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New Jersey Claim for Exceptions to Disallowed Interest and Intangible Expenses and Cost for Taxable Years Ending on or After July 31, 2007
Extracted from PDF file 2023-new-jersey-schedule-g-2.pdf, last modified November 2022Claim for Exceptions to Disallowed Interest and Intangible Expenses and Cost for Taxable Years Ending on or After July 31, 2007
Claim for Exceptions to Disallowed Interest and Intangible Expenses and Costs Schedule G-2 (11-22) For Tax Years Beginning on or After January 1, 2018 Name as Shown on Return Federal ID Number Unitary ID number, if applicable NU Part I Exceptions to the Addback of Interest Note: A copy of the return from the state, possession, or foreign nation on which the related member reported interest income must be submitted with the taxpayer’s return. If more space is needed, enclose a schedule listing the information. Exception 1 Amounts Paid, Accrued, or Incurred to a Related Member(s) in a Foreign Nation that has a Comprehensive Treaty with the United States 1. Was any interest included on Schedule G, Part I of the CBT-100, CBT-100U, CBT-100S, or BFC-1 directly or indirectly paid, accrued, or incurred to a related member in a foreign nation that has a comprehensive income tax treaty with the United States? Yes. Go to question 2. No. You do not qualify for this exception. 2. Was the related member subject to tax in the foreign nation on a tax base that included the amount paid, accrued, or incurred, and the related member’s income received from the transaction was taxed at an effective tax rate equal to or greater than a rate of three percentage points less than the rate of tax applied to taxable interest by the State of New Jersey pursuant to section 5 of P.L. 1945, c. 162 (N.J.S.A.. 54:10A-5)? Yes. Complete the following schedule. Name of Related Member Name of Nation No. You do not qualify for this exception. Description of Treaty Allocation Factor Nation’s Rate of Tax Tax Paid Amount Allowed to Deduct (a) Total – Enter here and on line 1 of the Total Exceptions Chart for Part I........................................................................................... Exception 2 Interest paid to a related member that was subject to a tax on its net income or receipts in this State or another state or possession of the United States or in a foreign nation and which jurisdiction includes as a measure of the tax the interest received from the related member and applies a rate of tax to the interest received by the related member equal to or greater than a rate three percentage points less than the rate of tax applied to taxable interest by this State. If claiming this exception for more than one related member, complete Exception 2 for each related member and enter the total for all related members in the Total Exceptions Chart. Name of Related Member FID # of Related Member Fiscal Period of Related Member Name of the state, possession, or foreign nation in which the related member is subject to a tax on net income or receipts Amount of interest income included in the measure of net income or gross receipts subject to tax by the state, possession, or foreign nation Column A 1. Enter the amount of interest claimed by the taxpayer as deductible and reported as income or receipts subject to tax by the related member......... 2. Enter the taxpayer’s allocation factor from Schedule J, line 1h of the CBT-100, CBT-100S, or BFC-1 or Schedule J, line 9 of the CBT-100U. If non-allocating, enter 1.00............................................................................. 3. Enter the tax rate used to compute line 2 of the CBT-100, CBT-100S, or BFC-1 or Schedule A, Part III, line 5 of CBT-100U...................................... 4. Multiply column A, line 2 by column A, line 3 and enter the result here...... 5. Enter the tax rate applied to the net income or receipts from the return of the related member filed in the state, possession, or foreign nation of the related member on which the interest income is being reported................. 6. Enter the related member’s allocation factor from the return filed in the state, possession, or foreign nation on which the interest income is being reported. If non-allocating, enter 1.00........................................................ . 7. Multiply column A, line 5 by column A, line 6 and enter the result............... 8. Subtract column B, line 7 from column B, line 4 and enter result................ 9. Exception Amount. If the amount on column B, line 8 is greater than .03, enter zero in column C, line 9. If the amount on column B, line 8 is equal to or less than .03, enter amount from column C, line 1 in column C, line 9 and on line 2 of the Total Exceptions Chart for Part I.................................. Column B Column C Exception 3 Interest Paid, Accrued, or Incurred to Related Corporations Filing in New Jersey If claiming this exception for more than one related member, complete Exception 3 for each related member and enter the total for all related members in the Total Exceptions Chart. Name of Related Member FID # of Related Member Fiscal Period of Related Member 1. Was any interest expense included in Schedule G, Part I of this return directly or indirectly paid, accrued, or incurred to the above related member and included in a New Jersey CBT-100, CBT-100U, CBT-100S, or BFC-1 filed by the related member? Yes. Answer question 2. No. You do not qualify for this exception. 2. Was the tax liability reported on the related member’s New Jersey CBT-100, CBT-100U, CBT-100S, or BFC-1 greater than the statutory minimum tax? Yes. Complete the following schedule. No. You do not qualify for this exception. Column A Taxpayer 1. Enter in column A and column B the amount of interest claimed by the taxpayer as being deductible..... 2. Enter entire net income of related member from Schedule A, Part II, line 20 of the CBT-100, CBT-100U (member’s column), or BFC-1 or Schedule A, Part I, line 38 of CBT-100S. If the amount on line 2 is zero or less, stop here. The exception amount to be entered on line 8 is zero. Otherwise, go to line 3....................................................................................................................................................... 3. Enter the lesser of line 1, column B or line 2, column B............................................................................ 4. Enter the respective allocation factors from Schedule J, line 1h of the CBT-100, CBT-100S, or BFC-1 or Schedule J, line 9 of CBT-100U. If non-allocating, enter 1.00.............................................................. 5. Multiply line 1 by line 4 for column A and line 3 by line 4 for column B. Enter the result here................... 6. Enter the respective tax rates used to compute line 2 of the CBT-100, CBT-100S, or BFC-1 or Schedule A, Part III, line 5 of CBT-100U................................................................................................... 7. Multiply line 5 by line 6 and enter the result.............................................................................................. 8. Exception Amount. If line 7, column B is greater than line 7, column A, enter the amount from line 1, column A. Otherwise, divide the amount on line 7, column B by line 6, column A, and divide the result by line 4, column A. Enter here and on line 3 of the Total Exceptions Chart for Part I.............................. Exception 4 Column B Related Member Interest Paid, Accrued, or Incurred to an Independent Lender 1. Was any interest listed on Schedule G, Part I of the New Jersey CBT-100, CBT-100U, CBT-100S, or BFC-1 directly or indirectly paid, accrued, or incurred to an independent lender? Yes. Answer question 2. No. You do not qualify for this exception. 2. Is the debt upon which the interest is required guaranteed by the taxpayer filing this return? Yes. Complete the following schedule. No. You do not qualify for this exception. Name of Independent Lender Amount of Indebtedness Amount Deducted (a) Total – Enter here and on line 4 of the Total Exceptions Chart for Part I................................................. A copy of the loan agreement evidencing the guarantee of the debt by the taxpayer must also be submitted with this return. Total Exceptions Chart for Part I 1. Exception 1 – Enter amount from line (a) of Schedule G-2, Part I, Exception 1....................................... 2. Exception 2 – Enter amount from line 9 of Schedule G-2, Part I, Exception 2.......................................... 3. Exception 3 – Enter amount from line 8 of Schedule G-2, Part I, Exception 3.......................................... 4. Exception 4 – Enter amount from line (a) of Schedule G-2, Part I, Exception 4....................................... 5. Total Part I Exceptions – Add lines 1, 2, 3, and 4. Enter total here and on line (b) of Schedule G, Part I.... Part II Exceptions to the Addback of Intangible Expenses and Costs Note: Claim for an exception to the requirement to add back to entire net income intangible expenses and costs including intangible interest expenses and costs, paid, accrued, or incurred to a related member(s). If more space is needed, enclose a schedule listing the information. Exception 1 Amounts Paid, Accrued, or Incurred to a Related Member(s) in a Foreign Nation that has a Comprehensive Treaty with the United States 1. Were any of the intangible expenses and costs, including intangible interest expenses and costs reported on Schedule G, Part II of the CBT-100, CBT-100U, CBT-100S, or BFC-1 directly or indirectly paid, accrued, or incurred to a related member in a foreign nation that has a comprehensive income tax treaty with the United States? Yes. Go to question 2. No. You do not qualify for this exception. 2. Was the related member subject to tax in the foreign nation on a tax base that included the amount paid, accrued, or incurred, and the related member’s income received from the transaction was taxed at an effective tax rate equal to or greater than a rate of three percentage points less than the rate of tax applied to taxable interest by the State of New Jersey pursuant to section 5 of P.L. 1945, c. 162 (N.J.S.A.. 54:10A-5)? Yes. Complete the following schedule. Name of Related Member Name of Nation No. You do not qualify for this exception. Description of Treaty Allocation Factor Nation’s Rate of Tax Tax Paid Amount Allowed to Deduct (a) Total – Enter here and on line 1 of the Total Exceptions Chart for Part II.......................................................................................... Exception 2 Intangible Expenses and Costs Paid, Accrued, or Incurred to Related Corporations Filing in New Jersey If claiming this exception for more than one related member, complete Exception 2 for each related member and enter the total for all related members in the Total Exceptions Chart. Name of Related Member: FID # of Related Member: Fiscal Period of Related Member: 1. Were any of the intangible expenses and costs including intangible interest expenses and costs reported on Schedule G, Part II of the CBT-100, CBT-100U, CBT-100S, or BFC-1 directly or indirectly paid, accrued, or incurred to the above related member and included in a New Jersey CBT-100, CBT-100U, CBT-100S, or BFC-1 filed by the related member? Yes. Answer question 2. No. You do not qualify for this exception. 2. Was the tax liability of the related member greater than the statutory minimum tax? Yes. Complete the following schedule. No. You do not qualify for this exception. Column A Taxpayer 1. Enter in column A and column B the amount of intangible expenses and costs claimed by the taxpayer as being deductible..................................................................................................................... 2. Enter entire net income of related member from Schedule A, Part II, line 20 of the CBT-100, CBT-100U (member’s column), or BFC-1 or Schedule A, Part I, line 38 of CBT-100S. If the amount on line 2 is zero or less, stop here. The exception amount to be entered on line 8 is zero. Otherwise, go to line 3....................................................................................................................................................... 3. Enter the lesser of line 1, column B or line 2, column B............................................................................ 4. Enter the respective allocation factors from Schedule J, line 1h of the CBT-100, CBT-100S, or BFC-1 or Schedule J, line 9 of the CBT-100U. If non-allocating, enter 1.00........................................................ 5. Multiply line 1 by line 4 for column A and line 3 by line 4 for column B. Enter the result........................... 6. Enter the respective tax rates used to compute line 2 of the New Jersey CBT-100, CBT-100S, or BFC-1 or Schedule A, Part III, line 5 of CBT-100U ................................................................................... 7. Multiply line 5 by line 6 and enter the result.............................................................................................. 8. Exception Amount. If line 7, column B is greater than line 7, column A, enter the amount from line 1, column A. Otherwise, divide the amount on line 7, column B by line 6, column A, and divide the result by line 4, column A. Enter result here and on line 2 of the Total Exceptions Chart for Part II................... Total Exceptions Chart for Part II 1. Exception 1 – Enter amount from line (a) of Schedule G-2, Part II, Exception 1...................................... 2. Exception 2 – Enter amount from line 8 of Schedule G-2, Part II, Exception 2......................................... 3. Total Part II Exceptions – Add lines 1 and 2. Enter total here and on line (b) of Schedule G, Part II......... Column B Related Member Instructions for Schedule G-2 For definitions of a related member, intangible expenses and costs, intangible interest expenses and costs, and intangible property, see the instructions for Schedule G of Form CBT-100, CBT-100U, CBT-100S, or BFC-1. For tax years beginning on or after January 1, 2018, the treaty exceptions are limited pursuant to P.L. 2018, c. 48. Note: If there are transactions between members of a combined group that are included on the same New Jersey combined return, and those amounts are reported on Schedule A, they are also eliminated on Schedule A. No exception is required. Part I Exception 1 Complete the schedule if the taxpayer included any interest expense on Schedule G, Part I of the CBT-100, CBT-100U or CBT-100S (or the BFC-1, if applicable) that was directly or indirectly paid, accrued, or incurred to a related member in a foreign nation that has in force a comprehensive income tax treaty with the United States pursuant to P.L. 2018, c. 48 and: (1) The related member was subject to tax in the foreign nation on a tax base that included the payment paid, accrued, or incurred; and (2) The related member’s income received from the transaction was taxed at an effective tax rate equal to or greater than a rate of three percentage points less than the rate of tax applied to taxable interest by the State of New Jersey. Exception 2 Complete the schedule if the taxpayer included any interest expense on Schedule G, Part I of the CBT-100, CBT-100U, or CBT100S (or the BFC-1, if applicable) that was directly or indirectly paid, accrued, or incurred to a related member and for which the payment of such interest: (1) Was not to avoid taxes otherwise due under Title 54 of the Revised Statutes of Title 54A of the New Jersey Statutes; (2) Was paid pursuant to arm’s length contracts at an arm’s length rate of interest; and (3) (a) The related member was subject to a tax on its net income or receipts in this State or another state or possession of the United States or in a foreign nation; (b) A measure of the tax includes the interest received from the related member; (c) The rate of tax applied to the interest received by the related member is equal to or greater than a rate three percentage points less than the rate of tax applied to taxable interest by this State. A copy of the return from the state, possession, or foreign nation on which the related member reported interest income must be submitted with the taxpayer’s return. Exception 3 Complete the schedule if the taxpayer included any interest expense on Schedule G, Part I of the CBT-100, CBT-100U, or CBT-100S (or the BFC-1, if applicable) that was directly or indirectly paid, accrued, or incurred to a related member that is a corporation that files a Corporation Business Tax return in New Jersey, and such member included those amounts in its entire net income. If claiming this exception for more than one related member, complete Exception 3 for each related member, and enter the total for all related members in the Total Exceptions Chart for Part I. If an exception to the disallowance of the interest expense was determined under Exception 1 and/or 2, an exception under this provision for that related member is not available. Exception 4 Complete the schedule if the taxpayer included any interest expense on Schedule G, Part I of the CBT-100, CBT-100U, or CBT100S (or the BFC-1, if applicable) that was directly or indirectly paid, accrued, or incurred to an independent lender, and the taxpayer filing this return guarantees the debt on which the interest is required. Part II Exception 1 Complete the schedule if the taxpayer included any intangible expenses and costs including intangible interest expenses and costs on Schedule G, Part II of the CBT-100, CBT-100U, or CBT-100S (or the BFC-1, if applicable) that were directly or indirectly paid, accrued, or incurred to a related member in a foreign nation that has in force a comprehensive income tax treaty with the United States and: (1) The related member was subject to tax in the foreign nation on a tax base that included the payment paid, accrued, or incurred; and (2) The related member’s income received from the transaction was taxed at an effective tax rate equal to or greater than a rate of three percentage points less than the rate of tax applied to taxable interest by the State of New Jersey. Exception 2 Complete the schedule if the taxpayer included any intangible expenses and costs including intangible interest expenses and costs on Schedule G, Part II of the CBT-100, CBT-100U, or CBT-100S (or the BFC-1, if applicable) that were directly or indirectly paid, accrued, or incurred to a related member that is a corporation that files a Corporation Business Tax return in New Jersey, and such member has included those amounts in its entire net income. If claiming this exception for more than one related member, complete Exception 2 for each related member, and enter the total for all related members in the Total Exceptions Chart for Part II. Notes: Any other exceptions cannot be made on the return. The amounts paid to related members as reported on line (a) of Schedule G, Part I and/or Part II, must be included in the amount reported on line (c) of Schedule G, Part I and/or Part II. A separate Claim for Refund (Form A-3730) stipulating all the facts and providing all applicable evidence to support the taxpayer’s claim, must be submitted in order to request any other exception.
Schedule G-2 Claim for Exceptions to Disallowed Interest
More about the New Jersey Schedule G-2 Corporate Income Tax TY 2023
We last updated the Claim for Exceptions to Disallowed Interest and Intangible Expenses and Cost for Taxable Years Ending on or After July 31, 2007 in February 2024, so this is the latest version of Schedule G-2, fully updated for tax year 2023. You can download or print current or past-year PDFs of Schedule G-2 directly from TaxFormFinder. You can print other New Jersey tax forms here.
Other New Jersey Corporate Income Tax Forms:
TaxFormFinder has an additional 95 New Jersey income tax forms that you may need, plus all federal income tax forms.
| Form Code | Form Name |
|---|---|
| Form CBT-200-T | Corporation Business Tax Tentative Return and Application |
| Form NJ-1041 | Fiduciary Return Form |
| Form CBT-160-A | Underpayment of Estimated NJ Corporation Business Tax For Taxpayers with Gross Receipts less than $50,000,000 |
| Form DCC-1 | Document Control Center Request Form |
| Form CBT-150 | Estimated Tax Vouchers for Corporations |
View all 96 New Jersey Income Tax Forms
Form Sources:
New Jersey usually releases forms for the current tax year between January and April. We last updated New Jersey Schedule G-2 from the Division of Revenue in February 2024.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of New Jersey Schedule G-2
We have a total of thirteen past-year versions of Schedule G-2 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2023 Schedule G-2
Schedule G-2 Claim for Exceptions to Disallowed Interest
2022 Schedule G-2
Schedule G-2 Claim for Exceptions to Disallowed Interest
2021 Schedule G-2
Claim for Exceptions to Disallowed Interest and Intangible Expenses and Costs, Schedule G
2020 Schedule G-2
Claim for Exceptions to Disallowed Interest and Intangible Expenses and Costs, Schedule G
2018 Schedule G-2
CBT-100-G2
2017 Schedule G-2
2007 CBT-100-G2
2016 Schedule G-2
2007 CBT-100-G2
2015 Schedule G-2
2007 CBT-100-G2
2014 Schedule G-2
2007 CBT-100-G2
2013 Schedule G-2
2007 CBT-100-G2
2012 Schedule G-2
2007 CBT-100-G2
2011 Schedule G-2
2007 CBT-100-G2
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