N.J.A.C. 18:7-5.6 - Adjustment of Entire Net Income to the Period Covered by Return; How Computed

(a) If the entire net income required to be reported is for a period other than a period covered by the taxpayer's Federal income tax return, the taxpayer shall compute its net income as follows:

1. Its Federal taxable income is first adjusted in the manner set forth on N.J.A.C. 18:7-5.1 through 5.4;

2. The result is then divided by the number of calendar months or parts thereof covered by the Federal income tax return;

3. The result is then multiplied by the number of the calendar months or parts thereof covered by the return under the Corporation Business Tax Act. A part of a month shall be deemed to be a month.

(b) Combined groups filing a New Jersey combined return report the entire net income of the combined group members based on the group privilege period. See N.J.A.C. 18:7-21 for more information.