New Jersey Partnership Return –
Deduction of IRC Section 179 Expense
In preparing a New Jersey Partnership Return, NJ-1065, for tax years beginning on or after January 1, 2004 the IRC Section 179 expense reported on Schedule K, Federal Form 1065 should be included on Line 15g – Other Subtractions.
The Gross Income Tax Depreciation Adjustment Worksheet, GIT-DEP, is used to calculate the New Jersey depreciation adjustment. If the result is a net addition, it is included on Line 13b, Other Additions. If the result is a net subtraction, it is included on Line 15g, Other Subtractions.