N.J. Admin. Code § 18:7-8.12 - Other business receipts
(a) All other
business receipts earned by the taxpayer within New Jersey are allocable to New
Jersey. Other business receipts include all items of income entering into the
determination of entire net income during the year for which the business
allocation factor is being computed and is not otherwise provided for in these
rules. Examples of such business receipts include, but are not limited to,
interest income, dividends, governmental subsidies, or proceeds from sales of
scrap.
(b) For treatment of
dividends see
N.J.A.C.
18:7-8.7(c)2,
Example.
(c) For treatment of
receipts from sales of capital assets, see
N.J.A.C.
18:7-8.9.
(d) Receipts from the sale of real property
situated in New Jersey are earned in New Jersey.
(e) Intangible income not apportioned by
other provisions of these rules is included in the numerator of the receipts
fraction where the taxable situs of the intangible is in this State. The
taxable situs of an intangible is the commercial domicile of the owner or
creditor unless the intangible has been integrated with a business carried on
in another state. Notwithstanding that the commercial domicile is outside this
State, the taxable situs is in New Jersey to the extent that the intangible has
been integrated with a business carried on in this State. Example: Taxpayer has
its domicile outside this State. It is in the business of lending money, some
of which is loaned to New Jersey residents. Interest income and related fees
(for example, late payment fees, annual fees, etc.) recognized from such loans
is income derived from sources within this State and, as such, is earned in New
Jersey. That interest and fee income is includable in the numerator of the
receipts fraction.
(f) For
treatment of non-operational income, see
N.J.A.C.
18:7-8.17.
(g) For sourcing of I.R.C. § 951A
income, I.R.C. § 250(b) income, and the related I.R.C. §250(a)
deduction, see
N.J.A.C.
18:7-5.19.
(h) Generally, receipts derived from (or
involving) digital assets are integrated in the business of a taxpayer and most
of the income from transactions involving digital assets is operational income.
Receipts from the sales, gains, or disposition of digital assets or involving
digital assets shall be sourced based on the nature of the underlying
transaction and the digital asset, otherwise such receipt shall be sourced
according to (e) above if none of the other rules are applicable.
(i) Receipts from or involving the sales,
gains, or disposition of central bank digital currency shall be sourced based
on the nature of the underlying transaction and asset (as though the central
bank digital currency was fiat currency unless classified differently by the
original central bank issuing the central bank digital currency), otherwise
such receipt shall be sourced according to (e) above if none of the other rules
are applicable.
(j) Gaming receipts
(from wagering) should be included and reported as other business receipts (to
the extent such receipts are not services described at
N.J.A.C.
18:7-8.10A) in the same manner they are
included for Federal purposes in accordance with U.S. G.A.A.P. or
I.F.R.S.
Notes
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(a) All other business receipts earned by the taxpayer within New Jersey are allocable to New Jersey. Other business receipts include all items of income entering into the determination of entire net income during the year for which the business allocation factor is being computed and is not otherwise provided for in these rules. Examples of such business receipts include, but are not limited to, interest income, dividends, governmental subsidies, or proceeds from sales of scrap.
(b) For treatment of dividends see N.J.A.C. 18:7-8.7(c)2, Example.
(c) For treatment of receipts from sales of capital assets, see N.J.A.C. 18:7-8.9.
(d) Receipts from the sale of real property situated in New Jersey are earned in New Jersey.
(e) Intangible income not apportioned by other provisions of these rules is included in the numerator of the receipts fraction where the taxable situs of the intangible is in this State. The taxable situs of an intangible is the commercial domicile of the owner or creditor unless the intangible has been integrated with a business carried on in another state. Notwithstanding that the commercial domicile is outside this State, the taxable situs is in New Jersey to the extent that the intangible has been integrated with a business carried on in this State. Example: Taxpayer has its domicile outside this State. It is in the business of lending money, some of which is loaned to New Jersey residents. Interest income and related fees (for example, late payment fees, annual fees, etc.) recognized from such loans is income derived from sources within this State and, as such, is earned in New Jersey. That interest and fee income is includable in the numerator of the receipts fraction.
(f) For treatment of non-operational income, see N.J.A.C. 18:7-8.17.
(g) For sourcing of I.R.C. § 951A income, I.R.C. § 250(b) income, and the related I.R.C. §250(a) deduction, see N.J.A.C. 18:7-5.19.