Governor Chris Christie • Lt.Governor Kim Guadagno  
The Official Web Site For The State of New Jersey - Department of Treasury
Global Navigation
FAQs Departments/ Agencies Services A to Z NJ Home Page
Disclaimer


Dantzler Decision


In Dantzler v. Director, 18 NJTax 490 (1999), the New Jersey Tax Court decided whether certain ordinary business expenses are deductible by a individual partner in calculating his distributive share of partnership income in accordance with N.J.S.A. 54A:5-1(k).

The following categories of deductions were treated in Dantzler thus:

  • Political contributions were not deductible as such.
  • Pension contributions by a partner are deductible to the extent that the pension contributions are to a 401(k) plan, but they are not deductible if they are in another type of pension plan.
  • Specific Medical Insurance premiums for the partner are deductible by the individual to the extent that they exceed the Gross Income Tax Act's two-percent requirement, but the partner may not deduct them from partnership income as such.
  • Interest expense on the capital contribution loan required for participation in the partnership is deductible.
  • FICA payments are not deductible by a partner.
With regard to this decision, the Division is currently reviewing the partnership regulations at N.J.A.C. 18:35-1.3. An additional update will be issued when the partnership regulations are revised.

Last Updated: Thursday, 09/23/10



Taxation: Home | Site Index | Site Help | Legislature | Judiciary | Revenue | IRS | Other Tax Links
Treasury: Home | ServicesPeopleBusinesses | Divisions/AgenciesForms
Statewide:
NJ Home | Services A to Z | Departments/Agencies | FAQs
Copyright © State of New Jersey, 1996-
This site is maintained by the Division of Revenue and Enterprise Services.


Accessibility Statement Legal Statement Privacy Notice Contact Us Open Public Records Act