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Schedule G, Part I. Enter the total of such interest expense on line Intangible Interest Expenses and Costs means amounts
37(c) of Schedule A. Do not include interest expenses and costsdirectly or indirectly allowed as deductions under section 163 of
that were deducted directly or indirectly for, related to, or inthe federal Internal Revenue Code of 1986 26 U.S.C. s.163, for
connection with the direct or indirect acquisition, maintenance,purposes of determining taxable income under the code to the
management, ownership, sale, exchange, or disposition ofextent such expenses and costs are directly or indirectly for,
intangible property in Part I. These expenses and costs are,related to, or in connection with the direct or indirect acquisition,
however, required to be included in Part II.maintenance, management, ownership, sale, exchange or
SCHEDULE G - PART II - INTEREST EXPENSES AND COSTSdisposition of intangible property.
AND INTANGIBLE EXPENSES AND COSTS: Interest expenses 25. SCHEDULE H - TAXES: Itemize all taxes which were in any way
and costs and intangible expenses and costs directly or indirectlydeducted in arriving at taxable net income, whether reflected at
paid, accrued, or incurred to, or in connection directly or indirectlyline 2 (Cost of goods sold and/or operations), line 12 (Taxes), line
with one or more direct or indirect transactions with one or more19 and/or 28 (Other deductions) or anywhere on Schedule A. Also
related members which were deducted in computing taxable net refer to instruction 14(e).
income on line 31 of Schedule A must be reported on Schedule G, 26. SCHEDULE I - CERTIFICATION OF INACTIVITY: In lieu of
Part II. Enter the total of such intangible expenses and costs oncompleting the entire tax return, an inactive corporation may
line 37(d) of Schedule A. complete this schedule along with pages 1 through 5 of the tax
Exceptions:If the taxpayer is claiming an exception to thereturn. Payment for the related minimum tax, the surtax, and the
disallowance of the expense reported in Part I or Part II, then theinstallment payment (if applicable), must be submitted with Form
taxpayer must complete and attach Schedule G-2. This scheduleCBT-100S-V. An inactive corporation is a corporation that, during
may be obtained from the Division of Taxation’s website. Seethe entire period covered by the tax return, did not conduct any
index on page 16. business, did not have any income, receipts or expenses, did not
Definitions: own any assets, did not make any distributions, and did not have
any change in ownership.
Related member means a person that, with respect to the
taxpayer during all or any portion of the privilege period is (1) a27. SCHEDULE J PART I - GENERAL INSTRUCTIONS
related entity, (2) a component member as defined in subsectionREGARDING ALLOCATION OF ADJUSTED ENTIRE NET
(b) of section 1563, of the federal Internal Revenue Code of 1986, INCOME:
26 U.S.C. s.1563, (3) a person to or from whom there is attribution (a)WHO IS PERMITTED TO ALLOCATE: No domestic or
of stock ownership in accordance with subsection (e) of sectionforeign corporation is permitted to allocate less than 100% of
1563 of the federal Internal Revenue Code of 1986, 26 U.S.C.its adjusted entire net income to New Jersey, unless, during
s.1563 or (4) a person that, notwithstanding its form ofthe period covered by the return, itactually maintained a
organization, bears the same relationship to the taxpayer as a other thanregular place of business outside of New Jersey
person described in (1) through (3) of this definition.a statutory office.
Related entity means (1) a stockholder who is an individual or a (b)DEFINITION OF REGULAR PLACE OF BUSINESS: A
member of the stockholder’s family enumerated in section 318 of“regular place of business” is any bona fide office (other than
the federal Internal Revenue Code of 1986 26 U.S.C. s.318, if thea statutory office), factory, warehouse, or other space of the
stockholder and the member’s of the stockholder’s family own,taxpayer which is regularly andMAINTAINED, OCCUPIED
directly, indirectly, beneficially or constructively, in the aggregate, USEDby the taxpayer in carrying on its business and in which
at least 50% of the value of the taxpayer’s outstanding stock; (2)one or more regular employees are in attendance. To maintain
a stockholder, or a stockholder’s partnership, limited liabilitya place of business, the taxpayer must either own or rent the
company, estate, trust or corporation, if the stockholder and thepremises. That cost must be borne directly by the the taxpayer
stockholder’s partnerships, limited liability companies, estates,and not by some related entity or person.
trusts and corporations own directly, indirectly, beneficially or (c)ALLOCATION PERCENTAGES: In computing the allocation
constructively, in the aggregate, at least 50% of the value of thefactor in Schedule J, division must be carried to six decimal
taxpayer’s outstanding stock; or (3) a corporation, or a party places, e.g., .123456.
related to the corporation in a manner that would require an
attribution of stock from the corporation to the party or from the (d)ELECTION TO ALLOCATE: If the taxpayer is entitled to
party to the corporation under the attribution rules of the federalallocate, the election should be made with the filing of the
Internal Revenue Code of 1986, 26 U.S.C. s.318, if the taxpayerCorporation Business Tax return regardless of the amount of
owns, directly, indirectly, beneficially or constructively, at leastincome reported on line 42 of Schedule A. Schedule J must
50% of the value of the corporation’s outstanding stock. Thebe completed to validate the election.
attribution rules of the federal Internal Revenue Code of 1986, 26(e) Only the receipts, property and payroll expenses attributable
U.S.C. s.318, shall apply for purposes of determining whether theto operational activity are to be used in computing the
ownership requirements of this definition have been met.allocation factor denominators.
Intangible expenses and costs includes (1) expenses, losses, 28. SCHEDULE J PART II - AVERAGE VALUES: Average value is
and costs, for, related to, or in connection directly or indirectly withgenerally computed on a quarterly basis where the taxpayer’s
the direct or indirect acquisition, use, maintenance oraccounting practice permits such computation. At the option of
management, ownership, sale, exchange, or any other dispositionthe taxpayer or the State, a more frequent basis (monthly, weekly
of intangible property to the extent such amounts are allowed asor daily) may be used. Where the taxpayer’s accounting practice
deductions or costs in determining taxable income beforedoes not permit computation of average value on a quarterly or
operating loss deduction and special deductions for the taxablemore frequent basis, semi-annual or annual frequency may be
year under the federal Internal Revenue Code of 1986, 26 U.S.C.used only where no distortion of average value results. If any
s.1 et seq., (2) losses related to, or incurred in connection directlybasis other than quarterly is used, state the basis and reasons for
or indirectly with factoring transactions or discounting use on attached rider.
transactions, (3) royalty, patent, technical and copyright fees, (4)The average values of real and tangible personal property owned
licensing fees, and (5) other similar expenses and costs.which are used in determining the property fraction of the
Intangible Propertymeans patents, patent applications, tradeallocation factor are based on book value. The numerator and
names, trademarks, service marks, copyrights, mask works, tradedenominator must take into account accumulated depreciation
secrets and similar types of intangible assets.deferred for net income purposes where the taxpayer accounts for
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