Schedule A-7: Gross Income Test for Financial Businesses That are Members of a Combined Group (Revision)
New Jersey · NJ Division of Taxation · Used for tax years 2025
New Jersey Schedule A-7 is a worksheet used to determine whether a combined group member qualifies as a Financial Business Corporation. It compares gross income from specified financial activities with overall gross income. Qualifying financial businesses should keep the workshee
Who files this form
Schedule A-7 is for financial businesses that are members of a combined group. It determines whether a member qualifies as a Financial Business Corporation.
The form says qualifying financial businesses should use it as a worksheet and keep it for their records.
What you'll need
Have these forms and details available to complete the worksheet:
- The member’s Unitary ID Number, FEIN, and name.
- The member’s column of Schedule A, Part I, Form CBT-100U, including line 1a and lines 4 through 10.
- Income details showing which amounts came from the financial activities listed on Schedule A-7.
- Information about interest on federal, State, municipal, and other obligations needed for the worksheet’s interest adjustment.
- Schedule J, line 9, with both the member’s allocation factor and the combined group’s allocation factor.
- Schedule R, line 12, for the allocated dividend exclusion.
Common mistakes
- Do not check the Financial Business box at line 4 of the Members and Affiliates Schedule if the resulting percentage is less than 75%.
- If the percentage is 75% or more, check that box and complete the member’s section of Schedule L, apportioning the financial business in New Jersey consistent with N.J.S.A. 54:10A-38.
- Keep the worksheet for your records, as the form directs.
Questions people ask
How is the financial business percentage calculated?
Divide gross income in column 2 by gross income in column 1 and enter the result as a percentage. Line 19 contains the gross income amounts used for this calculation.
What percentage qualifies a corporation as a Financial Business?
A result of 75% or more qualifies. A result below 75% does not qualify.
What income belongs in column 2?
Column 2 includes the gross income already included in column 1 that came from the financial activities listed on the form. These include specified debt, exchange, loan, securities, investment, underwriting, and leasing activities.
Do all leasing transactions count as financial activities?
No. The form lists certain leases that approximate secured loans and meet all four requirements: the lessor primarily relies on the lessee’s creditworthiness to recover its investment; does not rely on repeatedly leasing the same property; uses a net lease; and recovers its full investment plus financing costs through rental payments, tax benefits, and the property’s residual value. The form refers to N.J.A.C. 18:7-1.16(b) for additional information.