Schedule NJ-BUS-1 Business Income Summary Schedule
Part I – Net Profits From Business
Report the net profits or loss from your business, trade, or profession.
Make the following adjustments to your federal Schedule C (or C-EZ or F):
1. Add any amount you deducted for taxes based on income.
2. Subtract interest you reported on federal Schedule C (or C-EZ or F) that is exempt for New Jersey purposes but taxable for federal purposes.
3. Add interest not reported on federal Schedule C (or C-EZ or F) from states or political subdivisions outside New Jersey that is exempt for federal purposes.
4. Deduct meal and entertainment expenses that constitute ordinary expenses incurred in the conduct of a trade or business but that were not allowed on the federal return.
5. Deduct your qualified contributions to a self-employed 401(k) Plan. Contributions that exceeded the federal limits are not deductible for New Jersey purposes.
6. Add interest and dividends derived in the conduct of a trade or business.
7. Add or subtract income or losses derived in the conduct of a trade or business from rentals, royalties, patents, or copyrights.
8. Add or subtract gains or losses from the sale, exchange, or other disposition of the trade or business’s property.
9. Add or subtract the net adjustment from the Gross Income Tax Depreciation Adjustment Worksheet GITDEP, Part 1, line 7.
If you are a sole proprietor who provides primary care services in a qualified medical or dental practice you own that is located in or within five miles of a designated Health Enterprise Zone (HEZ), you may be able to deduct a percentage of the net income from that practice on Line 34. See Technical Bulletin TB-56 for eligibility requirements and instructions for calculating the HEZ deduction.
For each business, enter the following information. If you need more space, enclose a statement with the return listing any additional businesses and the related profit or loss.
•• Business name as listed on Schedule C, C-EZ, or F
•• Social Security number or federal Employer Identification Number (EIN)
•• Profit or (loss) as adjusted for New Jersey purposes
Add the amounts in the Profit or (Loss) column and enter the total on Line 4, netting profits with losses. Enter this amount on Line 18, Form NJ-1040. If the netted amount is a loss, make no entry on Line 18.
Part-Year Residents. Include only the amounts you received while you were a resident of New Jersey.