These answers are going to pertain directly to New Jersey activity of the partnership. If you have specific questions about a PTP, I would defer to the PTP for further guidance on how to report activity pertinent to New Jersey. It appears that it involves residency of partners as well as business activity in New Jersey.
Per the Instructions for NJ-1065 Partnership Return and New Jersey Partnership NJK-1 beginning on page 7:
Taxes based on income will be added back as the amount of taxes based on income which were deducted to determine ordinary income (loss) on Line 1, Ordinary Income (Loss) From Trade or Business Activities. This will be the amount reported on line 1, Schedule K, federal Form 1065.
Line 13b – Other Additions – Specify Enter on line 13b any other items deducted from or not included on lines 1 through 11 that are not excludable under the New Jersey Gross Income Tax Act. If an asset has been placed in service since January 1, 2004, refer to Worksheet GIT-DEP. This worksheet is available on the Division’s website. Include any net addition adjustment from Worksheet GIT-DEP, if applicable, if federal income included deduction of federal special depreciation allowance or IRC Section 179 expense; federal Section 179 recapture income; or a gain or loss on disposition of such asset. Specify each item reported. If the amount reported on line 12, NJ-1065, included any loss incurred in connection with the disposition of exempt New Jersey or federal obligations, you must add back the amount of such loss on this line.
Line 15g – Other Subtractions – Specify Enter on line 15g any other items that are excludable or deductible from the income included in the subtotal reported on line 12 for New Jersey Gross Income Tax purposes. Specify each item subtracted. Examples of some items that might be reported on this line are: • Dividends from exempt federal and New Jersey obligations described at N.J.S.A. 54A:6-14. • Gains from the sale of exempt federal and New Jersey obligations excludable pursuant to N.J.S.A. 54A:5-1c. • Meal and entertainment expenses that constitute ordinary business expenses incurred in the conduct of 2019 Form NJ-1065 8 a trade or business that are not deductible for federal purposes. • If an asset has been placed in service since January 1, 2004, refer to Worksheet GIT-DEP. This worksheet is available on the Division’s website. Include any net subtraction adjustment from Worksheet GIT-DEP, if applicable, if federal income included deduction of federal special depreciation allowance or IRC Section 179 expense; federal Section 179 recapture income; or a gain or loss on disposition of such asset.
Note: A partnership is not entitled to a basis adjustment in the calculating and reporting of partnership gain or loss from the sale or disposition of partnership assets as was extended to individuals, as in the Koch case, on the sale or disposition of a partnership interest. The partnership must always use federal adjusted basis when determining gain or loss. Only taxpayers as defined pursuant to N.J.S.A. 54A:1-2.l are entitled to a Koch-type adjustment.
Please see page 2 of the instructions for who must file. Since you are a resident partner and reside in New Jersey, then Form NJ-1065 must be filed.
