Open topic with navigation

CCH Axcess Tax

Introduction to the New Jersey Corporate Return

The New Jersey corporate income tax return is prepared for calendar, fiscal and short year corporations. Using entries from the federal tax return and New Jersey sections, the following forms are prepared for the New Jersey return:

• Form CBT-100, New Jersey Corporation Business Tax Return
• Form BFC-1, New Jersey Corporation Business Tax Return for Banking and Financial Corporations
• Form CBT-100-V, Corporation Business Tax Payment Voucher
• Schedule G-2, Claim for Exceptions to Disallowed Interest and Intangible Expenses and Costs
• Schedule I, Certification of Inactivity
• Schedule N, Nexus-Immune Activity Declaration
• Schedule O, Nonoperational Activity Schedule
• Form CBT-150C, New Jersey Corporation Statement of Estimated Tax
• Form BFC-150, New Jersey Statement of Estimated Taxes (Form BFC-1)
• Form CBT-160-A, New Jersey Corporation Underpayment of Estimated Tax (Corporations under $50,000,000 in gross receipts)
• Form CBT-160-B, New Jersey Corporation Underpayment of Estimated Tax (Corporations with $50,000,000 or more in gross receipts)
• Form BFC-160-A, New Jersey Corporation Underpayment of Estimated Tax (Corporations under $50,000,000 in gross receipts)
• Form BFC-160-B, New Jersey Corporation Underpayment of Estimated Tax (Corporations with $50,000,000 or more in gross receipts)
• Form CBT-200-TC, Tentative Return and Application for Extension
• Form BFC-200-T, Tentative Return and Application for Extension
• Form 300, Urban Enterprise Zone Employees Tax Credit and Credit Carry Forward
• Form 301, Urban Enterprise Zone Investment Tax Credit and Credit Carry Forward
• Form 302, Redevelopment Authority Project Tax Credit
• Form 303, Recycling Equipment Tax Credit
• Form 304, New Jobs Investment Tax Credit
• Form 305, Manufacturing Equipment and Employment Investment Tax Credit
• Form 306, Research and Development Tax Credit
• Form 307, Smart Moves for Business Program Tax Credit
• Form 308, Small NJ-Based High-Technology Business Investment Tax Credit
• Form 310, HMO Assistance Fund Tax Credit
• Form 312, Effluent Equipment Tax Credit
• Form 313, Economic Recovery Tax Credit
• Form 314, Remediation Tax Credit
• Form 315, AMA Tax Credit
• Form 401, Key Corporation and Affiliates Claiming AMA Threshold Limit
• Form 500, Net Operating Loss Deduction and Carryover
• Form 501, Domestic Production Activities Deduction

A copy of the federal return is provided for filing with the New Jersey return. This copy may be suppressed by making an entry on General Information, "Suppress federal return copy".

Frequently Asked Questions (FAQs)

Some of the most frequently asked questions regarding how we prepare the New Jersey return are available through the Frequently Asked Questions menu.

Minimum Tax Computation

For years beginning in 2006, the minimum tax amount charged by the state of New Jersey is graduated based on the allocated New Jersey gross receipts. This may result in a substantial increase to the minimum tax paid by the corporation from prior years.

For years beginning in 2007, the new minimum tax amounts are as follows:

• if gross receipts are less than $100,000, the minimum tax is $500;
• if gross receipts are $100,000 or more but less than $250,000, the minimum tax is $750;
• if gross receipts are $250,000 or more but less than $500,000, the minimum tax is $1,000;
• if gross receipts are $500,000 or more but less than $1,000,000, the minimum tax is $1,500;
• if gross receipts are $1,000,000 or more, the minimum tax is $2,000.

For corporations who are members of an affiliated or controlled group with aggregate payroll of $5,000,000 or more, the minimum tax remains at $2,000. You must make an entry on New Jersey General Information section if this applies to the corporation and gross receipts are less than $1,000,000.

To determine the gross receipts for purposes of the minimum tax calculation, we first look to the amounts entered for New Jersey receipts for purposes of Schedule J, Allocation and Apportionment. If the apportionment percentage used is 100%, we will use the amounts entered for Part I of Schedule AMA. If there are no entries for Schedule AMA, we default to the federal gross receipts.

Federal Information and Automatic Features

Consolidated Returns

New Jersey does not allow consolidated or combined returns. Each member of the group must file a separate return. This return can be produced by processing a New Jersey return with each of the parent and subsidiary returns. Do not process a New Jersey return with the consolidated return.

FS Codes

The New Jersey return computes New Jersey income from federal entries. Except as noted, the use of FS codes is not required to prepare the New Jersey corporate return. All income and expenses included on federal forms carry to the New Jersey return. Generally, additions and subtractions to federal income are handled through entries on New Jersey forms.

FS coding is available on federal gain and loss input to compute the excess of accumulated ACRS and MACRS over accumulated New Jersey depreciation on the physical disposal of recovery property. Do not use the FS codes when the automatic sale feature is being used. Refer to the federal instruction guide for depreciation for more information on using the automatic sale feature. For non-automatic sales, you must enter the New Jersey sale information using "S" in the FS Code field, and "NJ" in the state code field. Enter the amount of the New Jersey depreciation in the "Total Depreciation" field. Enter the federal amount of depreciation on the "State Use" field.

New Jersey does not read FS coding on passthrough entities. If a passthrough amount is allocable to another state, you must complete Schedule O for New Jersey and re-enter the applicable passthrough amounts on the New Jersey nonoperational income input. Override entries for this calculation are available.

You must enter the FS code and State code to compute the allowable contribution carryover and net operating losses for New Jersey. These entries are made at the federal level.

Automatic Transfers. The following items from the federal return are handled automatically on the New Jersey return and do not require additional entries on state input:

• Municipal Bond Interest
• Balance Sheet Information (optional overrides available)
• State taxes paid or accrued and state tax refunds
• Section 199 deduction

Schedule M-3

New Jersey requires a copy of the federal Schedule M-3 to be filed with the New Jersey CBT-100 when it is produced for the federal Form 1120. The system will automatically produce this copy. The Form CBT-100, Schedule C must continue to be completed regardless of the federal schedule used (M-3 or M-1). Due to differences in the calculations of these two schedules, however, you may need to make an entry on federal L/M-1/M-2/M-3 worksheet, Schedule M-3 section, "Carry book/tax differences to Schedule M-1". The federal Schedule M-1 does not need to be forced to print if this is necessary.

State Common Data

The State Common Data provides a centralized location to create state returns and to enter data common to all states and cities. Following is a description of each series of input and how they interact with processing a New Jersey return.

State/City Generation: A state or city return may simply be processed by selecting the states or cities you wish to include with your federal return on the State/City Generation worksheet under the Common State category. No additional entries on state/city input are required. This provides a centralized location to manage your single or multi-state returns.

If you wish to delete a state or city from your return after you have created and processed it using the State/City Generation input, uncheck the applicable field on this input and use the Delete State feature in the Edit menu.

General Information: These forms are used to enter data common to all state and city returns. They provide a centralized location and generic format to simplify entering state and city data. Not all state and city data is contained here. Fields which are unique or not shared by a group of entities are still located on the state and city input.

When using this input, an entry is mandatory in the State/City Code field. Presence of data on this form will NOT create a state or city return. To create a state or city return, you must check the box for that state or city on the State/City Generation input (see above) or make entries on the state's input forms.

You may designate data to apply to a particular state/city return or you can indicate for it to apply to all of the state/city returns present. To flag your entries for a particular state/city, enter the state/city code in the State/City code field. To apply your input to all states and cities present enter "ALL" in the State/City Code field.

There are 3 levels of default for the General Information input. The first level is to the Basic Data entered with the federal return. This applies only to selected fields, specifically, those followed with the word "override" on the description of the field. For example, if no entries are made on General Information for the date of incorporation, the states/cities will default to the incorporation date on the federal Basic Data worksheet.

The second level is to Common Data input with a state/city code of "ALL". This means it applies to every state and city in the return, unless a unique state/city code is present. For example, if you make an entry for the incorporation date on the General Information section of the State/City Common Data worksheet which is different from the federal, all the states will default to the "ALL" coded date and ignore the federal date. However, if a General Information entry is also present with a different date and a state code of "NJ", then New Jersey will pick up the "NJ" coded date and ignore the federal date and the General Information entry coded "ALL".

The third level is to the General Information input with a specific state/city code. If both "ALL" and a state/city specific entry is made, data must be present in a particular field of the unique state/city entries or the default to the "ALL" entry will still take place. For example, you have entered General Information coded with "ALL" which contains an entry for the Telephone Number. You have also entered a General Information entry coded "NJ" and make only one entry to indicate that it is an initial return for New Jersey. The New Jersey program will pick up your initial return entry and also the telephone number from your "ALL" entry, since no telephone number was entered with the New Jersey input.

New Jersey uses the following fields on the federal State/City Common Data worksheet:

• Account/file number
• Amended return - override
• Initial return - override
• Final return - override
• Request 2D barcode if applicable
• Date of Incorporation - override
• Date business commenced in state
• Telephone number - override
• Name or address change - override
• Where incorporated - override
• Principal business activity - override
• Principal product or service - override
• Business code - override
• In care of, contact name, or signor name
• Title - override
• Contact information - street, city, state and ZIP code
• Principal business address - street, city and ZIP code (but not the state - principal business addresses for New Jersey must be located within New Jersey)

State Tax Payments: Use the State Tax Payments worksheet under the Payment/Penalty category to enter estimated tax payments, withheld amounts, and various other tax payments for New Jersey. An entry in the State Code field is mandatory. Not all fields apply to all states. Once an entry of "NJ" is made in this field, we will allow you to only land on those fields which are applicable to New Jersey. Presence of data on this form will NOT create a state return. Payments entered here are used to calculate any underpayment of estimated taxes, and also are included on the state return as payments of current year tax.

Taxes Paid Based on Income and/or Not Based on Income: If you have identified yourself as a Cash Basis taxpayer, your entries in the columns for Taxes Based on Income and/or Not Based on Income will be carried to the Taxes and Licenses deduction line on page 1 of the federal return. We identify you as a Cash Basis taxpayer if your accounting method is identified on the Miscellaneous Information section of the Basic Data worksheet, and the State Tax Accrual option has NOT been selected. Your entries here will also be used by New Jersey in arriving at the applicable state tax deductions and/or addbacks to federal income. Any entries on the Taxes and Licenses section of the Business worksheet will be in addition to your entries in these fields. You may override this treatment of detailed state and city tax payments for all states in your return by making an entry in the "Suppress Carrying of Detailed State/City Tax Payments for Cash Basis Taxpayers on the Processing Options section of the Return Options worksheet or by selecting the same option in the Return Configuration Set. You may also suppress this treatment on a state by state basis by making an entry on the field entitled "Suppress Carrying of this state's tax payments" on the State Tax Payments worksheet.

If you are an Accrual Basis taxpayer, your entries in the columns for Taxes Based on Income and/or Not Based on Income will NOT be carried to the Taxes and Licenses deduction on page 1 of the federal return or used to determine any state addbacks or tax deductions. We identify you as an Accrual Basis taxpayer if your accounting method is identified as accrual on the Miscellaneous Information section of the Basic Data worksheet, or the State Tax Accrual option has been selected on the Processing Option section of the Basic Data worksheet.

Tax Accrual: State taxes carry to the federal return at your option; they do not carry automatically. New Jersey taxes computed on the New Jersey return carry to page 1 of the federal return if you enter a "1" in the "State and City Tax Accrual Option" field in the "Calculation Options" section of the federal processing options. This entry also accrues the tax to the appropriate sections of the federal balance sheet. If State Tax Accrual Option 3 is selected, state taxes carry to the rental schedule instead of page 1 of the federal return.

If you choose State Tax Accrual Option 2, state taxes computed on the New Jersey return carry to page 1 of the federal return but do not accrue to the federal balance sheet. If required, the system automatically makes a Schedule M-1 book/tax adjustment. If you choose Option 4, state taxes carry to the rental schedule instead of page 1 of the federal return.

State Estimated Taxes: Enter the estimated tax information for New Jersey on the Estimates and Application of Overpayment worksheet under the Payment/Penalty category. Enter "NJ" in the State/City Code field. This is a required entry. No assumption to the state code is made by the program. Not all fields apply to all states. We will allow you to only land on those fields which are applicable to your entry in the State Code field. Presence of data in these fields will NOT create a state return.

Penalties: Use these forms to enter penalty information for New Jersey. Late interest and penalty information is entered on the State/City Interest and Penalty worksheet and underpayment of estimated tax data is entered on the State/City Underpayment Penalty worksheet in the Payment/Penalty category. Enter "NJ" in the State Code field. This is a required entry. No assumption to the state code is made by the program. Not all fields apply to all states. We will allow you to only land on those fields which are applicable to your entry in the State Code field. Presence of data in these fields will NOT create a state return.

Amended Returns

The transmittal letter and filing instructions will only print for states that are being amended. If there is a state in the return that is not being amended, or the federal return is not being amended, that state or the federal return will not be mentioned in the transmittal letter. Also, the cover letter is not prepared if any state return or the federal return is being amended.

Federal, State, and Municipal Bond Interest

New Jersey includes municipal bond interest from sources both inside and outside the state in New Jersey entire net income. Interest entered as state and local obligations (entered on federal Income/Deductions worksheet, Interest section) carries to New Jersey as an addition to federal taxable income. If this is a multi-state return and the corporation has municipal bond interest from different states, be sure to indicate the state source on the federal input.

To override our calculation, use Income and Deductions category, Additions worksheet.

State Income, Franchise and Other Taxes

State income taxes entered on the federal Income/Deductions category, Taxes and Licenses worksheet carry to New Jersey Form CBT-100, Schedule H, Column A.

Other taxes for New Jersey and other states are not computed for the Schedule H. You must enter the applicable amounts for other taxes on New Jersey Income/Deductions worksheet, Taxes section.

Foreign Taxes

Foreign taxes are not deductible in calculating New Jersey entire net income. Foreign taxes deducted at the federal level must be added back to New Jersey entire net income. This calculation is done on Schedule H, and the foreign taxes are combined with disallowed New Jersey and other state taxes for the adjustment made to Schedule A.

Net Operating Loss Carryover

New Jersey does not allow the federal net operating loss deduction. New Jersey net operating losses may usually be carried forward for seven (7) years. Some losses which may have been used in 2002 or 2003, but could not be utilized because of the NOL suspension, may be carried forward an additional 2 years. Net operating losses were limited in 2004 and 2005 to the greater of the NOL, or 50% of the entire net income before the NOL deduction. Net operating loss carryovers entered in federal Income/Deductions category, NOL Carryover worksheet carry to the New Jersey return. Detail entries for original losses and losses used must be entered on the federal level using the NOL Carryover worksheets. An overriding amount may be entered on New Jersey's Income/Deductions worksheet, Deductions section.

You must enter an "S" in the "FS" field and "NJ" in the "State" field to enter New Jersey net operating losses. Code "1" should also be entered in the "Type". Enter the entire net income before the NOL deduction from New Jersey CBT-100, Line 34 in the "Original carryover amount" field. Enter the "Year Originated". The "Year End Date" will fill in automatically based on the current year end entered on federal input. Enter any applicable losses used in the appropriate fields. New Jersey will pick up 9 years of losses, if applicable, so losses entered with a year beginning before 1998 will be ignored. If the 1998 loss does not qualify for a 2 year extension, check the "X if Expired" field.

Some high technology companies are allowed a 15 year net operating loss carryover for New Jersey purposes. If the corporation qualifies for a 15 year NOL carryover, make an entry in the "X if corporation qualifies for 15 year net operating loss carryover" on the New Jersey General Information worksheet, Options section. A statement showing the 15 years of carryover will be produced.

We calculate the amount of the income or loss that was originally reported on Schedule A, Line 28 from your entries by adding or subtracting the New Jersey modifications to the original loss amount. Net operating losses are summarized on Form 500.

Extensions (Form CBT-200-TC)

Form CBT-200-TC, Request for Extension of Time to File, will be processed when "NJ" is entered as the state code on the federal Other-Extensions worksheet, State/City Extensions section. Form CBT-200-TC uses the amounts from the New Jersey CBT forms to calculate the amount due with the extension. You may override the amount of tax on Line 1 by entering an amount on the Tentative Tax field. Enter a "1" on Special Code to calculate the installment payment on Line 2 if tax on Line 1 of Form CBT-200-TC is $500. If no entry is made here, or if the tax on Line 1 exceeds $500, this amount will be zero. Override the Key Corporation AMA payment by making an entry on the Total Payments from Key Corporations-Main Form column, and override the Key Corporation throw out payment in the MTA or Other Forms column. The tentative professional corporation fee is carried from Schedule PC, but may be overridden by making an entry on Other Taxes not Based on Income/Other Fees; the accompanying installment payment can be overridden using the Credits. The "Payments to date" amount on Form CBT-200-TC may be overridden by using Estimated or Installment Payments.

Form CBT-200-TC must be filed with the state by the original due date of the return.

Interest Rates

In general, New Jersey calculates the late payment interest and the underpayment interest using a modified prime rate, based on the number of months the payment is outstanding. These rates may vary from quarter to quarter. Rates are updated regularly, however this does not guarantee that the correct rate will always be in the program. To override the rate used for the late payment interest, use Penalties worksheet, Interest Rate Overrides section, Late Payment Interest Rate fields. You must also enter "NJ" in the state code field. To override the quarterly rates used to calculate the underpayment penalty, use the Underpayment of Estimated Tax Rates fields. Again, the state code must be entered.

Processing Schedule I (Inactive) Returns

Returns may be processed for inactive corporations (Schedule I) by entering a "1" on New Jersey General Information worksheet, Basic Data section, Code for Immune or Inactive Corporation. Requesting this schedule will produce Form CBT-100, Pages 1 and 4 with the minimum tax and installment payment. Payment information should be entered as usual, however Form CBT-160-A/B will not be produced. Estimates are not produced for these returns. Form CBT-100-V will be produced when the amount due is greater than zero. Form CBT-200-TC will be produced for this type of return when "NJ" is entered in the State Code of federal Other worksheet, Extensions section.

This field should also be used to produce inactive banking and financial corporation returns. If an entry is made here when Form BFC-1 is requested, Form BFC-1 Pages 1, 4 and 18 (Schedule I) with the minimum tax and installment payment will be produced. Form BFC-200-T will be produced for this type of return when "NJ" is entered in the State Code of federal Other worksheet, Extensions section. No other forms are produced for inactive BFC returns.

Processing Schedule N (Immune) Returns

To request Schedule N, Nexus-Immune Activity Declaration, enter a "2" on New Jersey General Information worksheet, Basic Data section, Code for Immune or Inactive Corporation. You must also make an entry on the "X if foreign corporation" field. Schedule N is not processed for New Jersey domestic corporations. All questions on Schedule N will be answered "No" by making an entry in these fields. You may override this treatment by using the government view override. A full CBT/BFC return is required for corporations requesting immunity from taxation in New Jersey, and all information requested for Form CBT-100/BFC-1 must be provided. The amount due is the greater of the minimum tax or the Alternative Minimum Assessment when all questions on Schedule N are answered "No". If any questions are answered "Yes" (by using the government view override), the tax due is the greater of the regular liability, or the Alternative Minimum Assessment.

Officer's Compensation & Other Information

New Jersey Schedule F, Corporate Officers - General Information and Compensation, is prepared from entries on federal and New Jersey input. The name, address, social security number, title, stock ownership and compensation information is carried from federal Income/Deductions category, Business worksheet, Compensation of Officers section. Entries must be made on New Jersey General Information - Officer Information for the dates of employment for each officer.

The officer number on the New Jersey input must correspond with the officer number on the federal input. Enter dates in MM/DD/YY format. Enter "99/99/99" to print the word "Present" in the "To Date" column of Schedule F.

The Schedule F information always prints in a statement.

Multiple State Apportionment and Allocation

When using the worksheet view, a detail code is entered for each category of item, for example Inventories, and the amount for each state is entered on the line for that state. The total everywhere amount will be computed as the sum of the entries for each state, plus entries on the lines for foreign and other. Detail codes are provided for each category of property, sales and payroll. Overrides are available to override the total everywhere amounts for each factor in the Total Everywhere Overrides worksheet.

Refer to the federal instruction guide section for Multi-State Processing for additional information.

The following entries are used in computing the New Jersey apportionment and allocation:

Use the Common State category, Apportionment worksheet, Property section to enter the following codes:

Nonbusiness income entries entered on federal allocation and apportionment input are ignored for New Jersey. For calculations of nonbusiness income, refer to the instructions for processing the New Jersey Schedule O.

Money Market Fund Dividends

To designate dividends on federal Income/Deductions-Dividends-Dividend Income as received from money market funds, use Category Code "DIV" on the Category field, and "1" in the State Use field. You must also enter "NJ" in the state code if this is a multistate return. Dividends entered in this manner will be subtracted from the total dividends to compute the amount on line 1 of CBT-100, Schedule R.

State and City Tax Refunds

Refund amounts entered on the federal Income/Deductions worksheet, Business-Income section, State and City tax refunds will carry to the Schedule A, Entire Net Income, as an "Other Deduction" in the New Jersey adjustments, regardless of whether New Jersey is the home state.

Detail entries of the applicable state refunds will be included in the "Other Deductions" statement.

The state entered on the federal basic data is assumed to be the state from which the refund was received, if the state code here is left blank.

Depreciation

New Jersey does not allow federal ACRS depreciation. New Jersey does not allow federal MACRS depreciation for assets placed in service in accounting periods beginning before 7/7/93. New Jersey does not allow federal bonus depreciation for assets placed in service in privilege periods beginning on or after 1/1/02 and before 12/31/04. New Jersey does allow federal Section 179 expense, however the amount of Section 179 which can be claimed for New Jersey is limited to $25,000 for assets placed in service on or after 1/1/04. Federal depreciation is calculated from depreciation entries on the "Federal Depreciation and Amortization" interview forms. Entries MUST be made to compute the New Jersey depreciation for assets placed in service after 12/31/80, and for MACRS assets placed in service in accounting periods beginning before 7/7/93 as described below. State if Different entries are not required for assets placed in service in years beginning before 2002, on which federal bonus depreciation was claimed.

Do not use federal depreciation input to override the New Jersey depreciation. New Jersey depreciation overrides on Income/Deductions worksheet, Depreciation and Depreciation Overrides section, should be used when overriding calculated depreciation. Depreciation overrides, including the state totals, entered at the federal level are ignored.

Depreciation is calculated from entries on federal depreciation worksheets. State depreciation entries should be used to enter any differences between federal and state entries required to properly calculate state depreciation, and to sort MACRS assets by their pre/post 7/7/93 accounting period placed in service. If a state depreciation entry is made for any MACRS asset, regardless of the date placed in service, we treat the asset as being placed in service in an accounting period beginning prior to 7/7/93. MACRS assets with no corresponding state depreciation entry will be assumed to qualify for New Jersey MACRS treatment, regardless of the date placed in service. The federal depreciation will be used for any other asset which does not have a state depreciation entry for New Jersey. To eliminate an asset entered on federal from state detail, enter a zero in the cost or basis field of the corresponding state depreciation entry.

Assets placed in service in years beginning on or after 1/1/02: Assets which are placed in service in the current year and which are using federal bonus depreciation under Section 168(k) do not require entries on state depreciation fields. Prior year bonus assets must have state depreciation entries made. The New Jersey depreciation for these assets is automatically calculated using regular MACRS depreciation, and the adjustment is included in the New Jersey return.

Assets placed in service on or after 1/1/04: Assembly Bill 3111 decoupled New Jersey from the federal Section 179 expense, limiting the allowable amount to $25,000 for New Jersey. An adjustment for federal Section 179 expense is made for assets placed in service on or after 1/1/04. No additional state-if-different entries are required on current year assets in the depreciation detail fields. The additional MACRS depreciation on the unexpensed New Jersey basis for these assets is calculated automatically, and the additional depreciation will be included on Schedule S, Line 12(b). Section 179 expense from passthrough entities such as partnerships will be treated as post 1/1/04 property, and subject to the limits. An override is available to override our computations of this adjustment. Assets placed in service in prior years may require state-if-different entries to properly sort them into the Schedule S and to calculate the correct New Jersey depreciation.

State if different depreciation can be entered for more than the home state. A State/Book code is available to identify any asset that is for a state or book entry other than the home state. If the State/Book code is left blank the default for this field uses the following hierarchy:

1. A code of "BK" is assumed if "X to treat state if different assets as book assets" is present.
2. The State/Book code is assumed to be the same state code entered on the corresponding entity (rentals, COGS, etc.) which the depreciation is attached to.
3. A code of "BK" is assumed when "F" is entered for the FS code and a state code is not present on the corresponding entity (rentals, COGS, etc.) which the depreciation data is attached to.
4. The State/Book code is assumed to be the "State Code" on Basic Data when S is entered for the FS code and the state code is not entered on the corresponding entity (rentals, COGS, etc.) which the depreciation is attached to.
5. The State/Book code is assumed to be the on Basic Data, "State Code".

There can be more than one state depreciation entry for each asset. This will allow an asset to use different depreciation methods in different states. A unique State/Book code is required for multiple state depreciation entries for the same asset number.

Depreciation for Public Utility Companies

Schedule S, Part III, New Jersey Depreciation for Gas, Electric, and Gas and Electric Public Utilities, is prepared in lieu of Schedule S, Parts I and II, when "X if this is a gas, electric or gas and electric public utility" is checked. Detail information entered on federal depreciation worksheets is used to compute the amount of federal depreciation for assets placed in service after 1/1/98. You must enter the federal depreciable basis as of 12/31/97 on "State Use Only", and the excess book depreciation on "State Use Amount". The accumulated federal basis for all Single Asset Account property sold, retired or disposed of must be entered on New Jersey Depreciation and Depreciation Overrides. This amount is not computed from the federal return.

Detail statements showing are prepared for assets placed in service prior to and after 1/1/98.