NJ 1065 for LLC in Colorado partners are NJ residents

Forum|Forum|2 years ago
October 16, 2023
2 replies
30 views

We formed an LLC in Colorado for a rental property in that state. The LLC has 2 members so it is considered a partnership for federal filing. We filed the equivalent of the 1065 in Colorado and the federal 1065. The expenses and depreciation exceeded the rental income in the first year, so the business shows a loss. Both partners are residents of NJ, but no business operations or income from NJ. Should we also file NJ 1065? Thank you.

Not A Product Question

Anonymous_

Level 15

Any information on the K-1s you each receive should port to your NJ returns when you enter that information on the federal side.

Sabrina29Author

Level 2

Looking at the NJ state website under partnerships there is the following statement under Who Must File "Every partnership that has income or loss derived from sources in the State of New Jersey, or has any type of New Jersey resident partner, must file Form NJ-1065. A partnership must file even if its principal place of business is outside the State of New Jersey." This statement prompted my original question.

The software asks about partnership income based on the federal return and also asks if we received a NJ K-1. If I answer "no" to the interview question about NJ K-1, then Worksheet B is completed "Reconciliation of Federal K-1" and the loss is carried forward to NJ-BUS-2 "Alternative Business Calculation Adjustment" - also have 1099-NEC income from a consulting business. Just wanted to make sure that all of these different types of forms and income are handled correctly.