N.J. Admin. Code § 18:7-7.1

Current through Register Vol. 56, No. 9, May 6, 2024

Section 18:7-7.1 - General instructions regarding allocation of net income

(a) No corporation, foreign or domestic (other than a corporation entitled and electing to report as an investment company, regulated investment company or real estate investment trust) is entitled to allocate any part of its entire net income outside New Jersey unless during the period covered by the return it maintained a regular place of business outside the State. Notwithstanding the foregoing, for privilege periods beginning on or after July 1, 2010, a corporation is not required to maintain a regular place of business outside New Jersey in order to allocate any part of its entire net income outside New Jersey.

(b) In the absence of a regular place of business, 100 percent of its entire net income must be allocated to New Jersey.

(c) The mere ownership of assets outside New Jersey does not constitute a basis for allocating less than 100 percent of the taxpayer's net income to New Jersey.

(d) Where the taxpayer does not maintain a regular place of business outside New Jersey and its allocation factor is 100 percent and the taxpayer in fact pays a tax based on or measured by income to another state, see 18:7-8.3 which provides for the eligibility and method in computing a reduction in the tax for such taxpayer.

N.J. Admin. Code § 18:7-7.1

Amended by R.1985 d.54, effective 2/19/1985.
See: 16 N.J.R. 2999(b), 17 N.J.R. 476(b).
"Corporation" substituted for "taxpayer" and added "or real estate investment trust."
Amended by R.1994 d.186, effective 4/18/1994.
See: 26 N.J.R. 761(a), 26 N.J.R. 1696(b).
Amended by R.2009 d.384, effective 12/21/2009.
See: 41 N.J.R. 3401(a), 41 N.J.R. 4825(a).
In (a), inserted the last sentence.