A pass-through entity can electronically revoke its BAIT Election on or before the original due date of the entity’s PTE-100 form (e.g., March 15 for calendar year filers). Yes, if a pass-through entity requests to credit all or part of its 2021 PTE-100 overpayment to its 2022 tax year, it should file its 2022 BAIT Election prior to filing its 2021 PTE-100. Is a pass-through entity that requests a full or partial credit forward of its 2021 overpayment to its 2022 tax year required to make a 2022 BAIT Election prior to filing its 2021 PTE-100?
The 2022 BAIT Election does not have to be made at the time of filing its 2021 PTE-200-T, but must be made prior to filing its 2021 PTE-100 and/or prior to making any payments. Is a pass-through entity required to make a 2022 BAIT Election at the same time it files a 2021 extension if it believes it will have a 2021 overpayment that it wants credited forward to its 2022 tax year? If an election is fully submitted, the last page indicates Your Election Form Has Been Successfully Submitted with a confirmation number listed at the top of the page. Will a pass-through entity receive a confirmation number? June 15 for fiscal year filers with a March 31 year-end). When is a fiscal year partnership eligible to make the Pass-Through Business Alternative Income Tax election?Ī fiscal year pass-through entity may make the election for taxable years beginning on or after January 1, 2020, and on or before the original due date of the entity's PTE-100 form (e.g. What is the last date a pass-through entity can revoke its election?Ī pass-through entity can electronically revoke its election on or before the original due date of the entity's PTE-100 form (e.g., March 15 for calendar year filers). The election cannot be made retroactively. The annual election is due on or before the original due date of the entity's PTE-100 form (e.g., March 15 for calendar year filers) and must be electronically filed. When is a pass-through entity required to make an election?Īnnually. Single member LLCs and sole proprietorships may not elect to pay the Pass-Through Business Alternative Income Tax. The entity must have at least one member who is liable for tax on their share of distributive proceeds pursuant to the New Jersey Gross Income Tax Act, N.J.S.A. Which entities may elect to pay the Pass-Through Business Alternative Income Tax? The entity must make an election to pay the Pass-Through Business Alternative Income Tax each year. Must the entity make an election to pay the Pass-Through Business Alternative Income Tax each year? Partners with a calendar year end of 12/31/22 will claim credit for their share of the 2021 BAIT on their 2022 New Jersey tax returns. A partnership with a fiscal year of 10/1/21–9/30/22 will file a 2021 PTE-100. The revisions to the BAIT law are effective as of January 1, 2022, and therefore do not apply to a partnership with a fiscal year of 10/1/21–9/30/22. A member's share of distributive proceeds is based on the information reported on the entity's Form NJ-1065 or CBT-100S which includes an add back for taxes based on income.įor a partnership having a fiscal year of 10/1/21-9/30/22 and partners with a calendar year end of 12/31/22, will the recent revisions to the original BAIT law apply? Should the Pass-Through Business Alternative Income Tax be added back and included in Distributive Proceeds on Form PTE-100? The Pass-Through Business Alternative Income Tax is a tax based on income and should be added back to partnership and S corporation income on Line 13a of Form NJ-1065 or on Line 4b, Schedule K of Form CBT-100S. Should the Pass-Through Business Alternative Income Tax that was deducted for federal tax purposes be added back to partnership and S corporation income on the NJ-1065 and CBT-100S returns? The Pass-Through Business Alternative Income Tax is elective.
Is the Pass-Through Business Alternative Income Tax mandatory? The member(s) may then claim a tax credit for the amount of tax paid by the pass-through entity on their share of distributive proceeds. However, for taxable years beginning on or after January 1, 2020, pass-through entities may elect to pay a Pass-Through Business Alternative Income Tax due on the sum of each of the member’s share of distributive proceeds. What is the Pass-Through Business Alternative Income Tax?įor New Jersey tax purposes, income and losses of a pass-through entity are passed through to its members.