![]() Which entities may elect to pay the Pass-Through Business Alternative Income Tax? The entity must make an election to pay the Pass-Through Business Alternative Income Tax each year. ![]() Must the entity make an election to pay the Pass-Through Business Alternative Income Tax each year? Partners with a calendar year end of 12/31/22 will claim credit for their share of the 2021 BAIT on their 2022 New Jersey tax returns. A partnership with a fiscal year of 10/1/21–9/30/22 will file a 2021 PTE-100. The revisions to the BAIT law are effective as of January 1, 2022, and therefore do not apply to a partnership with a fiscal year of 10/1/21–9/30/22. A member's share of distributive proceeds is based on the information reported on the entity's Form NJ-1065 or CBT-100S which includes an add back for taxes based on income.įor a partnership having a fiscal year of 10/1/21-9/30/22 and partners with a calendar year end of 12/31/22, will the recent revisions to the original BAIT law apply? Should the Pass-Through Business Alternative Income Tax be added back and included in Distributive Proceeds on Form PTE-100? The Pass-Through Business Alternative Income Tax is a tax based on income and should be added back to partnership and S corporation income on Line 13a of Form NJ-1065 or on Line 4b, Schedule K of Form CBT-100S. ![]() Should the Pass-Through Business Alternative Income Tax that was deducted for federal tax purposes be added back to partnership and S corporation income on the NJ-1065 and CBT-100S returns? The Pass-Through Business Alternative Income Tax is elective. ![]() Is the Pass-Through Business Alternative Income Tax mandatory? The member(s) may then claim a tax credit for the amount of tax paid by the pass-through entity on their share of distributive proceeds. However, for taxable years beginning on or after January 1, 2020, pass-through entities may elect to pay a Pass-Through Business Alternative Income Tax due on the sum of each of the member’s share of distributive proceeds. What is the Pass-Through Business Alternative Income Tax?įor New Jersey tax purposes, income and losses of a pass-through entity are passed through to its members. ![]()
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