New Jersey: Revised Guidance Issued on Entities Included in the Combined Group

On May 15, 2019, the New Jersey Division of Taxation published revised Technical Bulletin-86(R) addressing which entities are included and excluded from the New Jersey combined group and which entities are subject to the $2,000 minimum tax.

In the revised Bulletin, the Division clarifies that, for 2019, REITs, RICs, and Investment Companies must report on a separate entity basis because the Corporation Business Tax statute does not specifically include or exclude such entities from the combined group. The bulletin further notes that, if these entities have nexus with New Jersey, they will be subject to the statutory minimum tax and income tax. Please contact Jim Venere at 973-912-6349 with questions.