                                Column D of Schedule L.
Enter on Line 23, Column     B, the amount from Line 12,
Column E of Schedule L.
Add Lines 19 and 20, Column B, and enter the sum on Line
21, Column B.                                                      Line 24 - Total Nonresident Noncorporate Partners Share
Line 22a - Guaranteed Payments to Partners                         Enter on Line 24, Column B, the total nonresident
Enter on Line 22a the amount of guaranteed payments to part-       noncorporate partners share of tax reported on Line 2c,
ners reported on Line 15c of Form NJ-1065 (above).                 Column J of the Partners Directory.
Line 22b - Guaranteed Payments to Partners - Pension
Enter on Line 22b the amount of guaranteed payments to             Line 25 - Total Nonresident Corporate Partners Share of
retired partners who are receiving such payments as a result of    Tax
a period of service to the partnership pursuant to a retirement    Enter on Line 25, Column B, the total nonresident corporate
agreement or pension plan.                                         partners share of tax reported on Line 2c, Column K of the
Partners Directory.
and enter the result on Line 22c, Column A.
If you are a “qualified investment partnership,” “investment
PARTNERS DIRECTORY                                                 club”, listed on a United States national stock exchange; or
List the partners in order of their ownership interest in the      meet hedge fund status whose only nonresident partners are
partnership, beginning with the partner who holds the largest      individuals, estates or trusts, enter zero.
Column A: Use the following codes to identify the partner’s
Note:    A partnership that is a “qualified investment            residency status and type:
partnership”, an “investment club”, or that is listed on a
RI  -    New Jersey Resident Individual
United States national stock exchange does not have to
NR -     Nonresident Individual
complete Schedule J “Corporation Allocation Schedule.” A               PI  -    Part Year Resident Individual
partnership that meets hedge fund status and whose only                RP -     New Jersey Resident Partnership
nonresident partners are individuals, estates or trusts does not       NP -     Nonresident Partnership
have to complete Schedule J. All other partnerships that have          NPM -    Nonresident Partnership (see below)
nonresident noncorporate partners or nonresident corporate             RT -     New Jersey Resident Trust
partners must complete Schedule J “Corporation                         NT -     Nonresident Trust
Allocation Schedule” and file it with Form NJ-1065                     RE -     New Jersey Resident Estate
Partnership Return. They must also complete columns H, I, J            NE -     Nonresident Estate
and K on the Partners Directory for each nonresident                   RC -     New Jersey Corporation
noncorporate and nonresident corporate partner.                        FC -     Non-New Jersey Corporation
FCM -    Non-New Jersey Corporation (see below)
Line 1 - Corporation Allocation Factor                                 EFC -    Exempt Foreign Corporation
Enter the allocation factor from Line 5 of Schedule J                  RO -     New Jersey Resident Other
&quot;Corporation Allocation Schedule&quot; on Line 1 of the Partners            NO -     Nonresident Other
Directory.                                                             NOE -    Nonresident Other (see below)
NOM -    Nonresident Other (see below)
10______________________________________2007 Form 1065 ___________________________________________
Codes NPM, FCM and NOM are used to identify nonresident              Column E: Enter each partner’s share of the net gain (loss)
partners that maintain a regular place of business in New            from the disposition of assets as a result of a complete
Jersey other than a statutory office. No tax is required on their    liquidation from Line 6, Column A of their Schedule NJK-1.
behalf or on the behalf of an exempt foreign corporation
Column F: Enter each partner’s share of the net gain (loss)
(EFC) or on a retirement plan approved by the Internal
from the disposition of assets as a result of a complete
Revenue Service (NOE).
liquidation from Line 6, Column B of their Schedule NJK-1.
For codes NPM, FCM, NOM, EFC, and NOE the partnership
must obtain and retain in its files a fully completed and signed     Column G: Enter each partner&#39;s share of Pension income
Form NJ-1065E. The form is valid for one return period and a         from Line 5, Column A of their Schedule NJK-1.
new form must be filed with the partnership for any                  Column H: Enter each nonresident noncorporate (codes NR,
subsequent return periods. If at any time during the course of       NT and NE) partner’s share of total income or loss. No entry
an audit, the Division deems it necessary, the partnership must      is required if the partnership is a “qualified investment
make the form(s) available.                                          partnership”, “investment club” is listed on a United States
Attach a rider to explain the partner’s entity type in detail for    national stock exchange; or if the partnership meets hedge
codes RO, NO and NOM.                                                fund status and has checked the appropriate boxes on the front
of Form NJ-1065.
Column B: Enter each partner’s Social Security Number
(SSN) for individual partners or Federal Employer                    Enter each nonresident corporate (codes NP, FC and NO)
Identification Number (FEIN) for partners which are entities         partner’s share of total income or loss. No entry is required if
other than individuals, as well as each partner’s name and           the partnership is a qualified investment partnership or if it is
address. For individuals, the statute requires that the              listed on a United States national stock exchange and has
address be that of the person’s principal residence. If the          checked the appropriate boxes on the front of Form NJ-1065.
partner is an entity other than an individual, enter the partner’s   Add Lines 1 through 11, plus any “Tax-exempt interest
business name. For corporations, enter the address of                income” included on Line 18 from their Schedule K-1,
commercial domicile.         Enter each partner’s ownership          Federal Form 1065.
percentage as of the close of the taxable year. If a partner
disposed of all or part of an ownership interest during the          Column I: Enter each nonresident partner&#39;s share of New
year, list the partner by the ownership percentage before the        Jersey income. Multiply the amount from Column H by the
disposition.                                                         corporation allocation factor on Line 1 (above). If the amount
in Column H is a loss, do not make an entry in Column I.
Enter a &quot;Y&quot; if this is the final Schedule NJK-1 for the partner.
Column J: Enter each nonresident noncorporate partner’s
Note: The amounts listed in Columns C and D represent the            (codes NR, NT and NE) share of tax. Multiply the amount
distributive share of partnership income (loss) and the              from Column I by 6.37%.
amounts listed in Columns E an F represent the net gain (loss)       If an amended return is filed and the result of multiplying the
from disposition of assets as a result of a complete liquidation     amount from Column I by 6.37% is less than the amount
that the partners who are subject to Gross Income Tax are            reported on the original Partners Directory, report the amount
required to report on their tax returns. Columns C and D and         listed on the original Partners Directory. Do not report the
Columns E and F reflect the adjustments allowed for Gross            lesser amount, since the partner is entitled to claim credit for
Income Tax purposes that are reported on page 1 of Form NJ-          the originally reported amount.
1065. The amounts listed in Columns H and I represent the
nonresident partner’s share of income for which the                  Column K: Enter each nonresident corporate partner’s
partnership is required to remit tax. Columns H and I do not         (codes NP, FC and NO) share of tax. Multiply the amount
reflect any adjustments. The combined amounts reported in            from Column I by 9.0%.
Columns C and D and in Columns E and F may differ from               If an amended return is filed and the result of multiplying the
the amounts reported in Columns H and I.                             amount from Column I by 9.0% is less than the amount
Column C: Enter each partner’s Distributive Share of                 reported on the original Partners Directory, report the amount
Partnership Income or Loss from Line 4, Column A of their            listed on the original Partners Directory. Do not report the
Schedule NJK-1.                                                      lesser amount, since the partner is entitled to claim credit for
the originally reported amount.
Column D: Enter each partner’s Distributive Share of
Partnership Income or Loss from Line 4, Column B of their            Line 2a – Total This Page
Schedule NJK-1.                                                      Total all nonresident partners’ share of tax from columns J
__________________________________________2007 Form 1065 _______________________________________ 11
Line 2b – Total From ________ Additional Pages Attached             company or corporation name and Federal Employer
Enter the total number of additional pages attached on the line     Identification Number, if applicable. A tax preparer who fails
provided. Enter the sum of the totals for columns J and K           to sign the return or provide a tax identification number may
from each additional page attached.                                 incur a penalty of $25 for each omission.
Line 2c – Total Tax
Add lines 2a and 2b from Columns J and K and enter the              Note: A partnership that is not required to remit a
results on Line 2c. Carry the total from Column J to Line 24        payment of tax on behalf of its nonresident noncorporate
and the total from Column K to Line 25 on the front of Form         or nonresident corporate partners may still be required to
NJ-1065.                                                            pay a filing fee. Refer to the instructions for the Filing Fee
Schedule that is part of both Forms PART-200-T
Signature                                                           “Partnership Tentative Return and Application for
The return must be signed and dated by a general partner or         Extension of Time to File” and PART-100 “Partnership
limited liability company member.                                   Return Voucher” to see if you are required to make a
Anyone who prepares a return for a fee must sign the return as      payment.
or federal practitioner tax identification number. Include the
the partner as well. If the partner is a person, enter his or her
Social Security Number. If the partner is an Individual
gross income tax on their share of the partnership’s income,
Retirement Arrangement (IRA), enter the identification
whether or not the income is actually distributed. Partners who
number of the custodian of the IRA, not the Social Security
reside in New Jersey are taxed on their share of the
partnership’s income, regardless of the source of the income.
Nonresident partners are also subject to New Jersey gross           If a husband and wife each had an interest in the
income tax on their share of the partnership’s income, but          partnership, prepare a separate Schedule NJK-1 for each
only to the extent such income is allocated to New Jersey.          spouse. If a husband and wife held an interest together as
If the partnership has met “hedge fund” status and has              one partner, prepare one Schedule NJK-1.
checked the “hedge fund” box listed on the partner’s Schedule       Classification of Partner
NJK-1; the nonresident individual, trust or estate partner is not   Use the codes shown above in the instructions for Column A
required to report the New Jersey source amount income from         of the partner’s directory.
Column B of their Schedule NJK-1 on their nonresident gross
income tax return.                                                  Date Partner’s Interest in Partnership Began
Enter the month, day, and year the partner obtained an interest
Schedule NJK-1 provides each partner with information               in this partnership.
Partner’s Profit, Loss, and Capital Sharing Percentages
Enter in Column (ii), the appropriate percentages as of the end
of the partnership’s year. However, if a partner’s interest
Partners must be furnished with a copy of their Schedule NJK-       terminated during the year, enter in Column (i) the
1 on or before the due date of the partnership return (Form         percentages that existed immediately before the termination.
NJ-1065). If a partnership interest is held by a nominee on         When the profit or loss sharing percentage has changed during
behalf of another person, the partnership is required to furnish    the year, show the percentage before the change in Column (i)
Schedule NJK-1 to the nominee.                                      and the end-of-year percentage in Column (ii). If there are
multiple changes on the profit and loss sharing percentage
A copy of all NJK-1(s) must be retained by the partnership as       during the year, attach a statement giving the date and
part of the partnership’s records.                                  percentage before each change.
“Capital Ownership” means the portion of the capital that the
PART I                                                              partner would receive if the partnership was liquidated at the
GENERAL INFORMATION                                                 end of the year and the undivided interests in the partnership’s
Name and Address                                                    assets and liabilities were distributed.
12 ————————————————— 2007 Form NJ-1065 ———-—————-——————————
PART II                                                           made must be receiving the payment as a result of a period of
INCOME INFORMATION                                                service to the partnership pursuant to a retirement agreement
or pension plan.
The amounts reported in Column A, Schedule NJK-1,
represent the partner’s share of the partnership’s income, gain   Make no entry on Line 5, Column B. Pension income to
or loss from all sources as reported in Column A, Form NJ-        nonresidents is not subject to New Jersey gross income tax.
1065. The partner’s share shall be determined by the
partnership agreement in the same manner as the partner’s         Line 6 – Net Gain (Loss) from the Disposition of Assets as
distributive share of partnership income is determined for        a Result of a Complete Liquidation
Federal income tax purposes. Column A, Schedule NJK-1             Enter on Line 6, Column A, the partner’s share of the net gain
must be completed for every partner, regardless of residency.     (loss) from the disposition of assets as a result of a complete
liquidation reported on Line 23, Column A, Form NJ-1065.
The amounts reported in Column B, Schedule NJK-1
represent the partner’s share of the partnership’s income, gain   Enter on Line 6, Column B, the partner’s share of the net gain
or loss allocated to New Jersey as reported in Column B,          (loss) from the disposition of assets as a result of a complete
Form NJ-1065. Column B, Schedule NJK-1 should be                  liquidation reported on Line 23, Column B, Form NJ-1065.
completed for all partners.
Line 1 - Partnership Income (Loss)                                PART III
Enter on Line 1, Column A, the partner’s share of partnership     PARTNER&#39;S INFORMATION
income or loss reported on Line 21, Column A, Form NJ-
1065.                                                             Line 1 – Nonresident Partner’s Share of New Jersey Tax
Enter on Line 1, the partner&#39;s share of New Jersey tax reported
in either Column J or Column K of the Partners Directory.
1065.                                                             Enter in the appropriate block the amount of tax payment
made on behalf of the partner for the tax year. The total of the
Line 2 – Net Guaranteed Payments
blocks cannot exceed the amount reported on Line 1, Part III.
Enter on Line 2, Column A, the partner’s amount of net
guaranteed payments reported on Line 22c, Column A, Form          If an amended Schedule NJK-1 is filed, do not report less
NJ-1065.                                                          than the amount reported on the original Schedule NJK-1.
Line 2 – Partner’s HEZ Deduction
multiplied by the business allocation percentage from Line
16b, Form NJ-1065.                                                If the partnership is a qualified primary care medical or dental
practice located in or within 5 miles of a Health Enterprise
Line 3 - Partner’s 401(k) Contribution                            Zone (HEZ) the partnership must determine if the partners are
Enter on Line 3, Column A, the amount of the partner’s            entitled to an HEZ deduction and the amount. The partner’s
contribution to a 401(k) plan. Contributions in excess of         deduction is entered on the partner’s Schedule NJK-1 and
Federal limits and taxable for Federal income tax purposes        deducted on the partner’s Gross Income Tax return. Refer to
may not be included on this line.                                 the Division’s web site, www.state.nj.us/treasury/taxation, for
Enter on Line 3, Column B, the amount from Column A               qualification and calculation information.
multiplied by the business allocation percentage from Line        Enter the partner’s HEZ deduction.
16b, Form NJ-1065.
Line 3 – Partner’s Sheltered Workshop Tax Credit
Line 4 – Distributive Share of Partnership Income (Loss)
Add Lines 1 and 2, Column A, then subtract Line 3, Column         Enter on Line 3 the partner’s share of the Available Sheltered
A from this result. Enter the remainder on Line 4, Column A.      Workshop Tax Credit from Line 8 of the Partnership’s
“Sheltered Workshop Tax Credit” schedule.
B from this result. Enter this amount on Line 4, Column B.        PART IV
Line 5 – Pension                                                  SUPPLEMENTAL INFORMATION
Enter on Line 5, Column A, the partner’s share of guaranteed      Attach a separate schedule to provide any detailed information
payments – pension reported on Line 22b, Column A, Form           affecting the partner’s share of income.
NJ-1065. The partner to whom the guaranteed payment was
__________________________________________2007 Form 1065 _______________________________________ 13
14 ————————————————— 2007 Form NJ-1065 ———-—————-——————————
sources.                                                         Line 3a - In New Jersey
Enter on Line 3a the total of wages, salaries and other
Line 1 - Average Values of Property                              personal compensation paid to employees in connection with
by the return. Compensation is paid in connection with
Enter on Line 1a the average values of the business property
operations carried on in New Jersey if work is based in an
in New Jersey from Line 4, Column B, Section 2.                  office or other place of business located in New Jersey.
sales agents, etc.
from everywhere (both inside and outside New Jersey) from
both inside and outside New Jersey during the period covered
Divide the amount on Line 1a by the amount on Line 1b. The
by the return. Do not include payments to independent
result will be 100% or less. Enter the result on Line 1c.
the states of New Jersey, New York and Pennsylvania, all                  Part IV, Form NJ-1040NR
Line 2a.                                                                  Schedule F, Form NJ-1041
Line 2b - Everywhere                                             If one of the fractions (property, receipts or payroll) is
__________________________________________2007 Form 1065 _______________________________________ 15
INSTRUCTIONS FOR FORM PART-100
Line 1. Filing Fee
Enter the amount from Line 4 of the Filing Fee Schedule located on the back of Form PART-100. Do not enter
more than $250,000. If you have less than three owners or if you do not have income or loss derived from NJ
sources, enter zero.
A partnership that is exempt from being required to remit a payment of tax on behalf of its nonresident partners may
still have income derived from New Jersey sources and accordingly be subject to the filing fee.
Line 2. Installment Payment
Multiply the amount reported on Line 1 by 50% and enter the result on Line 2. If you have checked the box on
Form NJ-1065 indicating that the return is a “Final Return”, enter zero.
Line 3. Nonresident Noncorporate Partner Tax
Enter the amount reported on Page 1, Line 24, Column B of Form NJ-1065. If this is an “Amended” Form PART-
100, check the box. Do not report less than the amount reported on your original Form PART-100.
Line 4. Nonresident Corporate Partner Tax
Enter the amount reported on Page 1, Line 25, Column B of Form NJ-1065. If this is an “Amended” Form PART-
Line 5. Total Fee and Tax
Add Lines 1 through 4 and enter the result on Line 5.
Line 6. Penalty for Underpayment of Estimated Tax
Enter the amount from Line 18 of PART-160 (be sure to attach Form PART-160)
Line 7 Total Due
Line 8 Tiered Partnership Payment
Enter the amount reported on Line 1 of the Tiered Partnership Payment Schedule located on the back of PART-100.
Line 9 Installment Payment from 2006
Enter the amount from Line 2 of the 2006 PART-100.
Line 10 Estimated Payments/Credit from 2006
Enter the total amount of estimated payments made Also, enter your credit forward request from Line 9 of your
2006 Form PART-100.
Line 11. Payment from Form PART-200-T
Enter the payment made from Line 8 of your 2007 Form PART-200-T.
Line 12 Total Balance Due
Subtract lines 8-11 from Line 7 and enter any balance due here. Make check payable to “State of New Jersey-
PART and remit with completed Form PART-100.
Line 13 Overpayment
If after subtracting Lines 8-11 from Line 7 there is an overpayment enter the amount of overpayment here.
Line 14 Credit to 2008
Enter the amount of the overpayment shown on Line 13 that you want forwarded to your 2008 Form PART-100.
Line 15 Refund
Enter the amount of the overpayment shown on Line 13 that you want refunded.
Note:    Penalties and Interest may be assessed for late filing of the return and late payment of the tax. Partnership fees are
INSTRUCTIONS FOR FILING FEE SCHEDULE
If you have more than two owners and you have income or loss derived from NJ sources, complete the Filing Fee Schedule located on
the back of Form PART-100.
List the applicable number of each type of owner in your entity on the lines provided. The number of owners will generally be equal
to the number of Schedule NJK-1s issued.
Enter the allocation factor from Line 5 of Schedule J “Corporation Allocation Schedule” into the box on Line 3.
The $150.00 per owner filing fee does not apply to entities that meet the definition of an investment club.
A partnership that is exempt from being required to remit a payment of tax on behalf of its nonresident partners may still have income
derived from New Jersey sources and accordingly be subject to the filing fee.
16      ————————————————— 2007 Form NJ-1065 ————————————————
INSTRUCTIONS FOR FORM PART-200-T
Where a tentative return and tax payment are timely and properly filed, the Division of Taxation will grant an automatic extension of
six (6) months for the filing of Form NJ-1065 and Form PART-100. Form 200-T must be postmarked on or before the original due
date of the NJ-1065. The maximum amount of time an extension can be granted for is six (6) months. Extensions longer than six (6)
months will not be granted. If you file Form PART-200-T, you must also file Form PART-100 “Partnership Return Voucher” when
you file Form NJ-1065.
Enter the amount from Line 4 of the Filing Fee Schedule located on the back of Form PART-200-T. Do not enter more than
$250,000. If you have less than three owners or if you do not have income or loss derived from NJ sources, enter zero.
Multiply the amount reported on Line 1 by 50% and enter the result on Line 2. If you will be checking the box on Form NJ-1065
indicating that the return is a “Final Return”, enter zero.
Line 3. Tentative Nonresident Noncorporate Partner Tax
Enter the amount you expect to report on Page 1, Line 24, Column B of Form NJ-1065.
Line 4. Tentative Nonresident Corporate Partner Tax
Enter the amount you expect to report on Page 1, Line 25, Column B of Form NJ-1065.
Line 6. Tiered Partnership Payment
Enter the amount reported on Line 1 of the Tiered Partnership Payment Schedule located on the back of Form PART-200T.
Line 7. Payment/Credit
Enter the amount of your installment payment from Line 2 and your credit forward request from Line 9 of your 2006 Form PART-
100, as well as your estimated payments..
Line 8. Total Balance Due
Subtract Lines 6 and 7 from Line 5 and enter the result on Line 8. Make check payable to State of New Jersey--PART and remit with
completed Form PART-200-T.
Note:    Penalties and Interest may be assessed for underestimation of tax.
the back of Form PART-200-T.
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