New Jersey ~ Corporate, Personal Income Taxes: Failure of a Shareholder Trust to Make New Jersey ESBT Election Did Not Remove S Corporation Status

first_imgCCH Tax Day ReportIn a letter ruling the New Jersey Division of Taxation, Regulatory Services Branch, stated that under the New Jersey gross (personal) income tax an S corporation could have a shareholder that was a trust that did not elect to become a New Jersey Electing Small Business Trust (ESBT) and still not lose its New Jersey S corporation status. The taxpayer would still have to properly file Form CBT-2553, New Jersey S Corporation or New Jersey QSSS Election. Further, the trust would need to file Form NJ-1041, Fiduciary Return, and compute its tax in the same manner as a regular (non-ESBT) trust. The taxpayer was an S corporation for federal income tax purposes. One of its shareholders was a trust that historically had been a grantor trust. However, the trust lost its grantor trust status and then elected to be taxed as an ESBT for federal tax purposes. If the trust had not made the federal ESBT election, the taxpayer would have lost its status as an S corporation for federal income tax purposes because it would have had an ineligible shareholder. A trust can only become an ESBT for New Jersey tax purposes if it affirmatively files a New Jersey ESBT election. In New Jersey, the election to be treated as an ESBT is not a mandatory election. Thus, a federal ESBT is permitted to file Form NJ-1041, Fiduciary Return, when the New Jersey ESBT election has not been made. Further, if the trust did not elect to be a New Jersey ESBT and file Form NJ-1041SB, Fiduciary Return Electing Small Business Trust, the New Jersey S corporation’s status would not be affected by the shareholder’s type of trust.LR: 2016-1-GIT, New Jersey Division of Taxation, September 28, 2016, ¶401-994last_img read more

Manavjit Sandhu wins World Cup bronze, misses out on Olympic quota

first_imgFormer World Champion Manavjit Sandhu missed out on an Olympic quota by a whisker as he claimed India’s first podium with a bronze at the World Cup Shotgun Championships here.The veteran was involved in an exciting final against the world’s best trap shooters before settling for third place in the event, which offered two spots for next year’s Rio Olympics.Sandhu, who entered the bronze medal match after winning the slot through a shoot-off in the semifinal, had to endure yet another shoot-off after both he and Portuguese Joao Azevedo shot an identical 12 targets out of 15.It was in this second shoot-off that the veteran emerged victorious accounting for three targets out of five to Joao’s two.Italian Massimo Fabbrizi, who shot 12 targets in the final as opposed to 13 in the semifinal, won gold while the silver went to famed Australian shooter Michael Diamond, who shot 11 targets in the final. The top two earned their Olympic quotas.last_img read more