On December 22, 2022,\u00a0New Jersey Governor Murphy signed into law a new rule that eliminates the need to make separate New Jersey S elections. The law primarily conforms New Jersey\u2019s laws regarding the making of S elections to federal law.<\/p>\n\n\n\n
For many years, a corporation could elect to be treated as an S\ncorporation for New Jersey tax purposes only if it affirmatively made a\nseparate New Jersey election, in addition to the federal S election under IRC\nSec. 1362. Under new laws effective for taxable years beginning after December\n22, 2022, by default, New Jersey finally treats any corporation that has made a\nvalid S corporation election for federal tax purposes as an S corporation for\nNew Jersey tax purposes. This structure is in line with the vast majority of\nstates that automatically afford S corporation status to a business entity that\nis a valid S corporation for federal income tax purposes.<\/p>\n\n\n\n
Under the new act, a corporation may separately elect not to be\ntreated as an S corporation under New Jersey law. This can be helpful if a\ncorporation has a number of New Jersey nonresident shareholders who do not wish\nto file individual New Jersey Gross Income Tax returns in New Jersey and would\nhave no other tax nexus with New Jersey. To make such an opt-out election, 100\npercent of the shareholders must consent. The election can be made for any\ntaxable year at any time during the preceding taxable year or at any time on or\nbefore the due date or extended due date of the corporation\u2019s tax return.<\/p>\n","protected":false},"excerpt":{"rendered":"
On December 22, 2022,\u00a0New Jersey Governor Murphy signed into law a new rule that eliminates the need to make separate New Jersey S elections. The law primarily conforms New Jersey\u2019s laws regarding the making of S elections to federal law. For many years, a corporation could elect to be treated as an S corporation for […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"1","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4460","post","type-post","status-publish","format-standard","hentry","category-planning-for-tax-minimization"],"_links":{"self":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/4460","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/comments?post=4460"}],"version-history":[{"count":1,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/4460\/revisions"}],"predecessor-version":[{"id":4464,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/4460\/revisions\/4464"}],"wp:attachment":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/media?parent=4460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/categories?post=4460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/tags?post=4460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}