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NJ Partnership with 1 part-year and 1 nonresident partner - taxation and program question.

BrooklynAcct
Level 2

My client has a 2-member partnership (an LLC) headquartered in NJ. The actual business though is done out of the members' homes, wherever they reside. One member lives in FL full-year 2018 and the other 1/2 year in NJ, 1/2 year in GA. The members send me the income and expenses allocated to each member. So assuming it was 50-50, only 25% of the income was earned in NJ and the rest out of state. The program takes that 25% and allocates it to both members, and the full-year nonresident is taxed more than the part-year one (on the NJ-GBT-1065), even though the income allocated to her is ALL earned in FL. Is there a way to fix this? There should be NO non-resident tax as the part-year resident will be filing a part-year NJ return.

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Accepted Solutions
PhoebeRoberts
Level 11
Level 11

That's not how state taxation works. Each partner will have some NJ-source and some FL-source income.

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1 Comment 1
PhoebeRoberts
Level 11
Level 11

That's not how state taxation works. Each partner will have some NJ-source and some FL-source income.

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