Business & farm

Answer to the questions:

 

  • NJ will use your federal K-1 amounts since you are a resident.  Is there a loss on the federal K-1? Yes, there is a loss on the federal K-1 (less than 2,000).
  • Are you passive or a material participant in the activity? Material participant
  • Are you saying that the K-1 amount reduces the federal but is not reducing NJ? Yes, that's correct. Just want to make sure I understand the issue.
  • If bullet 3 is"yes" you are indicating that a loss is reflected on Schedule 1 line 5 Yes, that's correct.