Schedule NJ-BUS-2 (Resident): Alternative Business Calculation Adjustment—Resident (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
Schedule NJ-BUS-2 calculates the Alternative Business Calculation Adjustment for the 2024 New Jersey Form NJ-1040. It compares regular business income with alternative business income or loss, applies a 50% adjustment percentage to the difference, and records any loss carryforwar
What you'll need
Have these forms available to complete the 2024 schedule:
- Form NJ-1040: Use the name(s) shown on the return and the amounts on lines 18, 21, 22, and 23.
- Schedule NJ-BUS-1 (Form NJ-1040): Use line 4 from each of Parts I through IV.
- Your 2023 Schedule NJ-BUS-2: Use line 12 for the loss carryforward entered on line 5b.
The schedule also asks for your Social Security number.
Common mistakes
- Not keeping a copy: The schedule reminds you to keep a copy for your records.
Questions people ask
What income categories does this schedule cover?
It lists net profits from business; distributive share of partnership income; net pro rata share of S corporation income; and net gain or income from rents, royalties, patents, and copyrights.
How do I calculate the 2024 adjustment?
Add lines 1a through 4a and enter the total on line 6a, then copy it to line 7. Total lines 1b through 5b, netting gains with losses, on line 6b. Copy that total to line 8, but enter zero on line 8 if it is a loss. Subtract line 8 from line 7 to get line 9. Multiply line 9 by 50% (0.50) and enter the adjustment on line 11 and on Form NJ-1040, line 35.
What if line 9 is zero?
Enter zero on line 11 and continue with line 12.
How do I determine the loss carryforward to tax year 2025?
If line 6b is a loss, enter the amount of that loss on line 12. Otherwise, enter zero.