Schedule NJ-BUS-2 (Resident): Alternative Business Calculation Adjustment—Resident (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Schedule NJ-BUS-2 calculates the 2025 New Jersey Alternative Business Calculation Adjustment for Form NJ-1040. It compares regular business income with alternative business income or loss, applies a 50% adjustment percentage, and calculates any loss carryforward to tax year 2026.
What you'll need
Have these forms available to complete the 2025 schedule:
- 2025 Form NJ-1040: Use the name(s) shown on the return and the amounts from lines 18, 21, 22, and 23.
- 2025 Schedule NJ-BUS-1 (Form NJ-1040): Use line 4 from each of Parts I, II, III, and IV.
- 2024 Schedule NJ-BUS-2 (Form NJ-1040): Use line 12 for the loss carryforward entered on line 5b.
The schedule also asks for your Social Security number.
Common mistakes
- Do not enter a loss on line 8. The form says to enter zero there if line 6b is a loss.
- Do not overlook the zero-result instruction. If line 9 is zero, enter zero on line 11 and continue with line 12.
- Keep a copy of the schedule for your records. This reminder is printed on the form.
Questions people ask
What types of income does this schedule cover?
Part I 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 alternative business calculation adjustment for 2025?
Enter the total from line 6a on line 7. Enter the total from line 6b on line 8, using zero if it is a loss. Subtract line 8 from line 7 to get line 9, then multiply line 9 by 50% (0.50) to calculate line 11. If line 9 is zero, enter zero on line 11 and continue with line 12.
Where does the adjustment go on my tax return?
Enter the amount from line 11 of this schedule on line 35 of Form NJ-1040.
How do I handle loss carryforwards?
For the loss carryforward from tax year 2024, enter line 12 of your 2024 Schedule NJ-BUS-2 on line 5b. To calculate the carryforward to tax year 2026, check line 6b of your 2025 schedule. If it is a loss, enter that loss on line 12. Otherwise, enter zero.