Schedule NJ-BUS-2 (Nonresident): Alternative Business Calculation Adjustment—Nonresident (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
Schedule NJ-BUS-2 calculates the 2024 Alternative Business Calculation Adjustment for New Jersey Form NJ-1040NR. It compares regular business income with alternative business income or loss, applies a 50% adjustment percentage, and calculates any loss carryforward to tax year 202
What you'll need
The schedule uses information from:
- Your 2024 Form NJ-1040NR: your name, Social Security number, and the amounts in column A of lines 18, 20, 23, and 24.
- Your Schedule NJ-BUS-1 (Form NJ-1040NR): line 4 of Parts I, II, III, and IV.
- Your 2023 Schedule NJ-BUS-2 (Form NJ-1040NR): line 12, for the loss carryforward entered on line 5b.
Common mistakes
- Do not enter a loss on line 8. If line 6b is a loss, enter zero on line 8.
- Do not skip the zero-result instruction for line 9. If the result is zero, enter zero on line 11 and on line 35 of Form NJ-1040NR, then continue with line 12.
- Keep a copy of the schedule for your records.
Questions people ask
What types of income does this schedule cover?
It covers net profits from business; net gain or income from rents, royalties, patents, and copyrights; distributive share of partnership income; and net pro rata share of S corporation income.
How do I total alternative business income or loss?
On line 6b, total lines 1b through 5b, netting gains with losses. Line 5b comes from line 12 of your 2023 Schedule NJ-BUS-2 (Form NJ-1040NR).
How is the 2024 adjustment calculated?
Subtract line 8 from line 7 to get the business increment on line 9. Multiply line 9 by 50% (0.50). Enter the adjustment on line 11 and on line 35 of Form NJ-1040NR.
What amount carries forward to tax year 2025?
If line 6b is a loss, enter the amount of that loss on line 12 as the loss carryforward to tax year 2025. Otherwise, enter zero.