New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 7 - CORPORATION BUSINESS TAX ACT
Subchapter 5 - ENTIRE NET INCOME; DEFINITION, COMPONENTS AND RULES FOR COMPUTING
Section 18:7-5.4 - Factors not adjustable to Federal taxable income
Universal Citation: NJ Admin Code 18:7-5.4
Current through Register Vol. 56, No. 18, September 16, 2024
(a) No adjustment to Federal taxable income is permitted under this rule for:
1. Gains or losses not recognized for Federal
income tax purposes under I.R.C. § 351 or similar sections but only to the
extent that recapture or other provisions of the Code are not paramount to these
sections.
2. The general business credit
allowed or allowable for Federal income tax purposes under I.R.C. § 38.
i. This may not be taken as a deduction in
computing the New Jersey net income tax base, nor as a credit, in any manner, in
computing tax liability under the Corporation Business Tax Act.
ii. Upon disposition of assets which qualified for
a general business credit under I.R.C. § 38, taxpayer must use the same basis
for computing gain or loss for New Jersey net income tax purposes as employed for
Federal income tax purposes.
3. Depreciation attributable to a decrease in the
basis of depreciable property for Federal income tax purposes, as a result of the
general business credit allowed or allowable under I.R.C. § 38.
i. This depreciation may not be taken as a
deduction in computing the New Jersey net income tax base.
ii. Depreciation taken for New Jersey net income
tax purposes must be reported at the same amount as reported for Federal income tax
purposes for the same period.
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