Instructions For Form 1041 - Schedule G (Page 2 of 2) in pdf

Form NJ-NR-A

If business activities are carried on both inside and outside New Jersey, business income may be allocated

to determine the amount of income from New Jersey sources. Carrying on business activities outside New

Jersey means maintaining, operating or occupying a regular place of business outside New Jersey, such as

an office, shop, store, warehouse, factory, agency or other place where the business’s affairs are system-

atically and regularly conducted.

The business may not allocate income if it has only an occasional or isolated business transaction outside

the State. Likewise, if the business has no regular place of business outside New Jersey, it may not allocate

income, even though its representatives travel outside the State for the purposes of performing duties

connected with the trade or business, and make sales or perform services for persons or corporations

located outside the State.

Be sure that Form NJ -NR-A is firmly attached to Form NJ -1040NR, NJ -1041, or NJ -1065, and that the name

and address on the Business Allocation Schedule agree exactly with the name and address on the return to

which it is attached.

Section 1 – Business Locations

Use Section 1 to list the locations where the business activities are conducted. In Columns (a) and (b) list

the exact locations at which the business carries on activities both inside and outside the State. List all

business locations. In Column (c) describe the places listed in Columns (a) and (b) (i.e., branch office,

agency, factory, warehouse, etc.). In Column (d) indicate whether the business rents or owns each location

listed. Attach additional sheets if necessary.

Section 2 - Average Values

Use Section 2 to determine the average values of your business assets. The average value of property

owned is determined by adding (1) the book value of the property at the beginning of the taxable year and

(2) the book value of the property at the end of the taxable year and dividing the sum by two.

The average value of property rented or leased is valued at eight times the annual rent. Rent includes any

amounts paid in addition to, or accrued in lieu of rent for the period covered by the return (such as interest,

taxes, insurance and repairs).

Line 1 - Real Property Owned

OLUMN

Enter on Line 1, Column A, the average value of the real property listed in Section 1 that was owned for the

period covered by the return. Include property located both inside and outside New Jersey.

OLUMN

Enter on Line 1, Column B, the average value of the real property listed in Section 1 that was owned in the

State. Include only property located in New Jersey.

Line 2 - Real and Tangible Property Rented

Instructions For Form 1041 - Schedule G Page 2