Add or subtract income or losses derived in the conduct of a trade or business from rents, royalties, patents, or copyrights.Add interest and dividends derived in the conduct of a trade or business.Contributions that exceeded the federal limits are not deductible for New Jersey purposes Deduct qualified contributions to a self-employed 401(k) Plan.Deduct the remaining 50% of meal and entertainment expenses that were not allowed on the federal return.Add interest income not reported on federal Schedule C, C-EZ, or F from states or political subdivisions outside New Jersey that is exempt for federal purposes.Subtract interest income you reported on federal Schedule C, C-EZ, or F that is exempt for New Jersey purposes but taxable for federal purposes.Add any amount you deducted for taxes based on income.To determine your New Jersey profit or loss, first complete a federal Schedule C (or Schedule C-EZ or F) for each business. Individual business owners report the net income from the operation of their business in the 'Net Profits From Business' section of the NJ-BUS-1, Business Income Summary Schedule. It is the amount of business revenues remaining after deducting costs and operating expenses and is calculated using the same accounting method and period used for federal income tax purposes.

Net income is the profit realized from operating your business. If you are self-employed, the amount of net income from your business, trade, or profession must be reported on your New Jersey Income Tax return. In addition, you can carry forward unused losses in those categories for 20 years to calculate future adjustments. If you have losses in certain business-related categories of income, you may be able to use those losses to calculate an adjustment to your taxable income ( Alternative Business Calculation Adjustment).

New jersey entertainment expenses