Bob W./NYEA, I need some help

[JoshinNC]

I am working on an LLC return that has 3 members, 1 NC resident, 2 NY residents. They also have one employee in NJ (non-member). They are registered in NJ as a foreign LLC for payroll purposes, but have no NJ nexus. Is an NJ return required?

[BOB W]

Josh....

.... I'm thinking????????????

Well I'm confused, as you are, because you said the LLC is registered as a foriegn LLC. Usually registering for payroll withholding does not require registering as a foreign entity.

You should call NJ and discuss what the situation is, ( payroll only withholding for a NJ resident that works in NY (I'm assuming he works in NY)).

[JoshinNC]

No, the employee works from her home, in Upper Saddle River

She is a sales person (W-2), but she works from her home. So her actual work location is NJ. We registered the company for withholding in NJ, and they made us go through the business registration process. Maybe we didn't actually set them up as a foreign LLC (this would make things alot easier). I'll check it out and get back to you.

Thanks!

[winnie]

NJ tax

Most states I have seen outside of home state make you register the corporation (LLC) when you have payroll. My experience is that you have to file a NJ income tax return, unless the person is actually working somewhere else. I had a NC S corp with nexus in PA. They had to register in NJ for payroll withholding for NJ residents that worked in PA. I had a citation at that time (a few years ago) from the NJ code that my particular situation did not require NJ income tax return. I think your situation does require.

Winnie in Apex, nc

[JoshinNC]

Thanks Winnie!

I'm just down Hwy 55 from you in Fuquay. Welcome to the board.

[winnie]

Thanks

You are very close!

[JoshinNC]

Ok, now the depreciation

Supposedly, from my reading, NJ does not allow any Sec. 179 deduction when total eligible assets placed in service exceed $225,000. My clients put about $420,000 in service in 2006, but all in NC. However, when I am preparing the return my software is adjusting the NJ income by the difference between the Sec. 179 taken on the 1065 and the allowed NJ depreciation. Is this adjustment required if the property was not placed in service in NJ? If not, does anyone know how to make my software stop making the adjustment (I use Drake)?

Thanks in advance.

[carlaw]

NJ Depreciation

Hi Josh,

I am a Tax Analyst for Drake Software. I would like to help you with your depreciation question. Would you email me at Carla.WoolbrightATDrakesoftware.com, using an @ for the AT?

Thanks.

Carla