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Note: Line 8 of Schedule M-2 must correspond with the unap- fees, (4) licensing fees, and (5) other similar expenses and
propriated retained earnings reported for the end of the costs.
tax year on Schedule B.
Intangible Property means patents, patent applications, trade
If the taxpayer is part of a consolidated filing but is filing a sep- names, trademarks, service marks, copyrights, mask works,
arate return in New Jersey, the taxpayer must provide a copy trade secrets and similar types of intangible assets.
of the Schedule M-3 that was filed federally and a rider detail-
ing the separate entity basis calculation. Intangible Interest Expenses and Costs means amounts
directly or indirectly allowed as deductions under I.R.C. § 163
for purposes of determining taxable income under the code to
the extent such expenses and costs are directly or indirectly
Schedule F
for, related to, or in connection with the direct or indirect acqui-
General Information and Compensation sition, maintenance, management, ownership, sale, exchange
All applicable information should be provided for each corpo-
rate officer regardless of whether compensation was received. or disposition of intangible property.
The date reported on Schedule F must match what is reported
Part I – Interest
on federal Form 1125-E.
Interest paid, accrued, or incurred to related members that
was deducted in computing taxable net income on line 28,
Part I, Schedule A, must be reported on Schedule G, Part I. If
Schedule G the taxpayer is claiming an exception to the disallowance, com-
Interest plete and include Schedule G-2, and include the appropriate
If the taxpayer is claiming an exception to the disallowance of amount on Schedule G, Part I, line 1b. Schedule G-2 is available
the expense reported in Part I or Part II of Schedule G, the tax- on the Division’s website.
payer must complete and include Schedule G-2. Schedule G-2
is available on the Division’s website. Do not include interest expenses and costs that were deducted
directly or indirectly for, related to, or in connection with the
Definitions direct or indirect acquisition, maintenance, management, own-
Related member means a person that, with respect to the ership, sale, exchange, or disposition of intangible property in
taxpayer during all or any portion of the tax year is (1) a related Part I of Schedule G.
entity, (2) a component member as defined in subsection (b) of
I.R.C. § 1563, (3) a person to or from whom there is attribution Part II – Interest expenses and costs and intangible ex-
of stock ownership in accordance with subsection (e) of I.R.C. penses and costs
§ 1563, or (4) a person that, notwithstanding its form of organi- Interest expenses and costs and intangible expenses and
zation, bears the same relationship to the taxpayer as a person costs directly or indirectly paid, accrued, or incurred to, or in
described in (1) through (3) of this definition. connection directly or indirectly with one or more direct or in-
direct transactions with one or more related members which
Related entity means (1) a stockholder who is an individual were deducted in computing taxable net income on line 28,
or a member of the stockholder’s family enumerated in I.R.C. Part I, Schedule A, must be reported on Schedule G, Part II. If
§ 318, if the stockholder and the members of the stockholder’s the taxpayer is claiming an exception to the disallowance, com-
family own, directly, indirectly, beneficially or constructively, plete and include Schedule G-2, and include the appropriate
in the aggregate, at least 50% of the value of the taxpayer’s amount on Schedule G, Part II, line 1b. Schedule G-2 is avail-
outstanding stock; (2) a stockholder, or a stockholder’s partner- able on the Division’s website.
ship, limited liability company, estate, trust or corporation, if the
stockholder and the stockholder’s partnerships, limited liability
companies, estates, trusts and corporations own directly, indi-
Schedule H
rectly, beneficially or constructively, in the aggregate, at least
50% of the value of the taxpayer’s outstanding stock; or (3) a Taxes
Itemize all taxes that were in any way deducted in arriving at
corporation, or a party related to the corporation in a manner
taxable net income, whether reflected in Schedule A, Part I at
that would require an attribution of stock from the corporation
line 2 (Cost of goods sold and/or operations), line 17 (Taxes),
to the party or from the party to the corporation under the
line 26 (Other deductions) or anywhere else on Schedule A.
attribution rules I.R.C. § 318, if the taxpayer owns, directly, in-
directly, beneficially or constructively, at least 50% of the value
of the corporation’s outstanding stock. The attribution rules of
I.R.C. § 318, shall apply for purposes of determining whether Schedule J
the ownership requirements of this definition have been met. Computation of Allocation Factor
If taxpayer does not have receipts outside New Jersey, the al-
Intangible expenses and costs includes (1) expenses, location factor will be 100% (1.000000) and there is no need to
losses, and costs, for, related to, or in connection directly or in- complete this schedule. All other taxpayers must complete this
directly with the direct or indirect acquisition, use, maintenance schedule to calculate the allocation factor.
or management, ownership, sale, exchange, or any other dis-
position of intangible property to the extent such amounts are Only activities related to operational activity are to be used in
allowed as deductions or costs in determining taxable income computing the general allocation factors. If the taxpayer has
before operating loss deduction and special deductions for the nonoperational activity, see Schedule O. If the taxpayer has
tax year under the federal Internal Revenue Code of 1986, 26 nonunitary partnership income, see Schedule P-1.
U.S.C. s.1 et seq., (2) losses related to, or incurred in connec-
tion directly or indirectly with factoring transactions or discount-
ing transactions, (3) royalty, patent, technical and copyright
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