N.J. Admin. Code § 18:7-1.21

Current through Register Vol. 56, No. 21, November 4, 2024

Section 18:7-1.21 - Definition of qualified investment partnership

(a) "Qualified investment partnership" means a partnership under this Act that has more than 10 members or partners with no member or partner owning more than a 50 percent interest in the partnership and that derives at least 90 percent of its gross income from dividends, interest, payments with respect to securities loans, and gains from the sale or other disposition of stocks or securities or foreign currencies or commodities or other similar income (including, but not limited to, gains from swaps, options, futures or forward contracts) derived with respect to its business of investing or trading in those stocks, securities, currencies, or commodities, but "investment partnership" shall not include a "dealer in securities" within the meaning of I.R.C. § 1236. 26 U.S.C. § 1236.

1. If a partnership would otherwise qualify as a "qualified investment partnership," except that it has 10 or fewer partners, such partnership is deemed a "qualified investment partnership," if:

i. It is managed by an independent third party for a fee;

ii. There is no direct or indirect relationship between the manager and any of the partners; and

iii. There is no direct or indirect affiliation between or among the partners.

N.J. Admin. Code § 18:7-1.21

Amended by 49 N.J.R. 1694(a), effective 6/19/2017