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                         Table of Contents 

General Information ................................................................................................. 2
General Instructions ................................................................................................ 3
Who Must File.......................................................................................................... 3
Electronic Filing Mandate ........................................................................................ 4
When to File ............................................................................................................ 4
Extension of Time to File ......................................................................................... 5
Identification ............................................................................................................ 7
Income ..................................................................................................................... 7
New Jersey Additions .............................................................................................. 8
New Jersey Subtractions ......................................................................................... 8
New Jersey Allocated Income ................................................................................. 9
Partners Directory.................................................................................................. 10
Partnership Filing Fee ........................................................................................... 12
Schedule A............................................................................................................. 13
Schedule NJK-1..................................................................................................... 13
Business Allocation Schedule................................................................................ 15

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2022 NJ-1065
Partnership Return Instructions
The New Jersey Gross Income Tax Act does not 15th day of each of the fourth, sixth, and ninth months of
follow all federal income tax provisions for partner- the privilege period and on or before the 15th day of the
ships. For New Jersey Gross Income Tax purposes, all first month after the close of the privilege period.
items of income, expense, gain, or loss resulting from
the activities of the partnership, regardless of the item’s Most entities classified as partnerships for federal in-
character or category, must be included in the amount come tax purposes that have income or loss derived
reported on the NJ-1065 as “Partnership Income” and from New Jersey sources and that have more than two
then apportioned to each partner on Schedule NJK-1. owners must make a payment of a filing fee of $150 for
Each partner will report its portion of the total partnership each owner up to a maximum of $250,000. The filing fee
income as “distributive share of partnership income” is due on or before the 15th day of the fourth month after
on its individual tax return. Nonresident partners that the close of each privilege period. An installment pay-
have income or loss from New Jersey sources are also ment equal to 50% of the current year’s filing fee is also
required to file a tax return to report their share of part- required at the same time.
nership income. Nonresident partners will have to attach
a copy of their Schedule NJK-1 to claim credit for the tax All choices affecting the calculation of income from a
paid on their behalf. partnership are made by the partnership, not each part-
ner. This includes the choice of recognized methods of
The partnership income information required to be re- accounting, methods of calculating depreciation, capital-
ported on this form is needed to: (1) adjust certain items ization of organizational fees, and the use of the install-
of federal income to conform to the New Jersey Gross ment sale provisions. It also includes the classification
Income Tax Act, and (2) separate income derived from of income and the allocation of income to New Jersey.
New Jersey sources from amounts derived from all All partnership elections are equally applicable to all
sources. These adjustments and allocations provide the partners.
basis for the reporting of partnership income by both
New Jersey resident partners and nonresident partners.
GIT and CBT Partnership Returns
The amounts reported by the partnership on federal The Division has two partnership tax returns: Forms
Schedule K may require adjustments to ensure that all NJ-1065 and NJ-CBT-1065. The Gross Income Tax
income, expense, gain, or loss is ultimately reported by Act (GIT) at N.J.S.A. 54A:8-6 requires entities classi-
the partners as distributive share of partnership income fied as a partnership for federal income tax purposes
on the New Jersey Income Tax return. For example, in- having a resident owner or income derived from New
terest, dividends, rents, gains, or losses earned are to be Jersey sources to file a Gross Income Tax return, Form
combined with federal ordinary income (loss) to arrive at NJ-1065. Partnerships with more than two owners and
New Jersey partnership income (loss). income or loss from New Jersey sources may also be
subject to a filing fee. The fee is calculated and reported
If the partnership has operations outside New Jersey, on the NJ-1065.
all income, gain, or loss derived from sources other
than real property must be allocated according to the The Corporation Business Tax Act (CBT) at N.J.S.A.
business allocation percentage as determined by the 54:10A-15.11 imposes a tax on certain partnerships that
Business Allocation Schedule (NJ-NR-A) unless per- have nonresident owners. Partnerships subject to the
mission has been granted to use a substitute method CBT must file the NJ-CBT-1065. The separate forms
of allocation. Income, gain, or loss attributable to real help distinguish the differences that exist between the
property that is physically located in New Jersey must be Gross Income Tax and Corporation Business Tax Acts.
allocated entirely to this State. If the partnership is not a
qualified investment partnership, an investment club, or The filing fee is reported directly on the NJ-1065. The
is not listed on a United States national stock exchange, GIT filing fee is remitted with the Partnership Payment
but it has a nonresident noncorporate or a nonresident Voucher (NJ-1065-V). If the entity is also required to
corporate partner and it has operations outside New Jer- calculate and report Corporation Business Tax, the entity
sey, it must also complete Schedule J, Corporation Allo- must complete and file the NJ-CBT-1065. If the entity
cation Schedule, and file it with the NJ-1065 partnership has a CBT balance due, it is remitted with the Corpo-
return and pay any applicable tax due. Schedule J is not ration Business Tax–Partnership Payment Voucher
required for a partnership that meets hedge fund status if (NJ-CBT-V).
its only nonresident partners are individuals, estates, or
Partnerships that are members of an entity electing to
trusts.
pay the Pass-Through Business Alternative Income Tax
Partnerships that are subject to tax payments must make can choose where to apply the credit for their share of
installment payments of 25% of that tax on or before the the tax.

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                                                                                                                         3
• Partnership filing fee on the NJ-1065                      Hedge Fund Status is met for New Jersey tax purposes 
•  Nonresident partners tax on the NJ-CBT-1065               if the investment entity’s only activity is the purchase, 
                                                             holding, or sale of intangible personal property, such as 
•  Allocated to the partners on the Partners Directory on    commodities or securities, and such intangible personal 
  Form NJ-1065 if all partners are individuals, estates,     property is not held for sale to customers as defined at 
  or trusts                                                  N.J.S.A. 54A:5-8c. A partnership that qualifies for hedge 
•  Pass-Through Business Alternative Income Tax on the       fund status in one year may not meet the requirements 
                                                             every year. The entity must evaluate its situation on a 
  PTE-100 if they elect to pay the Pass-Through Busi-
                                                             yearly basis. The entity, not the partner, must make the 
  ness Alternative Income Tax
                                                             determination.

General Instructions                                         Investment Clubs are usually small groups of individ-
                                                             uals who pool their money to invest in stock or other 
Definitions                                                  securities. The group usually operates informally with 
Partnership, for tax purposes, means and includes a 
                                                             members pledging to pay a regular amount into the club 
syndicate, group, pool, joint venture, and any other un-
                                                             monthly. Some clubs have a committee that gathers 
incorporated organization through or by means of which 
                                                             information on securities, selects the most promising se-
any business, financial operation, or venture is carried 
                                                             curities, and recommends that the clubs invest in them. 
on and that is not a corporation, trust, or estate within 
                                                             Most clubs require all members to vote for or against all 
the meaning of the New Jersey Gross Income Tax Act. 
                                                             investments, sales, trades, and the other transactions.
Only entities that qualify for and elect to be treated as a 
partnership for federal tax purposes (for example, limited   Investment clubs recognize as their main source of in-
liability companies and limited liability partnerships) are  come interest, dividends, and gains on disposition of 
treated as partnerships under the New Jersey Gross In-       their stock and securities and usually meet hedge fund 
come Tax Act.                                                status. Investment clubs generally are not considered 
                                                             a business. An investment club is required to file Form 
“Tiered” Partnerships are arrangements in which one 
                                                             NJ-1065 but is not entitled to deduct any expenses 
partnership, the upper-tier or “parent” partnership, is a 
                                                             (unless it rises to the level of being in business). The 
member of, or holds an ownership interest in, another 
                                                             member or partner of the investment club will report their 
partnership (called the lower-tier or “subsidiary” partner-
                                                             share of the investment club’s income or loss as distribu-
ship). Tiered partnerships must complete Schedule A, 
                                                             tive share of partnership income.
NJ-1065 before completing lines 1 through 11 on the 
front of the NJ-1065.                                        If an investment club meets the following criteria, it will 
                                                             be exempt from the $150 per owner annual partnership 
Partner means any owner of a partnership interest.
                                                             filing fee and from the requirement that a partnership 
Nonresident Noncorporate Partner means an individ-           make payments on behalf of its nonresident owners. The 
ual, an estate, or a trust subject to taxation pursuant to   investment club must be an entity that is classified as a 
the “New Jersey Gross Income Tax Act” that is not a resi-    partnership for federal income tax purposes, all of the 
dent taxpayer or a resident estate or trust under that Act.  owners are individuals, and all of the assets are securi-
                                                             ties, cash, or cash equivalents. The market value of the 
Nonresident Corporate Partner means a partner that is        total assets do not exceed, as measured on the last day 
not an individual, an estate, or a trust subject to taxation of its privilege period, an amount equal to the lesser of 
pursuant to the New Jersey Gross Income Tax Act, that        $384,900 or $53,900 per owner of the entity. The invest-
is not a corporation exempt from tax pursuant to N.J.S.A.    ment club is not required to register itself or its member-
54:10A-3, and that does not maintain a regular place of      ship interests with the federal Securities and Exchange 
business in this State other than a statutory office.        Commission.

Qualified Investment Partnership means a partner-            Who Must File
ship that has more than 10 members or partners with          Every partnership that has income or loss derived from 
no member or partner owning more than a 50% interest         sources in the State of New Jersey, or has any type of 
in the entity and that derives at least 90% of its gross     New Jersey resident partner, must file Form NJ-1065. A 
income from dividends, interest, payments with respect       partnership must file even if its principal place of busi-
to securities, loans, and gains from the sale or other dis-  ness is outside the State of New Jersey. The NJ-1065 is 
position of stocks or securities or foreign currencies or    not solely an information return. A filing fee and tax may 
commodities or other similar income (including but not       be imposed on the partnership. Partners subject to the 
limited to gains from swaps, options, futures, or forward    Gross Income Tax must report and pay tax on their share 
contracts) derived with respect to its business of invest-   of partnership income or loss.
ing or trading in those stocks, securities, currencies, 
or commodities, but “investment partnership” does not 
include a “dealer in securities” within the meaning of sec-
tion 1236 of the federal Internal Revenue Code of 1986.

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                                                                                                                       4
How to File                                                  •  Schedule L, Complete Liquidation, if applicable;
Electronic Filing Mandate
Partnerships subject to the provisions of the Corpora-       •  All Schedule NJK-1s received if the partnership is a 
tion Business Tax Act (that is partnerships that remit tax    partner of another partnership;
based on any nonresident corporate and nonresident 
                                                             •  All Schedule PTE-K-1s received if the partnership is 
noncorporate partner’s allocable share of NJ partner-
                                                              a member of an entity that elected to pay the Pass-
ship income) that utilize the services of a paid preparer 
                                                              Through Busines Alternative Income Tax.
must file all their returns completed by that practitioner 
by electronic means. Payments of the partnership lia-        Form NJ-CBT-1065 must be completed if the entity cal-
bilities along with the submission of payment-related        culated a tax due on its nonresident partner(s).
returns (PART-200-T and CBT-206) must also be made 
electronically either by the partnership or by a paid tax    The Division may require that the complete federal 
practitioner.                                                Form 1065, including all schedules and supporting at-
                                                             tachments, and any other documentation or information 
In addition, partnerships with 10 or more partners must      deemed necessary be submitted during the course of an 
file all returns electronically regardless of whether or not audit.
they utilize the services of a paid tax preparer. To obtain 
the electronic filing and payment formats or to obtain       If at any time during the course of an audit the Division 
additional information on electronic filing and payment      deems it necessary, the partnership must make the 
options, visit the New Jersey Division of Revenue and        NJ-1065E available for all applicable partners.
Enterprise Services’ website at nj.gov/treasury/revenue/
partnerships.shtml or email the Division of Revenue and 
                                                             When to File
Enterprise Services at e-GovServices@treas.nj.gov.           Returns for Calendar Year 2022 are due April 18, 2023. 
                                                             Fiscal year returns are due the 15th day of the fourth 
NJ-1065 filers that do not use the services of a paid tax 
                                                             month after the end of the tax year.
preparer and who have less than 10 partners have the 
option to file by electronic means or on paper.              Any short period return must be filed by the due date of 
                                                             the federal Form 1065. The partnership should use the 
What to File                                                 most current form available from the Division of Taxation.
The following forms and statements must be included 
with the NJ-1065:                                            Postmark Date. All New Jersey Income Tax returns 
•  Schedule NJK-1 for every partner;                         postmarked on or before the due date of the return are 
                                                             considered to be filed on time. Returns postmarked after 
•  Pages 1 through 5 of the federal Form 1065, federal       the due date are deemed to be late. The filing date for a 
 Form 8825, federal Schedule D, and any federal ex-          late return is the day the return is received by the Divi-
 tension request forms filed;                                sion, not the postmark date.
•  Schedule NJ-NR-A if any of the following conditions 
 apply: (1) the partnership is doing business both in-       Where to File
 side and outside New Jersey, or (2) 100% of the part-       If you are not required to file electronically (see Elec-
 nership’s business is carried on outside New Jersey;        tronic Filing Mandate above) and choose to file on paper, 
                                                             use the addresses below.
•  Schedule J, Corporation Allocation Schedule, for tax 
 remittance purposes if the partnership is not a quali-      Mail your completed NJ-1065 to:
 fied investment partnership, investment club, or is not      NJ Division of Taxation – Revenue Processing Center 
 listed on a United States national stock exchange,           PO Box 194
 but has a nonresident noncorporate partner or a non-         Trenton NJ 08646-0194
 resident corporate partner. Schedule J is not required 
 for a partnership that meets hedge fund status if its       Mail your completed PART-200-T to:
 only nonresident partners are individuals, estates, or       NJ Division of Taxation – Revenue Processing Center 
 trusts;                                                      Extension of Time to File NJ-1065
•  Schedule J, Corporation Allocation Schedule, is re-        PO Box 642
                                                              Trenton NJ 08646
 quired if the partnership includes nonresident partners 
 who do not have physical nexus to New Jersey and            Mail your completed NJ-1065-V to:
 the partnership wants to allocate the filing fee;            NJ Division of Taxation – Revenue Processing Center 
•  Worksheet GIT-DEP, Gross Income Tax Depreciation           Filing Fee on Partnerships
 Adjustment Worksheet, if applicable;                         PO Box 642
                                                              Trenton NJ 08646
•  Schedule B, Sheltered Workshop Tax Credit, if 
 applicable;                                                 Note: Do not attach the NJ-1065-V to or mail with 
                                                             your NJ-1065.

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5
Extension of Time to File year for New Jersey Income Tax purposes must be the
If a five-month extension is obtained for filing federal same as its tax year for federal income tax purposes.
Form 1065, then an automatic five-month extension is
granted for submitting your NJ-1065. A copy of your ap- Passive Loss Limitations
plication for federal extension, federal Form 7004, must Passive loss limitations do not apply for New Jersey
be filed with your New Jersey return. Check the box Gross Income Tax purposes. The full amount of current
labeled “Application for federal extension is attached” on loss may be used to offset income or gain, regardless of
the front of your NJ-1065. If you did not obtain a federal federal passive loss limitations.
extension and you need more time to file your New Jer-
sey NJ-1065, federal Form 7004 must be submitted as Determining Gain or Loss on the Sale or
your request to New Jersey on or before the original due
date of the return. Disposition of Partnership Assets, Koch
Effect
In addition, any partnership that has a filing fee due must The partnership in determining gain or loss for New Jer-
file PART-200-T, Partnership Application for Extension of sey purposes on the sale or disposition of partnership
Time to File NJ-1065. The applicable payment must ac- asset(s) must use the same basis in the asset(s) as
company this form. PART-200-T must be postmarked on used for federal tax purposes. The New Jersey Supreme
or before the original due date of the return. See specific Court’s decision in Sidney & Dorothy Koch v. Director,
instructions found on back of PART-200-T. Division of Taxation does not apply to the sale, disposi-
tion, or liquidation of assets by a partnership.
There is no extension of time to pay the fee due. Penal-
ties and interest are imposed whenever the fee is paid Gains or losses incurred by a partnership are passed
after the original due date. through to the partners to be reflected on their respec-
tive New Jersey tax returns. Partners who are taxpayers
A five-month extension of time to file your NJ-1065 may subject to New Jersey Gross Income Tax will generally
be granted if at least 80% of the total fee reported on report this gain or loss as a component of their “Distribu-
your NJ-1065 when filed is paid in the form of an install- tive share of partnership income” unless the partnership
ment payment or other payment made by the original had a complete liquidation.
due date.
Resident taxpayers that sell or dispose of a partnership
An extension of time to file the NJ-1065 does not interest may be entitled to a Koch-type adjustment to
extend the time for filing the tax returns of the their federal basis in the partnership when determining
partners. New Jersey gain or loss. The gain or loss on the sale
or disposal of the partnership interest will then be re-
Time Limits for Assessing Additional Filing flected on the taxpayer’s New Jersey return in the cat-
egory of income “Net gains or income from disposition
Fees
Partnerships that are required to file an NJ-1065 may be of property.” The sale or disposition of a partnership
subject to owing a filing fee. Filing fees are subject to the interest is the only time a partner that is a taxpayer for
provisions of the Gross Income Tax Act. The Gross In- Gross Income Tax purposes can make Koch-type basis
come Tax Act has a three-year statute of limitations (time adjustments.
allowed by law) for the Division of Taxation to send a
bill. The Division generally has three years from the date Forms and Assistance
To get New Jersey tax forms:
the entity filed its partnership return or the original due
date of the return, whichever is later, to send the entity • Visit our website at:
a bill for additional filing fees. There is no time limit if the nj.gov/taxation
entity did not file a partnership return, or if the entity filed •
Write to:
a false or fraudulent return with the intent to evade tax.
NJ Division of Taxation
The time limit may be extended in certain circumstances.
Taxpayer Form Services
PO Box 269
Accounting Method Trenton NJ 08695-0269
A partnership’s accounting method(s) used for the
NJ-1065 must be the same as the accounting meth- Assistance from a Division representative is available
ods(s) used for federal Form 1065. by contacting the Division’s Customer Service Center at
(609) 292-6400.
Accounting Periods
The 2022 NJ-1065 should be used for Calendar Year Electronic Filing Assistance
2022, or for a fiscal year that began in 2022. If filing for For electronic filing assistance:
a fiscal year or a short tax year, enter at the top of the
NJ-1065 the month and day the tax year began, and the • Call the Division of Revenue and Enterprise Services’
month, day, and year that it ended. The partnership’s tax Call Center at (609) 292-9292

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                                                                                                                         6
•  Download the needed formats from the New Jersey            when a return is filed after the due date or extended 
 Division of Revenue and Enterprise Services’ website         due date will be imposed. A penalty of $100 for each 
 at: nj.gov/treasury/revenue                                  month or part of a month the return is late may also be 
                                                              imposed.
Amended Return or Federal Change
An amended NJ-1065 must be filed if an amended                Late Payment Penalty. 5% of the outstanding tax bal-
federal Form 1065 is filed, or if the Internal Revenue        ance may be imposed.
Service changes or corrects any item of income, gain, 
                                                              Interest. 3% above the prime rate for every month or 
or loss previously reported. The amended New Jersey 
                                                              part of a month the tax is unpaid, compounded annually. 
return must be filed within 30 days of the date the 
                                                              At the end of each calendar year, any tax, penalties, 
amended federal Form 1065 is filed or, in the case of a 
                                                              and interest remaining due (unpaid) will become part of 
federal audit, within 90 days after the final determination 
                                                              the balance on which interest is charged. See Technical 
of the change. When an amendment to the NJ-1065 
                                                              Bulletin TB-21(R) for current and previous years’ interest 
results in a need to amend the Schedules NJK-1, an 
                                                              rates.
amended Schedule NJK-1 must be forwarded to the 
Division of Taxation and to each partner.
                                                              Fraudulent Returns
An amended NJ-1065 and an amended Schedule NJK-1              Any person who deliberately fails to file a return, files 
for each partner must also be filed to correct any error      a fraudulent return, or attempts to evade the tax in any 
on or reflect any change to the original NJ-1065, whether     way may be liable for a penalty up to $7,500 or imprison-
or not an amended federal Form 1065 was filed for that        ment for three to five years, or both.
year.
                                                              Rounding Off to Whole Dollars
To amend your original NJ-1065, get a blank NJ-1065           Money items on the return and schedules can be shown 
for the tax year that is to be amended, and check the         in whole dollars (eliminate amounts under 50 cents; en-
“Amended Return” box on the front of the form. Com-           ter amounts of 50 cents or more as the next higher dollar 
plete the form, entering the corrected information, and       amount).
attach an explanation of the changes. Entities sub-
ject to the Electronic Filing Mandate as explained on 
                                                              Signatures
page 4 under “How to File” are required to file their         The NJ-1065 is not considered to be a return unless 
amended return electronically. Entities that are not sub-     signed, either by a general partner, limited liability com-
ject to the Electronic Filing Mandate have the option of      pany member or, if applicable, a receiver, trustee in 
filing their amended partnership return electronically or     bankruptcy, or assignee.
mailing it to:
 NJ Division of Taxation                                      Anyone who prepares a partnership return for a fee must 
 Revenue Processing Center                                    sign the return as a “Paid Preparer” and must enter their 
 PO Box 194                                                   Social Security number or federal practitioner tax identi-
 Trenton NJ 08646-0194                                        fication number. The company or corporation name and 
                                                              federal employer identification number must be included 
                                                              if applicable. The preparer required to sign the partner-
Penalty and Interest Charges
                                                              ship return must sign it by hand; signature stamps or la-
A penalty of $100 for each month or part of a month 
                                                              bels are not acceptable. If someone prepares the return 
will be imposed for a partnership that is required to file 
                                                              at no charge, the paid preparer’s area does not need to 
electronically but fails to do so. In addition, a late filing 
                                                              be completed. A tax preparer who fails to sign the return 
penalty of 5% per month (or part of a month) up to a 
                                                              or provide a correct tax identification number may incur a 
maximum of 25% of the outstanding tax liability will also 
                                                              $25 penalty for each omission.
be imposed.

The Division may impose a penalty against the partner-        Composite Return for Qualified Electing 
ship if the partnership is required to file an NJ-1065 and    Nonresident Partners
(1) fails to file the return on time, including any exten-    A partnership that has New Jersey source income can 
sion, (2) files a return that fails to show all the informa-  file a composite return (NJ-1080-C) on behalf of its qual-
tion required, or (3) fails to file an amended partnership    ified nonresident partners who elect to be included in 
return within 90 days of the date a final federal determi-    the composite filing. Tax will be calculated at the highest 
nation or disallowance is issued or within 90 days of the     rate, which is 10.75%, without regard to each partner’s 
date the amended federal Form 1065 is filed, unless the       filing status, dependent exemptions, or any deductions. 
failure is due to reasonable cause and not due to willful     Composite estimated tax payments can also be made.
neglect.
                                                              A partner cannot participate in the composite return if:
Late Filing Penalty. 5% per month (or part of a month) 
up to a maximum of 25% of the outstanding tax liability       •  The partner is an estate or trust;

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                                                                                                                      7
•  The partner is a partnership or corporation;            •  Permission has been granted for a substitute method 
• The partner files on a fiscal year basis;                  of allocation;
•  The partner is a New Jersey resident during any part    •  Complete Liquidation;
  of the year;                                             • This is a Qualified Investment Partnership;
•  The partner derives income from New Jersey sources      •  This partnership is listed on a United States national 
  other than the income from this or any other compos-       stock exchange;
  ite return.                                              •  The partnership meets hedge fund status; 
Every participating partner must make the election to      •  This is an Investment Club that is exempt from the 
be part of the composite return in writing by filing an      filing fee and the requirement that a partnership make 
NJ-1080E with the filing entity each year. The elections     payments on behalf of its nonresident owners in ac-
must be maintained in the partnership files. When filed,     cordance with the criteria outlined under “General 
the composite return must include a list of the partners     Instructions;”
who are participating, as well as a list of those who have • A composite return is filed for nonresident partners; 
not elected, or are not qualified, to participate in the   •  During the period covered by the return, the partner-
composite return. The list must include each partner’s       ship acquired or disposed of, directly or indirectly, a 
name, address, and federal identification number. A          controlling interest in certain commercial property. 
qualified electing nonresident participant cannot revoke     Certain commercial property is identified as Class 4A 
an election to be included in the composite return or        commercial property as defined in N.J.A.C. 18:12-2.2;
make an election to be included in the composite return    •
                                                             This is a Tiered Partnership;
after April 15 following the close of the tax year.
                                                           •  This is a General Partnership;
If a composite return is filed, check the box labeled      •  This is a Limited Partnership;
“Composite Return is filed for Nonresident Partners” on    •  This is a Limited Liability Company; or
the front of the, NJ-1065.
                                                           •  This is a Limited Liability Partnership.

Line-by-Line Instructions                                  Federal Partnership Income (Lines 1–11)
                                                           Note: Tiered partnerships must first complete Sched-
Reporting Period
                                                           ule A and partnerships that have had a complete liqui-
If you are reporting for a period other than Calendar Year 
                                                           dation must complete Schedule L before completing the 
2022, enter the beginning and ending dates of your fiscal 
                                                           front of the NJ-1065.
year.
                                                           Line 1 – Ordinary Income (Loss) From Trade or 
Partnership Name, Address, Identification                  Business Activities
Enter the exact legal name, trade name, if any, and ad-    Enter on line 1 the amount of ordinary income or loss de-
dress of the partnership. The legal name is the name       rived from the partnership’s trade or business activities. 
in which the business owns property or acquires debt.      This will be the amount reported on line 1, Schedule K, 
Enter the trade name, registered alternate name, (d/b/a    federal Form 1065.
name) if different from the partnership’s legal name.
                                                           Line 2 – Net Income (Loss) From Rental Real Estate 
Enter the partnership’s federal employer identification    Activities
number (FEIN), principal business activity, and date the   Enter on line 2 the net income or loss from rental real es-
business was started.                                      tate activities (attach a copy of your federal Form 8825). 
                                                           This will be the amount reported on line 2, Schedule K, 
Enter the number of resident partners and the number of    federal Form 1065. 
nonresident or foreign partners in the spaces provided. 
Each partner’s residency status must be determined as      Line 3 – Net Income (Loss) From Other Rental 
of the close of the partnership’s tax year.                Activities 
                                                           Enter on line 3 the net income or loss from other rental 
Check the appropriate boxes to indicate whether the re-    activities. This will be the amount reported on line 3c, 
turn is a(n)                                               Schedule K, federal Form 1065.
•  Initial return; 
•  Final return; or                                        Line 4 – Guaranteed Payments to Partners
                                                           Enter on line 4 the amount of guaranteed payments to 
•  Amended return. 
                                                           partners reported on line 4, Schedule K, federal Form 
                                                           1065.
Check the appropriate boxes to indicate if 
•  An application for a federal extension is attached;     Line 5 – Interest Income 
                                                           Enter on line 5 the amount of interest income reported 
                                                           on line 5, Schedule K, federal Form 1065.

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8
Line 6 – Dividend Income Line 13c – Total Additions
Enter on line 6 the amount of dividend income reported Add lines 13a and 13b and enter the result.
on line 6, Schedule K, federal Form 1065.
Line 14 – Subtotal
Line 7 – Royalty Income Add lines 12 and 13c and enter the result.
Enter on line 7 the royalty income reported on line 7,
Schedule K, federal Form 1065. New Jersey Subtractions
Line 15a – Net Income (Loss) From Rental Real
Line 8 – Net Gain (Loss) From Disposition of Estate Activities
Property Enter on line 15a any income or loss that resulted from
Enter on line 8 the total of the net short-term and long- rental real estate activities and is included in the amount
term gains and/or losses reported on lines 8 and 9, reported on lines 1 or 2.
Schedule K, federal Form 1065. Attach a copy of Sched-
ule D, federal Form 1065. Line 15b – Net Gain (Loss) From Disposition of Real
Property
Line 9 – Net IRC Section 1231 Gain (Loss) Enter on line 15b any gain or loss that resulted from the
Enter on line 9 the net IRC Section 1231 gain or loss re- sale, exchange, or disposition of real property and is in-
ported on line 10, Schedule K, federal Form 1065. cluded in the amount reported on lines 1, 8, or 9.

Line 10 – Other Income (Loss) Line 15c – Guaranteed Payments to Partners
Enter on line 10 any other income or loss that is not in- Enter on line 15c the amount of guaranteed payments to
cluded on lines 1 through 9 above. This will include the partners reported on line 4.
amount reported on line 11, Schedule K, federal Form
1065. If any amount is reported on this line, you must at- Line 15d – Interest Income From Federal Obligations
tach a schedule identifying the income or loss. Enter on line 15d any interest from federal obligations
that is excludable from New Jersey gross income and is
Line 11 – Tax-Exempt Interest Income included in the amount reported on lines 5 or 6.
Enter on line 11 the amount of tax-exempt interest in-
come reported on line 18a, Schedule K, federal Form Line 15e – Interest Income From New Jersey
1065. Obligations
Enter on line 15e the amount of interest income from
Line 12 – Subtotal New Jersey obligations that is excludable from New Jer-
Add lines 1 through 11 and enter the result. sey gross income and is included in the amount reported
on lines 6 or 11.
New Jersey Additions
Line 13a – Taxes Based on Income Note: For lines 15d and 15e, amounts excludable from
Enter on line 13a the amount of taxes based on income income include interest and dividends on obligations
that were deducted to determine ordinary income (loss) of the State of New Jersey or any of its political subdi-
on line 1. visions and from tax-exempt obligations of the United
States government, its territories, or instrumentalities.
Line 13b – Other Additions – Specify Distributions from New Jersey qualified investment funds
Enter on line 13b any other items deducted from or not are also exempt, as are distributions from other invest-
included on lines 1 through 11 that are not excludable ment funds, but only to the extent the distribution is de-
under the New Jersey Gross Income Tax Act. rived from obligations of the type described at N.J.S.A.
54A:6-14, et seq.
If an asset has been placed in service since January 1,
2004, refer to Worksheet GIT-DEP. This worksheet is Line 15f – IRC Section 179 Expense
available on the Division’s website. Include any net addi- Enter on line 15f the IRC Section 179 expense
tion adjustment from Worksheet GIT-DEP, if applicable, deduction.
if federal income included deduction of federal special
depreciation allowance or IRC Section 179 expense; Line 15g – Other Subtractions – Specify
federal Section 179 recapture income; or a gain or loss Enter on line 15g any other items that are excludable
on disposition of such asset. or deductible from the income included in the subtotal
reported on line 12 for New Jersey Gross Income Tax
Specify each item reported. If the amount reported on purposes. Specify each item subtracted.
line 12, NJ-1065, included any loss incurred in connec-
tion with the disposition of exempt New Jersey or federal Examples of some items that might be reported on this
obligations, you must add back the amount of such loss line are:
on this line.
• Dividends from exempt federal and New Jersey obli-
gations described at N.J.S.A. 54A:6-14;

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                                                                                                                        9
•  Gains from the sale of exempt federal and New             income, gains, expenses, or losses attributable to 
  Jersey obligations excludable pursuant to N.J.S.A.         sources within New Jersey must, except as provided be-
  54A:5-1c;                                                  low, be determined by use of the NJ-NR-A as prepared 
•  Meal and entertainment expenses that constitute or-       by the partnership.

  dinary business expenses incurred in the conduct of        If a partnership’s activity is carried on both within and 
  a trade or business that are not deductible for federal    outside New Jersey and the partnership believes that the 
  purposes;                                                  determination of the portion of the partnership’s income, 
•  If an asset has been placed in service since              gains, expenses, or losses attributable to sources within 
  January 1, 2004, refer to Worksheet GIT-DEP. This          New Jersey by use of the NJ-NR-A does not provide an 
  worksheet is available on the Division’s website. In-      equitable allocation of such items, and the books and 
  clude any net subtraction adjustment from Worksheet        records of the partnership will disclose to the Director’s 
  GIT-DEP, if applicable, if federal income included         satisfaction a more appropriate method of allocating 
  deduction of federal special depreciation allowance or     such items, the partnership can request from the Di-
  IRC Section 179 expense; federal Section 179 recap-        rector an exception from the use of the NJ-NR-A. Such 
  ture income; or a gain or loss on disposition of such      request must be made in writing to: Gross Income Tax 
  asset.                                                     Branch, Business Allocation Exemption, PO Box 288, 
                                                             Trenton, NJ 08695-0288.
Note: A partnership is not entitled to a basis adjustment 
in the calculating and reporting of partnership gain or      Your request for exception from the use of the NJ-NR-A 
loss from the sale or disposition of partnership assets      must set forth the basis of the request and the substitute 
as was extended to individuals, as in the Koch case, on      method of allocation requested to be used in lieu of the 
the sale or disposition of a partnership interest. The part- NJ-NR-A. The substitute method of allocation cannot 
nership must always use federal adjusted basis when          be utilized prior to the submission of the partnership’s 
determining gain or loss. Only taxpayers as defined pur-     exception request and the approval of such request by 
suant to N.J.S.A. 54A:1-2.l are entitled to a Koch-type      the Director. The partnership’s exception request, once 
adjustment.                                                  approved, must be made every three years, unless the 
                                                             Director or the partnership requests a change sooner.
Line 15h – Total Subtractions
Total lines 15a through 15g and enter the result.            Note: A partnership that is not a qualified investment 
                                                             partnership, investment club, or that is not listed on a 
Line 16a – Subtotal                                          United States national stock exchange, but has a non-
Subtract line 15h from line 14 and enter the result.         resident noncorporate partner or a nonresident corporate 
                                                             partner must also complete Schedule J, Corporation 
New Jersey Allocated Income                                  Allocation Schedule. Schedule J is not required for 
Line 16b – New Jersey Allocated Adjusted                     a partnership that meets hedge fund status if its only 
Partnership Income                                           nonresident partners are individuals, estates, or trusts. 
A Business Allocation Schedule, Form NJ-NR-A, must           Schedule J is to be completed based on the partnership 
be completed by every partnership entity, including those    entity’s information, not the nonresident partner’s infor-
that have met hedge fund status, that is not reporting       mation. The corporation business allocation factor will be 
100% of its activity to New Jersey or that has not been      reported on line 1 of the Partners Directory. Schedule J 
granted permission to use a substitute method of alloca-     is required if the partnership includes nonresident part-
tion. Failure to file the NJ-NR-A or to check the box that   ners who do not have physical nexus to New Jersey and 
a substitute method of allocation has been granted           the partnership wants to allocate their filing fee.
may result in 100% of your partnership’s income or loss 
being sourced to New Jersey.                                 Line 17 – Net Income (Loss) From Rental Real Estate 
                                                             Activities
Enter the business allocation percentage from line 5,        Enter on line 17, column A, the amount of net income or 
NJ-NR-A on the line provided at 16b. A percentage            loss from rental real estate activities that was reported 
must be entered unless you have been granted per-            on line 15a.
mission to use a substitute method of allocation. 
If permission has been granted, leave the line at            Enter on line 17, column B, the portion of the amount 
16b blank and enter the actual New Jersey source             reported in column A that was derived from real property 
amount. Enter 100% if all partnership activities are car-    physically located in New Jersey.
ried on in New Jersey or 0% if all partnership activities 
                                                             Line 18 – Net Gain (Loss) From Disposition of Real 
are carried on outside New Jersey. Multiply the amount 
                                                             Property
on line 16a by this percentage and enter the result on 
                                                             Enter on line 18, column A, the amount of gain or loss 
line 16b, column B.
                                                             from the disposition of real property reported on line 15b.
If a partnership’s activity is carried on both within and 
outside New Jersey, the portion of the partnership’s

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                                                                                                                    10
Enter on line 18, column B, the portion of the amount re- Line 25 – Total Nonresident Corporate Partners 
ported in column A that was derived from the disposition  Share of Tax
of real property physically located in New Jersey.        Enter on line 25, column B, the total nonresident corpo-
                                                          rate partners share of tax reported on line 2c, column K, 
Line 19 – Net Partnership Income (Loss)                   of the Partners Directory.
Add lines 16a, 17, and 18, column A, and enter the sum 
on line 19, column A.                                     Note: If tax is reported on line 24 and/or line 25, 
                                                          NJ-CBT-1065 must be completed.
Add lines 16b, 17, and 18, column B, and enter the sum 
on line 19, column B.
                                                          Partners Directory 
Line 20 – Income (Loss) From Tiered Partnership(s)        List the partners in order of their ownership interest in 
Enter on line 20, column A, the amount, if any, of income the partnership, beginning with the partner who holds the 
or loss from other partnerships as reported on line 13,   largest share.
column A, of Schedule A, Part II, NJ-1065.
                                                          Note: A partnership that is a qualified investment part-
Enter on line 20, column B, the amount, if any, of income nership, an investment club, or that is listed on a United 
or loss from other partnerships as reported on line 13,   States national stock exchange does not have to com-
column B, of Schedule A, Part II, NJ-1065.                plete Schedule J, Corporation Allocation Schedule. A 
                                                          partnership that meets hedge fund status and whose 
Line 21 – Partnership Income (Loss)                       only nonresident partners are individuals, estates, or 
Add lines 19 and 20, column A, and enter the sum on       trusts does not have to complete Schedule J. All other 
line 21, column A.                                        partnerships that have nonresident noncorporate part-
                                                          ners or nonresident corporate partners must complete 
Add lines 19 and 20, column B, and enter the sum on 
                                                          Schedule J and file it with the NJ-1065. They must also 
line 21, column B.
                                                          complete columns H, I, J, and K on the Partners Direc-
Line 22a – Guaranteed Payments to Partners                tory for each nonresident noncorporate and nonresi-
Enter on line 22a, column A, the amount of guaranteed     dent corporate partner. 
payments to partners reported on line 15c.
                                                          Line 1 – Corporation Allocation Factor
Line 22b – Guaranteed Payments to Partners –              Enter the allocation factor from line 1h of Schedule J on 
Pension                                                   line 1 of the Partners Directory.
Enter on line 22b, column A, the amount of guaranteed 
                                                          If you are a qualified investment partnership, investment 
payments to retired partners who are receiving such 
                                                          club, listed on a United States national stock exchange, 
payments as a result of a period of service to the part-
                                                          or meet hedge fund status whose only nonresident part-
nership pursuant to a retirement agreement or pension 
                                                          ners are individuals, estates, or trusts, enter zero.
plan.
                                                          Partnerships should verify the residency status of each 
Line 22c – Net Guaranteed Payments to Partners
                                                          partner before completing column A. Partnerships are 
Subtract the amount on line 22b from the amount on line 
                                                          not to remit tax on behalf of resident partners. Resident 
22a and enter the result on line 22c, column A.
                                                          partners will not receive a credit on their resident New 
Multiply the amount from line 22c, column A, by the busi- Jersey tax returns for any payments made on their be-
ness allocation percentage on line 16b. Enter the result  half by the partnership.
on line 22c, column B.
                                                          Column A: Use the following codes to identify the part-
If a substitute method of allocation was granted, enter   ner’s residency status and type:
the actual New Jersey source amount.                      RI    –       New Jersey Resident Individual
                                                          NR    –       Nonresident Individual
Line 23 – Net Gain (Loss) From the Disposition of         PI    –       Part-Year Resident Individual
Assets as a Result of a Complete Liquidation              RP    –       New Jersey Resident Partnership
Enter on line 23, column A, the amount from line 12, col- NP    –       Nonresident Partnership
umn D of Schedule L.                                      NPM   –       Nonresident Partnership (see page 11)
                                                          RT    –       New Jersey Resident Trust
Enter on line 23, column B, the amount from line 12, col-
                                                          NT    –       Nonresident Trust
umn E of Schedule L.
                                                          RE    –       New Jersey Resident Estate
Line 24 – Total Nonresident Noncorporate Partners         NE    –       Nonresident Estate
Share of Tax                                              RC    –       New Jersey Corporation
Enter on line 24, column B, the total nonresident non-    FC    –       Non-New Jersey Corporation
corporate partners share of tax reported on line 2c, col- FCM   –       Non-New Jersey Corporation (see below)
umn J, of the Partners Directory.                         EFC   –       Exempt Foreign Corporation

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11
RO – New Jersey Resident Other Column C: Enter each partner’s Distributive Share of
NO – Nonresident Other Partnership Income or Loss from line 4, column A, of
NOE – Nonresident Other (see below) their Schedule NJK-1.
NOM – Nonresident Other (see below)
Column D: Enter each partner’s Distributive Share of
General partners must be identified. The letter “G” must Partnership Income or Loss from line 4, column B, of
be added to the end of each existing code to designate if their Schedule NJK-1.
the partner is a general partner in the entity.
Column E: Enter each partner’s share of the net gain
Codes NPM, FCM, and NOM are used to identify non- (loss) from the disposition of assets as a result of a com-
resident partners that maintain a regular place of busi- plete liquidation from line 6, column A, of their Schedule
ness in New Jersey other than a statutory office. No NJK-1.
tax is to be remitted on their behalf or on behalf of an
exempt foreign corporation (EFC) or on a retirement plan Column F: Enter each partner’s share of the net gain
approved by the Internal Revenue Service (NOE). (loss) from the disposition of assets as a result of a com-
plete liquidation from line 6, column B of their Schedule
For codes NPM, FCM, NOM, EFC, and NOE, the part- NJK-1.
nership must obtain and retain in its files a fully com-
pleted and signed NJ-1065E. The form is valid for one Column G: Enter each partner’s share of pension in-
return period and a new form must be filed with the part- come from line 5, column A, of their Schedule NJK-1.
nership for any subsequent return periods. If at any time
during the course of an audit the Division deems it nec- Column H: Enter each nonresident noncorporate (codes
essary, the partnership must make the form(s) available. NR, NT, and NE) partner’s share of total income or
loss. No entry is required if the partnership is a qualified
Attach a rider to explain the partner’s entity type in detail investment partnership, investment club, is listed on
for codes RO, NO, and NOM. a United States national stock exchange, or if the part-
nership meets hedge fund status and has checked the
Column B: Enter each partner’s Social Security number appropriate boxes on the front of the NJ-1065.
(SSN) for individual partners or federal employer identifi-
cation number (FEIN) for partners that are entities other Enter each nonresident corporate (codes NP, FC, and
than individuals, as well as each partner’s name and NO) partner’s share of total income or loss. No entry is
address. For individuals, the statute requires that the required if the partnership is a qualified investment part-
address be that of the person’s principal residence. nership or if it is listed on a United States national stock
If the partner is an entity other than an individual, enter exchange and has checked the appropriate boxes on the
the partner’s business name. For corporations, enter front of the NJ-1065.
the address of commercial domicile. If the partner is a
disregarded entity, enter the FEIN, name, and address Add lines 1 through 11, plus any “Tax-exempt inter-
of the beneficial owner of the DE. Enter each partner’s est income” included on line 18 from their Schedule
ownership percentage as of the close of the tax year. If K-1, federal Form 1065.
a partner disposed of all or part of an ownership interest
Column I: Enter each nonresident partner’s share of
during the year, list the partner by the ownership per-
New Jersey income. Multiply the amount from column
centage before the disposition.
H by the corporation allocation factor on line 1. If the
Enter a “Y” if this is the final Schedule NJK-1 for the amount in column H is a loss, do not make an entry in
partner. column I.

Note: The amounts listed in columns C and D represent Column J: Enter each nonresident noncorporate part-
the distributive share of partnership income (loss) and ner’s (codes NR, NT, and NE) share of tax. Multiply the
the amounts listed in columns E and F represent the amount from column I by 6.37%.
net gain (loss) from disposition of assets as a result of a
If an amended return is filed and the result of multiply-
complete liquidation that the partners who are subject to
ing the amount from column I by 6.37% is less than the
Gross Income Tax are required to report on their tax re-
amount reported on the original Partners Directory, re-
turns. Columns C and D and columns E and F reflect the
port the amount listed on the original Partners Directory.
adjustments allowed for Gross Income Tax purposes that
Do not report the lesser amount, since the partner is en-
are reported on page 1 of the NJ-1065. The amounts
titled to claim credit for the originally reported amount.
listed in columns H and I represent the nonresident
partner’s share of income for which the partnership is If the partnership files Form PTE-100 and pays the Pass-
required to remit tax. Columns H and I do not reflect any Through Business Alternative Income Tax, no amount is
adjustments. The combined amounts reported in col- required in column J for any partner that reasonably ex-
umns C and D and in columns E and F may differ from pects that their share of New Jersey tax will be refunded
the amounts reported in columns H and I. when they file their own return.

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                                                                                                                      12
Column K: Enter each nonresident corporate part-            Note: A partnership that is not required to remit a pay-
ner’s (codes NP, FC, and NO) share of tax. Multiply the     ment of tax on behalf of its nonresident noncorporate or 
amount from column I by 9%.                                 nonresident corporate partners may still be required to 
                                                            pay a filing fee. See the instructions for the Filing Fee 
If an amended return is filed and the result of multiplying Schedule that is part of PART-200-T, Partnership Appli-
the amount from column I by 9% is less than the amount      cation for Extension of Time to File Form NJ-1065, to 
reported on the original Partners Directory, report the     see if you are required to make a payment.
amount listed on the original Partners Directory. Do not 
report the lesser amount, since the partner is entitled to 
claim credit for the originally reported amount.            Partnership Filing Fee
                                                            Any entity classified as a partnership for federal income 
If the partnership files Form PTE-100 and pays the Pass-    tax purposes, other than an investment club, that has 
Through Business Alternative Income Tax, no amount is       any income or loss derived from New Jersey sources 
required in column K for any partner that reasonably ex-    and that has more than two owners is required to make 
pects that their share of New Jersey tax will be refunded   a payment of a filing fee of $150 for each owner of an 
when they file their own return.                            interest in the entity up to a maximum of $250,000.

Column L                                                    Line 1 – Number of Partners
Complete column L only if you indicate at Schedule A,       Enter the applicable number of each type of owner in 
Part II, line 14 that the Share of Pass-Through Business    your entity on the lines 1a through 1c. The number of 
Alternative Income Tax will be allocated to the partners.   owners will generally be equal to the number of Sched-
All partners must be individuals, trusts, or estates (RI,   ule NJK-1s issued. Enter the allocation factor from 
NR, PI, RT, NT, RE, or NE).  Enter in column L each         line 1h of Part II of Schedule J in the box provided on 
partner’s share of the amount from Schedule A, Part II,     line 1c. Add lines 1a–1c and enter the total on line 1d, 
line 13, column D.                                          but do not enter more than $250,000.

Line 2a – Total This Page                                   Line 2 – Installment Payment
Total all partners’ share of tax from columns J, K, and     Multiply the amount reported on line 1d by 50% and en-
L of page 3, NJ-1065. Enter zero if no tax is reported in   ter the result. If you checked the box on the front of the 
column(s) J, K, and/or L.                                   return indicating that the return is a “Final Return,” enter 
                                                            zero.
Line 2b – Total From ________ Additional Pages 
Attached                                                    Line 3 – Pass-Through Business Alternative Income 
Enter the total number of additional pages attached on      Tax Credit
the line provided. Enter the sum of the totals for columns  If you check the partnership filing fee box at Schedule 
J, K, and L from each additional page attached. Enter       A, Part II, line 14, enter the partnership’s total Share of 
zero if no tax is reported in column(s) J, K, and/or L.     Pass-Through Business Alternative Income Tax from 
                                                            Schedule A, Part II, line 13, column D.
Line 2c – Total Tax
Add lines 2a and 2b from columns J, K, and L and en-        Line 4 – Installment Payment From 2021
ter the results on line 2c. Carry the total from column J   Enter the amount from line 2 of the Partnership Filing 
to line 24 and the total from column K to line 25 on the    Fee section of your 2021 NJ-1065.
NJ-1065.
                                                            Line 5 – PART-200-T Payment
If you indicated on Schedule A, Part II, line 14 that the   Enter the amount of the payment remitted with your 
share of Pass-Through Business Alternative Income Tax       2022 Partnership Application for Extension of Time to 
will be allocated to the partners, the total from column L  File NJ-1065.
must match the amount reported on Schedule A, Part II, 
line 13, column D.                                          Lines 6 and 7
                                                            If the total of lines 1d and 2 is more than the total of lines 
Signature                                                   3, 4, and 5, there is a balance due. Complete line 6.
The return must be signed and dated by a general part-
ner or limited liability company member.                    If the total of lines 1d and 2 is less than the total of lines 
                                                            3, 4, and 5, there is an overpayment. Complete line 7.
Anyone who prepares a return for a fee must sign the 
return as a “Paid Preparer” and enter their Social Se-      Line 6 – Balance Due
curity number or federal practitioner tax identification    Subtract lines 3, 4, and 5 from the total of lines 1d and 2 
number. Include the company or corporation name and         and enter any balance due here. Make check payable to 
federal employer identification number, if applicable. A    “State of New Jersey–PART” and remit with completed 
tax preparer who fails to sign the return or provide a tax  NJ-1065-V, Partnership Payment Voucher.
identification number may incur a penalty of $25 for each 
omission.

- 13 -

13
Line 7 – Refund column L. (This option is only available if all partners
Subtract lines 1d and 2 from the total of lines 3, 4, and 5 are individuals, estates, or trusts.)
and enter the overpayment to be refunded. •
Partnership Filing Fee – Enter on Form NJ-1065,
Partnership Filing Fee line 3.
Schedule A
• Nonresident Partners Tax – Enter on Form
Part I NJ-CBT-1065, line 7.
Use the amounts reported in column C to complete lines
1 through 11 of Form NJ-1065 or column A of Schedule • Pass-Through Business Alternative Income Tax –
L, if applicable. Enter on Form PTE-100, line 6.

Lines 1–11
Column A. Follow the instructions for lines 1–11 of the Schedule NJK-1
Individual, trust, and estate partners are subject to New
NJ-1065.
Jersey Gross Income Tax on their share of the partner-
Column B. Enter the portion of each amount reported in ship’s income, whether or not the income is actually
column A that was derived from other partnerships. For distributed. Partners who reside in New Jersey are taxed
each line, this will be the sum of the amounts reported on their share of the partnership’s income, regardless of
for the corresponding category on the federal Schedule the source of the income. Nonresident partners are also
K-1(s) furnished to your partnership by each subsidary subject to New Jersey Gross Income Tax on their share
partnership in which it is a member. of the partnership’s income, but only to the extent such
income is allocated to New Jersey.
Column C. For each line 1 through 11, subtract the
amount reported in column B from the amount reported If the partnership has met hedge fund status and has
in column A. Enter the difference in column C of that checked the hedge fund box listed on the partner’s
line and on the corresponding line on the front of Form Schedule NJK-1, the nonresident individual, trust, or
NJ-1065 or in column A of Schedule L, if applicable. Fol- estate partner is not required to report the New Jersey
low the instructions for lines 1 through 11 of the NJ-1065. source amount income from column B of their Schedule
NJK-1 on their nonresident Gross Income Tax return.

Part II Schedule NJK-1 provides each partner with information
Line 12
regarding that partner’s share of partnership income. A
Check the box to indicate if you received a Schedule
Schedule NJK-1 must be completed for every partner
NJK-1. List the Name, Federal EIN, and Distributive
that was a partner in the partnership at any time during
Share of Partnership Income or Loss reported on line 4,
the year.
columns A and B of Part II and/or Net gain (Loss) From
Disposition of Assets as a Result of a Complete Liquida- Partners must be furnished with a copy of their Sched-
tion reported on line 1 of Part III of each Schedule NJK-1 ule NJK-1 on or before the due date of the partnership
this partnership received from another partnership. If you return (NJ-1065). If a partnership interest is held by a
did not receive a Schedule NJK-1, you will have to use nominee on behalf of another person, the partnership is
the information from your federal Schedule K-1 to com- required to furnish Schedule NJK-1 to the nominee.
plete Reconciliation Worksheet A to determine the proper
amount to report as your distributive share of partner- A copy of all NJK-1(s) must be retained by the partner-
ship income for New Jersey purposes. See publication ship as part of the partnership’s records.
GIT-9P, Partnership Income.
Enter on line 12, column D, the Share of Pass-Through Part I – General Information
Name and Address
Business Alternative Income Tax from each Schedule
Enter the name and address of both the partner and the
PTE-K-1 received from partnerships.
partnership. Enter the federal employer identification
Line 13 number (FEIN) of the partnership and, if the particular
Add the amount(s) on line 12, columns A, B, C, and D partner is an entity other than an individual, enter the
and enter the result on line 13, columns A, B, C, and FEIN of the partner as well. If the partner is a person,
D. Carry totals in columns A and B to line 20 of Form enter their Social Security number. If the partner is an
NJ-1065. Individual Retirement Arrangement (IRA), enter the
identification number of the custodian of the IRA, not the
Line 14 Social Security number of the person for whom the IRA
If there is an amount on line 13, column D, indicate how is maintained. If the partner is a disregarded entity, enter
that amount will be applied. Select only one. the FEIN, name, and address of the beneficial owner of
the DE.
• Allocated to the partners – Enter the amount allocated
to each partner on Form NJ-1065, Partners Directory, If spouses each had an interest in the partnership, pre-
pare a separate Schedule NJK-1 for each spouse. If

- 14 -

14
spouses held an interest together as one partner, pre- Line 2 – Net Guaranteed Payments
pare one Schedule NJK-1. Enter on line 2, column A, the partner’s amount of net
guaranteed payments reported on line 22c, column A,
Classification of Partner NJ-1065.
Use the codes listed in the instructions for column A of
the Partner’s Directory. Enter on line 2, column B, the amount from column A
multiplied by the business allocation percentage from
Date Partner’s Interest in Partnership Began line 16b, NJ-1065.
Enter the month, day, and year the partner obtained an
interest in this partnership. Line 3 – Partner’s 401(k) Contribution
Enter on line 3, column A, the amount of the partner’s
Disregarded Entities contribution to a 401(k) plan. Do not include contribu-
If the partner is a DE, such as a single member LLC that tions in excess of federal limits and taxable for federal
did not elect to be treated as a corporation, check the income tax purposes on this line.
box and enter the name and federal EIN of the DE.
Enter on line 3, column B, the amount from column A
Partner’s Profit, Loss, and Capital Sharing multiplied by the business allocation percentage from
Percentages line 16b, NJ-1065.
Enter in column (ii), the appropriate percentages as of
the end of the partnership’s year. However, if a partner’s Line 4 – Distributive Share of Partnership Income
interest terminated during the year, enter in column (i) (Loss)
the percentages that existed immediately before the ter- Add lines 1 and 2, column A, then subtract line 3,
mination. When the profit or loss sharing percentage has column A from this result. Enter the remainder on line 4,
changed during the year, show the percentage before column A.
the change in column (i) and the end-of-year percentage
in column (ii). If there are multiple changes on the profit Add lines 1 and 2, column B, then subtract line 3, col-
and loss sharing percentage during the year, attach a umn B from the result. Enter this amount on line 4, col-
statement giving the date and percentage before each umn B.
change.
Line 5 – Pension
“Capital Ownership” means the portion of the capital that Enter on line 5, column A, the partner’s share of guar-
the partner would receive if the partnership was liqui- anteed payments – pension reported on line 22b,
dated at the end of the year and the undivided interests column A, NJ-1065. The partner to whom the guaranteed
in the partnership’s assets and liabilities were distributed. payment was made must be receiving the payment as a
result of a period of service to the partnership pursuant
to a retirement agreement or pension plan.
Part II – Income Information
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 in-
nonresidents is not subject to New Jersey Gross Income
come, gain, or loss from all sources as reported in
Tax.
column A, NJ-1065. The partner’s share shall be de-
termined by the partnership agreement in the same Line 6 – Net Gain (Loss) from the Disposition of
manner as the partner’s distributive share of partnership Assets as a Result of a Complete Liquidation
income is determined for federal income tax purposes. Enter on line 6, column A, the partner’s share of the net
Column A, Schedule NJK-1, must be completed for ev- gain (loss) from the disposition of assets as a result of
ery partner, regardless of residency. a complete liquidation reported on line 23, column A,
NJ-1065.
The amounts reported in column B, Schedule NJK-1,
represent the partner’s share of the partnership’s in- Enter on line 6, column B, the partner’s share of the net
come, gain, or loss allocated to New Jersey as reported gain (loss) from the disposition of assets as a result of
in column B, NJ-1065. Column B, Schedule NJK-1, a complete liquidation reported on line 23, column B,
should be completed for all partners. NJ-1065.
Line 1 – Partnership Income (Loss)
Enter on line 1, column A, the partner’s share of part- Part III – Partner’s Information
nership income or loss reported on line 21, column A, Line 1 – Nonresident Partner’s Share of New Jersey
NJ-1065. Tax
Enter on line 1 the partner’s share of New Jersey tax
Enter on line 1, column B, the partner’s share of part- reported in either column J or column K of the Partners
nership income or loss reported on line 21, column B, Directory.
NJ-1065.

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15
If an amended Schedule NJK-1 is filed, do not report The average value of property owned is determined by
less than the amount reported on the original Schedule adding (1) the book value of the property at the begin-
NJK-1. ning of the tax year and (2) the book value of the prop-
erty at the end of the tax year and dividing the sum by
Line 2 – Partner’s HEZ Deduction two.
If the partnership is a qualified primary care medical or
dental practice located in or within 5 miles of a Health The average value of property rented or leased is val-
Enterprise Zone (HEZ), the partnership must determine ued at eight times the annual rent. Rent includes any
if the partners are entitled to an HEZ deduction and the amounts paid in addition to, or accrued in lieu of, rent for
amount. The partner’s deduction is entered on the part- the period covered by the return (such as interest, taxes,
ner’s Schedule NJK-1 and deducted on the partner’s insurance, and repairs).
Gross Income Tax return. See the Division’s website for
qualification and calculation information. Line 1 – Real Property Owned
Column A. Enter on line 1, column A, the average value
Enter the partner’s HEZ deduction. of the real property listed in Section 1 that was owned
for the period covered by the return. Include property lo-
Line 3 – Partner’s Sheltered Workshop Tax Credit cated both inside and outside New Jersey.
Enter on line 3 the partner’s share of the Available Shel-
tered Workshop Tax Credit from line 8 of the Partner- Column B. Enter on line 1, column B, the average value
ship’s Schedule B, Sheltered Workshop Tax Credit. of the real property listed in Section 1 that was owned in
the State. Include only property located in New Jersey.
Line 4 – Share of Pass-Through Business Alternative
Income Tax Line 2 – Real and Tangible Property Rented
Enter on line 4 the partner’s Share of Pass-Through Column A. Enter on line 2, column A, the average value
Business Alternative Income Tax reported in column L of of property, both real and tangible, that was rented for
the Partners Directory. the period covered by the return. Include property lo-
cated both inside and outside New Jersey.
Part IV
Supplemental Information Column B. Enter on line 2, column B, the average value
Attach a separate schedule to provide any detailed infor- of property, both real and tangible, that was rented in the
mation affecting the partner’s share of income, such as State. Include only property located in New Jersey
IRC §754 adjustments.
Line 3 – Tangible Personal Property Owned
Column A. Enter on line 3, column A, the average value
of the tangible personal property that was owned and
Business Allocation Schedule
used in the business for the period covered by the re-
NJ-NR-A turn. Include property located both inside and outside
If business activities are carried on both inside and out- New Jersey.
side New Jersey, business income may be allocated
to determine the amount of income from New Jersey Column B. Enter on line 3, column B, the average value
sources. of the tangible personal property that was owned and
used in the business in the State. Include only property
Be sure that the NJ-NR-A is enclosed with located in New Jersey.
the NJ-1065 and that the name and address on the
Business Allocation Schedule agree exactly with the Line 4 – Totals
name and address on the return. Column A. Add lines 1–3 of column A and enter the total
on line 4, column A.
Section 1 – Business Locations
Use Section 1 to list the locations where the business Column B. Add lines 1–3 of column B and enter the to-
activities are conducted. In columns (a) and (b), list the tal on line 4, column B.
exact locations at which the business carries on activi-
ties both inside and outside the State. List all business Section 3 – Business Allocation Percentage
locations. In column (c), describe the places listed in Use Section 3 to determine the business allocation per-
columns (a) and (b) (i.e., branch office, agency, factory, centage that must be applied to business income. The
warehouse, etc.). In column (d), indicate whether the business allocation percentage must be applied to busi-
business rents or owns each location listed. Attach addi- ness income from all sources to determine the amount
tional sheets if necessary. from New Jersey sources.

Section 2 – Average Values
Use Section 2 to determine the average value of your
business assets.

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16
Line 1 – Average Values of Property Line 4 – Sum of New Jersey Percentages. Add lines
Line 1a – In New Jersey. Enter on line 1a the average 1c, 2c, and 3c and enter the total on line 4.
values of the business property in New Jersey from
line 4, column B, Section 2. Line 5 – Business Allocation Percentage. Divide the
total on line 4 by three and enter the result on line 5.
Line 1b – Everywhere. Enter on line 1b the average Also enter this percentage on line 16b, NJ-1065.
values of the business property from everywhere (both If one of the fractions (property, receipts, or payroll) is
inside and outside New Jersey) from line 4, column A, missing, the other two percentages are added and the
Section 2. sum is divided by two. If two of the fractions are missing,
the remaining percentage may be used as the allocation
Line 1c – Percentage in New Jersey. Divide the
factor. A fraction is not missing merely because its nu-
amount on line 1a by the amount on line 1b. The result
merator is zero, but is missing if its denominator is zero.
will be 100% or less. Enter the result on line 1c.

Line 2 – Total Receipts From All Sales, Services, and
Other Business Transactions
Line 2a – In New Jersey. Enter on line 2a the total of
receipts from all sales made, services performed, and
business transactions conducted in New Jersey during
the period covered by the return. This includes sales
made and services performed by partners, employees,
agents, agencies, or independent contractors of the
business situated at, or sent out from, the offices of the
business (or its agencies) located in New Jersey. For
example, if a salesperson working out of the New Jersey
office covers the states of New Jersey, New York, and
Pennsylvania, all sales made are to be allocated to New
Jersey and reported on line 2a.

Line 2b – Everywhere. Enter on line 2b the total of
receipts from all sales made, services performed, and
business transactions conducted both inside and outside
New Jersey during the period covered by the return.

Line 2c – Percentage in New Jersey. Divide the
amount on line 2a by the amount on line 2b. The result
will be 100% or less. Enter the result on line 2c.

Line 3 – Wages, Salaries and Other Personal
Compensation Paid During the Year
Line 3a –In New Jersey. Enter on line 3a the total of
wages, salaries, and other personal compensation paid
to employees in connection with operations carried on
in New Jersey during the period covered by the return.
Compensation is paid in connection with operations
carried on in New Jersey if work is based in an office or
other place of business located in New Jersey. Include
only amounts paid to employees on line 3a. Do not in-
clude payments to independent contractors, independent
sales agents, etc.

Line 3b – Everywhere. Enter on line 3b the total com-
pensation paid to employees both inside and outside
New Jersey during the period covered by the return. Do
not include payments to independent contractors, inde-
pendent sales agents, etc.

Line 3c – Percentage in New Jersey. Divide the
amount on line 3a by the amount on line 3b. The result
will be 100% or less. Enter the result on line 3c.

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