New Jersey Business Allocation Schedule

Business Allocation Schedule
2023 NJ-NR-A
New Jersey Gross Income Tax

NJ-NR-A
(10-23)

Business Allocation Schedule

For Tax Years Beginning On and After January 1, 2023

Use this schedule if business activities are carried on both inside and outside New Jersey or if business activities are carried on 100% outside New Jersey.
For tax years beginning on and after January 1, 2023, services are sourced based on market sourcing, not cost of performance.

This form must be enclosed and filed with your New Jersey Income Tax return.
Enter name, address, and Social Security/federal employer identification number as shown on Form NJ-1040NR, NJ-1041, or NJ-1065.
Legal name of taxpayer

Social Security Number/Federal EIN

Trade name of business if different from legal name above

For the Tax Year Ending
(Month, Day, Year)

Address (number and street or rural route)
City or Post Office	

State	

ZIP Code

Business Allocation Percentage
Receipts:

Amounts (omit cents)

1.	 From sales of tangible personal property shipped to points within New Jersey..................................................... .

1.

2.	 From services, if the benefit of the service is received in New Jersey.....................................................................

2.

3.	 From rentals of property situated in New Jersey......................................................................................................

3.

4.	 From royalties for the use in New Jersey of patents, copyrights, and trademarks....................................................

4.

5.	 All other business receipts earned in New Jersey...................................................................................................

5.

6.	 Total New Jersey receipts (Total of lines 1 through 5).............................................................................................

6.

7.	 Total receipts from all sales, services, rentals, royalties, and other business transactions everywhere..................

7.

8.	 Business Allocation Percentage (Allocation Factor)(Divide line 6 by line 7).
Carry the fraction to 6 decimal places and express as a percent. ..........................................................................

8.

If business activities are carried on both inside and outside New
Jersey, use this form to determine the business allocation percentage. This will be applied to the business income to determine
the amount from New Jersey sources. For purposes of this form,
business allocation percentage and allocation factor are used
interchangeably.
Beginning with Tax Year 2023, the business allocation percentage uses market-based sourcing, not cost of performance, to
determine the portion of the business income sourced to New
Jersey. The business allocation percentage is calculated using a
single sales factor formula rather than a three-factor formula. See
N.J.A.C. 18:7-7.1 through N.J.A.C. 18:7-10.1 for more information.
Only activities related to operational activity are to be used when
calculating the business allocation percentage. Do not include
nonoperational activity. Nonoperational income is income or loss
generated by activities outside the regular trade or operating activities of a business. See N.J.S.A. 54:10A-6.1 for more information.
Be sure that Form NJ‑NR‑A is enclosed with Form NJ‑1040NR,
NJ‑1041, or NJ-1065, and that the name and address on the
Business Allocation Schedule agree exactly with the name and
address on the return with which it is enclosed.

%

Lines 1–5 – Receipts
Receipts Allocated to New Jersey
•• Receipts from sales of tangible personal property if the goods
are shipped to points within New Jersey
•• Receipts from the sale of goods if shipped to a New Jersey or
a non-New Jersey customer where possession is transferred in
New Jersey
•• Receipts from the sale of goods shipped to a taxpayer from
outside New Jersey to a New Jersey customer by a common
carrier
•• Services performed if the benefit of the service is received in
New Jersey
•• Rentals from property situated in New Jersey
•• Royalties from the use in New Jersey of patents, copyrights,
and trademarks
•• All other business receipts earned in New Jersey
Receipts Not Allocated to New Jersey. Receipts from the sale
of goods shipped from outside New Jersey to a New Jersey location where the goods are picked up by a common carrier and
transported to a customer outside New Jersey are not allocated to
New Jersey.

Receipts From Sales of Capital Assets. Receipts from sales of
capital assets not held for sale to customers in the regular course
of business, either within or outside New Jersey, should be included in the numerator and the denominator based on the net
gain recognized and not on gross selling prices. If the taxpayer’s
business is the buying and selling of real estate or of securities
for trading purposes, gross receipts from the sales of such assets
should be included in the numerator and the denominator of the
receipts fraction.
Lines 6 – Total Receipts From All Sales, Services, and Other
Business Transactions In New Jersey
Add lines 1 through 5 and enter the total.
Line 7 – Total Receipts From All Sales, Services, and Other
Business Transactions Everywhere
Enter on line 7 the total receipts from all sales made, services
per­formed, and business transactions conducted both inside and
outside New Jersey during the period covered by the return.
Line 8 – Business Allocation Percentage
Divide line 6 by line 7 and enter the result. The result will be 100%
or less. Also enter this percentage on the appropriate line of the
following returns:
•• Part III, Form NJ‑1040NR;
•• Schedule D, Form NJ‑1041;
•• Line 19b, Form NJ‑1065;
•• Partnership Filing Fee, Form NJ-1065; and
•• Partners Directory, Form NJ-1065.
Note: If filing Form NJ-1065, enter the business allocation percentage as a decimal (e.g., enter 12.345% as .12345).