Instructions for Form 1041 - Schedule G
Schedule G. If none of the income in a particular category is from
New Jersey sources, enter “0” on the appropriate line on
SCHEDULE G - New Jersey Income of Nonresident
Estates and Trusts
Income or losses which a nonresident estate or trust receives
from a business entity (i.e., sole proprietorship, partnership, LLP
The New Jersey income tax liability of a nonresident estate or
or LLC) located in New Jersey will not be deemed to be derived
trust is based on the percentage of its total income which comes
from New Jersey sources if the business entity’s sole activity is
from New Jersey sources. Tax is computed on income from all
the purchase, holding or sale of intangible personal property,
sources, and then prorated according to the ratio that New Jersey
such as commodities or securities, and such intangible personal
income bears to income from both inside and outside New
property is not held for sale to customers. You must however,
include such income on the appropriate line of Form NJ-1041.
Nonresident estates must report their income from all sources
A nonresident estate or trust which carries on business both
(both inside and outside New Jersey) on Lines 6–13 of
inside and outside New Jersey must allocate business income to
Form NJ-1041 and their income from New Jersey sources on
determine the amount of income from New Jersey sources.
Lines 1–8 of Schedule G. These figures cannot be copied from
Complete and attach a separate Business Allocation Schedule
figures reported on the Federal return.
(Form NJ-NR-A) for each business required to allocate. Also
complete Schedule F on Page 2 of Form NJ-1041.
Complete Schedule G before completing Line 16a of Form
Line 9. Enter on Line 9 the total of Lines 1–8.
If you complete Schedule G, be sure to attach it to your
Line 10. Enter on Line 10 the amount from Schedule D,
completed Form NJ-1041.
Line 41B - total New Jersey source income distributed to
Lines 1–8. For each of the various categories of income, enter
the portion of the estate’s or trust’s income received during the
Line 11. Subtract Line 10 from Line 9. Enter the result here and
taxable year that comes from New Jersey sources.
on Page 1, Line 16a.
For every entry on Lines 6–13 of Form
NJ-1041, there should be an entry on the corresponding line on