Instructions For Nj-1065 - Partnership Return And New Jersey Partnership Njk-1 (Page 12 of 17) in pdf

12 ———————————————— 2013 Form NJ-1065 ———-—————-——————————

PART II

NJ-1065. The partner to whom the guaranteed payment was

made must be receiving the payment as a result of a period of

service to the partnership pursuant to a retirement agreement

INCOME INFORMATION

or pension plan.

The amounts reported in Column A, Schedule NJK-1,

Make no entry on Line 5, Column B. Pension income to

represent the partner’s share of the partnership’s income, gain

nonresidents is not subject to New Jersey gross income tax.

or loss from all sources as reported in Column A, Form NJ-

1065. The partner’s share shall be determined by the

Line 6 – Net Gain (Loss) from the Disposition of Assets as

partnership agreement in the same manner as the partner’s

a Result of a Complete Liquidation

distributive share of partnership income is determined for

Enter on Line 6, Column A, the partner’s share of the net gain

Federal income tax purposes. Column A, Schedule NJK-1

(loss) from the disposition of assets as a result of a complete

must be completed for every partner, regardless of residency.

liquidation reported on Line 23, Column A, Form NJ-1065.

The amounts reported in Column B, Schedule NJK-1

Enter on Line 6, Column B, the partner’s share of the net gain

represent the partner’s share of the partnership’s income, gain

(loss) from the disposition of assets as a result of a complete

or loss allocated to New Jersey as reported in Column B,

liquidation reported on Line 23, Column B, Form NJ-1065.

Form NJ-1065. Column B, Schedule NJK-1 should be

completed for all partners.

PART III

Line 1 - Partnership Income (Loss)

Enter on Line 1, Column A, the partner’s share of partnership

PARTNER'S INFORMATION

income or loss reported on Line 21, Column A, Form NJ-

Line 1 – Nonresident Partner’s Share of New Jersey Tax

1065.

Enter on Line 1, the partner's share of New Jersey tax reported

Enter on Line 1, Column B, the partner’s share of partnership

in either Column J or Column K of the Partners Directory.

income or loss reported on Line 21, Column B, Form NJ-

If an amended Schedule NJK-1 is filed, do not report less

1065.

than the amount reported on the original Schedule NJK-1.

Line 2 – Net Guaranteed Payments

Enter on Line 2, Column A, the partner’s amount of net

Line 2 – Partner’s HEZ Deduction

guaranteed payments reported on Line 22c, Column A, Form

If the partnership is a qualified primary care medical or dental

NJ-1065.

practice located in or within 5 miles of a Health Enterprise

Zone (HEZ) the partnership must determine if the partners are

Enter on Line 2, Column B, the amount from Column A

entitled to an HEZ deduction and the amount. The partner’s

multiplied by the business allocation percentage from Line

16b, Form NJ-1065.

deduction is entered on the partner’s Schedule NJK-1 and

deducted on the partner’s Gross Income Tax return. Refer to

Line 3 - Partner’s 401(k) Contribution

the Division’s web site, , for

Enter on Line 3, Column A, the amount of the partner’s

qualification and calculation information.

contribution to a 401(k) plan. Contributions in excess of

Federal limits and taxable for Federal income tax purposes

Enter the partner’s HEZ deduction.

may not be included on this line.

Line 3 – Partner’s Sheltered Workshop Tax Credit

Enter on Line 3, Column B, the amount from Column A

Enter on Line 3 the partner’s share of the Available Sheltered

multiplied by the business allocation percentage from Line

Workshop Tax Credit from Line 8 of the Partnership’s

16b, Form NJ-1065.

“Sheltered Workshop Tax Credit” schedule.

Line 4 – Distributive Share of Partnership Income (Loss)

PART IV

Add Lines 1 and 2, Column A, then subtract Line 3, Column

SUPPLEMENTAL INFORMATION

A from this result. Enter the remainder on Line 4, Column A.

Add Lines 1 and 2, Column B, then subtract Line 3, Column

Attach a separate schedule to provide any detailed information

B from this result. Enter this amount on Line 4, Column B.

affecting the partner’s share of income, such as IRC §754

adjustments.

Line 5 – Pension

Enter on Line 5, Column A, the partner’s share of guaranteed

payments – pension reported on Line 22b, Column A, Form

Instructions For Nj-1065 - Partnership Return And New Jersey Partnership Njk-1 Page 12

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