New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-2 - SPECIFIC APPORTIONMENT RULES › Section 4-2.11 - Marked to market net gains

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(5)(a)(1) and (2)(J))
(a) If the taxpayer or designated agent, in
					 the case of a combined group, has made the fixed percentage method election in
					 the manner required by subdivision (c) of section
					 4-2.4  of this Subpart, then 8% of
					 marked to market net gains (not less than zero) from each type of qualified
					 financial instrument is included in New York receipts and 100% of such marked
					 to market net gains are included in everywhere receipts.
(b) If the taxpayer or designated agent, in
					 the case of a combined group, has not made the fixed percentage method
					 election, then the amount of marked to market net gains from qualified
					 financial instruments included in New York receipts and everywhere receipts is
					 determined using the rules set forth in paragraphs (1), (2) and (3) of this
					 subdivision. The amount of marked to market net gains (not less than zero) from
					 instruments that are not qualified financial instruments included in New York
					 receipts or everywhere receipts is also determined using the rules set forth in
					 paragraphs (1), (2) and (3) of this subdivision.
(1) Marked to market net gains (not less than
					 zero) from stocks are not included in New York receipts or everywhere receipts,
					 unless the commissioner has required the corporation's net gains from sales of
					 stocks be included in the apportionment factor. Marked to market net gains (not
					 less than zero) from partnership interests are not included in New York
					 receipts or everywhere receipts, unless the commissioner has required that the
					 corporation's net gains from the sale of partnership interests be included in
					 the apportionment factor.
(2) The
					 amount of marked to market net gains (not less than zero) from each type of
					 financial instrument included in New York receipts is determined by multiplying
					 the marked to market net gains (not less than zero) from each such type of
					 financial instrument by a fraction, the numerator of which is the net gains
					 from actual sales of that type of financial instrument included in New York
					 receipts determined under the applicable clause of section 210-A(5)(a)(2) and
					 regulations in this Subchapter and the denominator of which is the net gains
					 from actual sales of that type of financial instrument included in everywhere
					 receipts determined under the applicable clause of section 210-A(5)(a)(2) and
					 the regulations in this Subchapter. Marked to market net gains (not less than
					 zero) from the financial instruments subject to the rules in this paragraph are
					 included in everywhere receipts.
(3) If there are no actual sales of a type of
					 financial instrument that is marked to market or if the corporation has an
					 overall net loss from the actual sale of that type of financial instrument, the
					 amount of marked to market net gains (not less than zero) from that type of
					 financial instrument included in New York receipts is determined by multiplying
					 the marked to market net gains (but not less than zero) from that type of
					 financial instrument by a fraction, the numerator of which is the sum of the
					 amount of receipts included in New York receipts under clauses (A) - (I) of
					 section 210-A(5)(a)(2) and subclause (ii) of section 210-A(5)(a)(2)(J), and the
					 denominator of which is the sum of the amount of receipts included in the
					 everywhere receipts under clauses (A) - (I) of section 210-A(5)(a)(2) and
					 subclause (ii) of section 210-A(5)(a)(2)(J). 100% of marked to market net gains
					 (not less than zero) for which the amount to be included in New York receipts
					 is determined under this paragraph are included in everywhere
					 receipts.