Monday, January 16, 2012

Guidance on New Jersey Alternative Business Loss Deduction Provided

For tax years beginning after 2011, the legislation provides a deduction that uses a calculation that consolidates business income and/or loss and allows taxpayers to carry forward unutilized losses. A net loss in one category of personal income still cannot be used to offset income in another category of personal income.

The four categories of business income included in the alternative business calculation deduction are:

(1) net profits from business

(2) net gains or net income derived from or in the form of rents, royalties, patents, and copyrights (3) distributive share of partnership income

(4) net pro rata share of S corporation income

To calculate the alternative business calculation deduction ah…use tax prep software. Or see examples in the below link.

No comments:

Post a Comment