If my scorp has a net loss but within that net loss is income from new jersey sources, do I have to bifurcate that on the NJ tax return? I am asking bc New Jersey only taxes income, not losses. I’m not a state expert

like
Posting as :
works at
You are currently posting as works at

No. You calculate the taxable base...which sounds like you say is a loss. After that's you apportion income/loss to the state using a single sales factor (new law change).

The answer depends on whether the NJ activity is part of the same business. Say your S corp is a retail clothing store in NY but also owns 20% of a partnership that owns car washes in NJ. The two businesses are unrelated and you must report the NJ income separately. But if the NJ partnership is a retail store, say hardware, and you invested in it to help your friends and provide advice based on your experience, you can net the two together.

Of course, if this is just one business and you’re tracking profits by customer, you should net them

That's not correct and these are not the facts that OP stated.

In your example (which are not consistent with OP's question), if the partnership and S Corporation are nonunitary, you allocate the partnership income or loss to the S corporation. If the partnership has a net loss and the S Corp (independent of the partnership interest) has positive income, you get to net the loss against the post-apportioned S Corp income.

Whether two pass through entities are unitary or not, you still net everything together at the upper tier level. You flow up apportion for unitary businesses but you allocate for non-untiary. NJ changed the law last year and the 2023 returns now report things this way.


OP's facts are:

1) s corp has profit in NJ.
2) s corp has losses outside NJ.
3) s corp's net income altogether is a net loss.
4) question is whether s corp needs to pay tax in NJ since the NJ only activity is a profit.
5) the answer is no.

Related Posts

So i forgot to move my 401k over from my old job a few years ago. Never done it since because I didn’t want to incur penalties. Moving job again, can I do it now?

like

Investor’s Business Daily: worthwhile?

like

Looking to transition to a new career, possibly to SWE. I have a physical science background with some student loan debt. Before I dive into more student loans, I wanted to check out some Software Engineering boot camps....

Any recommendations? What's your personal experience? Are they worth paying, or is college the way?

likeupliftinghelpful

Thinking of starting and Only Fans account for extra side money. Don’t know what it would be yet though. Sounds wild but my salary barely covers the cost of living and I’ve been living with school debt. Anyone have one on the side? Serious answers only please!

likesmart

Do we have tax calculator in tcs

like

Couples without kids, how do you justify buying a house and paying school taxes? Almost all of the good residential areas are with a high school tax. Just curious if childless couples can ever buy and live in nice areas or rent forever

likehelpful
like

Which demat accounts can a Citi employee hold ?
Is only Kotak securities allowed ? Are there any exceptions ?

like

Does EY let you keep Amex rewards points?

like

Why is there a culture of young realtors only? As a 40 year old realtor, I am far from retiring! As long as properties exist, I'll be here

like

Are commercial properties getting inflated like residential? Thinking of getting into commercial to extra income.

Angel investors : What returns do you expect when investing? Also what’s your range of investment?

like

Hi IBM sharks,
My friend received bluepoints, what's the conversion rate to rupees? Can we redeem it as cash components?@ IBM

like

About to apply for an apt that’s asking for a $2000 good faith deposit. I’m still a little undecided about the apartment (I have another option in Jersey) Do I wait it out or just go ahead & apply? Honestly don’t know if I’ll feel 100% sure any time soon. First time living in NY & first time renting post college😭😭

like
like

Who wants to start a DAO and buy time shares (literally lmao) in a watch.

Can rotate throughout the year 😂

likeuplifting

Anyone use Wealthfront as an investment platform? Likes, dislikes, thoughts?

Which alt coin should I buy in this blood bath outside of ETH, LTC, XRP and BCH?

Buying a condo with an HOA - what’s the average reserve % you’ve seen? My HOA is 23% funded, and recently raised dues.

like

Thinking of moving my whole crypto portfolio into BTC. Is this dumb?

like

More Posts

I have 7 years of work exp in Data analytics & Data engineering team. Right now managing a team of 12. Will PMP certification help in career growth ? Needed some view points.

Been with tech consulting for 5 years but no growth - total YOE 11 yrs - in the area of risk and regulatory consulting and implementation - not too many quality calls during this pandemic- seeking inputs from forum fishes and if anyone is interested in referring to Industry or consulting firms.. thanks !

Salary range for lead analyst (band 28) non tech?

like

Hello Fishes, can I do DSA from JavaScript?

Has anybody switched from Deloitte India to Usi?
How was the procedure? Did you quit the India firm and then join Usi or is an internal switch possible?

like

How do the titles/levels work at Meta within Business Planning & Operations (BP&O) / Meta Business Group (MBG)? i.e. Is a BP&O Lead above or below a BP&O Program Manager and what IC levels do they correspond to?

like

For those that have been in awhile and looking closely at retirement. Are you switching careers or if you did how did it go? What advice would you give someone four years out from retirement?

What is your typical class size for your shop class? Do you have a maximum?

like

Hi sharks , looking for referral for the role of Test engineer/SDET (4 years ) in Bangalore/chennai/coimbatore location.

like

In many ways, I feel the same as before I enrolled. I don't understand how because I've lived so many things since then, but at the core, I feel like it hasn't affected me. It's weird. Am I missing something?

like

Any Ramboll fishes here!!
I need your help for a referral. I have the job I'd. Can anyone please help

like

I’m not having harmful thoughts but I’m so sad and scared I wake up in the night crying. It makes me tired and I can barely focus. Ideas?

Killer high level recruiters in LA? Thanks in advance friends!

Do you all see a compelling future in your tax career? I’ll go first, I don’t see a compelling future working for a large PA firm in the long run because you have to work more as you move up. However, I do see a compelling future by using my knowledge and skills to open my own firm/business and work less hours as long as I make enough money which is $75k, or if I do work long hours, it’s because I want to.

like

20 lpa for 3yoe capgemini is it safe ?

like

How bad is it to blow your first LSAT?

like
like

Hi All - I am a strategy consultant with 5.5 years of work experience. Can someone please help refer me to a role outside the MBBs and Big 4s?

like

Other than a client project, what's a good way to get trained up on cloud security?

like

Does anyone know what companies have good finance/accounting development rotational programs? I am hoping to find something in the early career & new grad sectors. I have been looking at Dell, JLL, and Whirlpool.

like

Additional Posts in SALT - State and Local Tax

If the layoff is not necessarily to go through performance improvement plan, then is there a standard dashboard look to evaluate ourselves about how close we are at?

likehelpful

MTC Proposes Removing Online Sales solicitation from 86-272 protection. Thoughts?

like

Hey Salt peeps. I’m curious what kinds of practices you specialize in and how long you’ve been doing it? Would you specialize in something different in tax if you could turn back the clock?

helpfullike

Any big four hiring for indirect tax ?

Hi All, how much should I expect to pay for someone to do my taxes for me? (Ball park)
- fbar
- state
- Federal

Also I moved out from MA in February so not sure if I'd also still need to file in MA?

like

Los Angeles Area comp for 2nd year asset management?

Currently making $85k with a 7.5k signing bonus. Wondering if I’m being underpaid in my role. Ive tried probing my colleagues but no dice.

Maxed out Roth IRA contributions when I wasn't eligible for 2021 (got a salary bump mid year). Do I need to recharacterize? It's a very small account that's been open for only two years. That's the only IRA account I own. Do I need to open a traditional IRA and roll over 6k + realized gains into that account and keep the Roth IRA. So confused how this works and got conflicting information from Merrill.

like

I was paid a retention bonus last year which I have to return - couple of questions: Will I get a corrected W2 ? If yes, how much time does it generally to generate a corrected W2? Should I wait for corrected W2 to file the return ? (with the current comp - I owe taxes however with the W2C - I will probably not..) thoughts??

like

When a consolidated unitary group acquires a TX Corp, does TX follow Sec. 382 and Sec. 383 and apply a limitation on the utilization of the acquired entity's TX R&D credits following the acquisition?

How does NY (or any other states that tax income) enforce taxes on nonresidents? Assume the taxpayer does not file state return with NY and does not have NY on W2.

Seems NY would have no way of targeting said taxpayer for audit. Thoughts?

like

Anyone works at KPMG MN office in the SALT practice and can let me know how it is?

like

How is leaseholds taxed in Texas for personal property?

like

My 2022 w-2 has states tax paid in California. But I was living in Illinois. I have paid more taxes per my w2. Do I need to file state tax for both IL and CA?

like

Anyone looking for a senior SALT position , would be in our south florida practice. West Palm Beach, Fort Lauderdale or Miami office

Why is it when I owe money to a state from my annual tax filings, if I don’t pay the full amount I get charged interest. But when they owe me, they ask for additional documentation and won’t pay me interest for them stonewalling me. Not much volatility y/y in earnings.

like

Hey Team

I'm on a H1B so I am supposed to pay Medicare and SS taxes, but my employer has not withheld anything- my hnr block advisor caught that but she just completed my returns assuming I don't have to pay those taxes

What is the right protocol in this case? Do I owe SS and fica taxes?

like

Need some help! Currently live in TX but work as an independent contractor (remote) for a NYC based company - do I still need to pay NY state convenience tax on income or would this only apply as a full-time employee?

like

Oct. 15th is almost here. Hang in there!

like

I want to leave tax. But as a salt manager what jobs would I even be qualified for?

like

I am on H1-B visa, open to relocate and looking for State & Local Tax (Income/Franchise) Experienced Senior/Manager opportunity. Which companies are currently hiring visa candidates? Appreciate the responses, thank you!

likehelpful

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal