Adler v. Director, Division of Taxation

KUSKIN, J.T.C.

Plaintiffs are shareholders of a New Jersey S corporation. They challenge a determination by defendant Director of the Division of Taxation that charitable contributions made by the corporation are not deductible in calculating their respective shares of S corporation income under N.J.S.A. 54A:5-lp, a provision of the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1 to:10-12 (the “GIT Act”). For the reasons set forth below, I hold that the contributions are deductible.

I

Facts

The following facts have been stipulated by the parties. Myron Manufacturing Corporation (“Myron Corp.”)…