reglab/statecodes huggingface dataset:
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 3 - COMPUTATION OF TAX › Subpart 3-8 - COMPUTATION OF THE PRIOR NET OPERATING LOSS CONVERSION (PNOLC) SUBTRACTION › Section 3-8.4 - PNOLC subtraction - General

Current through Register Vol. 46, No. 28, July 10, 2024
A corporation that has a UNOL must convert the UNOL to a
						PNOLC subtraction pool using the rules in section
						3-8.6  of this Subpart. A taxpayer
						or combined group, in the case of a combined report, is then allowed a PNOLC
						subtraction as computed in sections
						3-8.7 and
						3-8.8  of this Subpart, applied
						before the NOL deduction, in the computation of its business income base. A
						taxpayer or combined group, in the case of a combined group, that is allowed a
						PNOLC subtraction in a taxable year, must claim that subtraction in that
						taxable year.
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 3 - COMPUTATION OF TAX › Subpart 3-8 - COMPUTATION OF THE PRIOR NET OPERATING LOSS CONVERSION (PNOLC) SUBTRACTION › Section 3-8.5 - Corporations that are not allowed a PNOLC subtraction

Current through Register Vol. 46, No. 28, July 10, 2024
The following corporations are not allowed a PNOLC
						subtraction:
(a) A corporation that
					 does not have a UNOL, including a corporation that was a RIC in its base
					 year;
(b) A corporation that had a
					 base year BAP of zero percent, whether or not such corporation has a
					 UNOL;
(c) A corporation that was a
					 member of a combined group that had a base year BAP of zero percent, whether or
					 not such corporation has a UNOL;
(d) A corporation that had a base year tax
					 rate of zero percent, including a corporation that in its base year was a New
					 York S Corporation, whether or not such corporation has a UNOL;
(e) A corporation that was a member of a base
					 year combined group that had a base year tax rate of zero percent, whether or
					 not such corporation has a UNOL;
(f) A corporation that in its base year was
					 not a member of a combined group subject to tax under article 9-A or article 32
					 and that was not subject to tax itself under article 9-A or article 32, whether
					 or not such corporation has a UNOL.
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 3 - COMPUTATION OF TAX › Subpart 3-8 - COMPUTATION OF THE PRIOR NET OPERATING LOSS CONVERSION (PNOLC) SUBTRACTION › Section 3-8.6 - Computation of PNOLC subtraction pool

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The PNOLC subtraction pool for a taxpayer
					 that was not a member of a combined group in its base year is computed as
					 follows:
(1) Determine the tax value of the
					 taxpayer's UNOL. The tax value of the UNOL is the product of:
(i) the amount of the taxpayer's
					 UNOL;
(ii) the taxpayer's base year
					 BAP; and
(iii) the taxpayer's base
					 year tax rate.
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 3 - COMPUTATION OF TAX › Subpart 3-8 - COMPUTATION OF THE PRIOR NET OPERATING LOSS CONVERSION (PNOLC) SUBTRACTION › Section 3-8.7 - Computation of the PNOLC subtraction

Current through Register Vol. 46, No. 28, July 10, 2024
(a) PNOLC subtraction available for use.
(1) In the case of a corporation that is not
					 a member of a combined group, its PNOLC subtraction available for use in its
					 first 2015 taxable year is equal to its tax period PNOLC subtraction allotment
					 (as described in subdivision (b) of this section) for such taxable year. The
					 amount of PNOLC subtraction available for use in any taxable year following the
					 corporation's first 2015 taxable year is equal to its tax period PNOLC
					 subtraction allotment for the taxable year plus any unused PNOLC subtraction
					 carryforward.
(2) In the case of a
					 combined group, the PNOLC subtraction available for use in its first 2015
					 taxable year is the sum of the tax period PNOLC subtraction allotments for such
					 taxable year of all members of the combined group. The amount of PNOLC
					 subtraction available for use by a combined group in any taxable year following
					 its first 2015 taxable year is the sum of the tax period PNOLC subtraction
					 allotments for each such taxable year of all members of the combined group plus
					 the sum of any unused PNOLC subtraction carryforwards of all members of the
					 combined group.
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 3 - COMPUTATION OF TAX › Subpart 3-8 - COMPUTATION OF THE PRIOR NET OPERATING LOSS CONVERSION (PNOLC) SUBTRACTION › Section 3-8.8 - Impact of combined group changes on the PNOLC subtraction

Current through Register Vol. 46, No. 28, July 10, 2024
(a) If a
					 corporation that filed separately subsequently joins a combined group in a
					 later taxable year, the corporation's PNOLC subtraction allotment and unused
					 PNOLC subtraction carryforward are added to the combined group's PNOLC
					 subtraction allotment and unused PNOLC subtraction carryforward, respectively,
					 subject to the rules in section 210(1)(a)(viii)(B) and this Subpart.
(b) If a corporation is a member of a
					 combined group and subsequently leaves that group in a later taxable year, the
					 leaving member of the combined group takes its own PNOLC subtraction allotment
					 with it to use in future taxable years. In addition, such member also takes its
					 own share of the combined group's combined unused PNOLC subtraction
					 carryforward, which shall be based upon its share of the combined group's PNOLC
					 subtraction available for use in the last year it was included in the combined
					 group. If the leaving corporation joins another combined group, its PNOLC
					 subtraction allotment and unused PNOLC subtraction carryforward are added to
					 the combined group's PNOLC subtraction allotment and unused PNOLC subtraction
					 carryforward, respectively, subject to the rules in section 210(1)(a)(viii)(B)
					 and this Subpart. If such corporation does not join another combined group, it
					 is allowed its PNOLC subtraction allotment and unused PNOLC subtraction
					 carryforward on a separate basis, subject to the rules in section
					 210(1)(a)(viii)(B) and this Subpart. The remaining combined group must reduce
					 its unused PNOLC subtraction carryforward by the leaving member's share of such
					 unused carryforward.
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 3 - COMPUTATION OF TAX › Subpart 3-8 - COMPUTATION OF THE PRIOR NET OPERATING LOSS CONVERSION (PNOLC) SUBTRACTION › Section 3-8.10 - Impact of certain corporate acquisitions on the PNOLC subtraction

Current through Register Vol. 46, No. 28, July 10, 2024
In a transaction to which IRC section 381(a) applies, the
						acquiring corporation shall succeed to the balance of the PNOLC subtraction
						allotments and unused PNOLC subtraction carryforward of the distributor or
						transferor corporation, subject to the same restrictions and limitations on the
						use of the PNOLC subtraction allotments and unused PNOLC subtraction
						carryforward to which the distributor or transferor corporation was
						subject.
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 3 - COMPUTATION OF TAX › Subpart 3-8 - COMPUTATION OF THE PRIOR NET OPERATING LOSS CONVERSION (PNOLC) SUBTRACTION › Section 3-8.11 - Record-keeping

Current through Register Vol. 46, No. 28, July 10, 2024
A corporation or combined group with a PNOLC subtraction
						pool must attach to its report Form CT-3.3 and a detailed schedule showing the
						computation of the UNOL, amount of unused PNOLC subtraction allotment
						carryforward and, in the case of a combined group, each member's UNOL and
						amount of unused PNOLC subtraction allotment carryforward, together with all
						material and pertinent facts related to the taxpayer's or combined group's, if
						applicable, claim. Such records shall be retained during the period in which
						the statute of limitations for a change to the PNOLC subtraction may be made by
						the taxpayer or the department.
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 3 - COMPUTATION OF TAX › Subpart 3-9 - NET OPERATING LOSS AND NET OPERATING LOSS DEDUCTIONS FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2015 › Section 3-9.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, sections 210(1)(a)(ix), 210-C(4)(d))
(a)
(1)
					 "Net operating loss (NOL)" means the amount of total business income in a
					 particular taxable year multiplied by the business apportionment factor (BAF)
					 for that taxable year, when such total business income is less than zero. The
					 amount of NOL cannot include any New York investment capital losses, as defined
					 in section
					 3-7.1  of this Part.
(2) In the case of a combined report, the NOL
					 is the combined business loss incurred in a particular taxable year multiplied
					 by the combined BAF for that taxable year. The amount of combined business loss
					 cannot include any New York investment capital losses.
(3) In the case of an alien corporation that
					 under any provision of the IRC is not treated as a "domestic corporation" as
					 defined in IRC section 7701, the NOL is calculated using effectively connected
					 income as a starting point for the business income base.
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 3 - COMPUTATION OF TAX › Subpart 3-9 - NET OPERATING LOSS AND NET OPERATING LOSS DEDUCTIONS FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2015 › Section 3-9.2 - Net operating loss deduction

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, sections 210, 210-C)
(a)
(1) A
					 corporation that reports as part of a consolidated group for Federal income tax
					 purposes, but on a separate basis for purposes of article 9-A, computes its NOL
					 and its net operating loss deduction (NOLD) as if it were filing on a separate
					 basis for Federal income tax purposes.
(2) If the combined group is different than
					 the consolidated group for Federal income tax purposes, then the combined group
					 computes its NOL and NOLD as if it were filing a consolidated return for
					 Federal income tax purposes with the combined group members.
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 3 - COMPUTATION OF TAX › Subpart 3-9 - NET OPERATING LOSS AND NET OPERATING LOSS DEDUCTIONS FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2015 › Section 3-9.4 - Overpayments and underpayments resulting from NOL carrybacks

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A corporation claiming a credit or refund
					 of franchise tax paid under article 9-A for a taxable year to which an NOL is
					 carried back as a deduction must file an amended return for that taxable year
					 within the statute of limitations on credit or refund pursuant to section
					 1087.
(b) For those instances in
					 which an NOL is carried back and the amount of NOL is subsequently changed:
(1) The department may assess additional tax
					 at any time that a deficiency for the taxable year of the loss can be assessed
					 in accordance with section 1083(c)(4). This applies whether or not the NOL was
					 affected by a change in business income or change to the BAF or both.
(2) The department may refund an overpayment
					 at any time that a refund for the taxable year of the loss can be claimed in
					 accordance with section 1087. This applies whether or not the NOL was affected
					 by a change in business income or change to the business apportionment factor
					 or both.
(3) The department will
					 apply the rules in paragraphs (1) and (2) above to all years affected by the
					 revised NOL amount.
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 3 - COMPUTATION OF TAX › Subpart 3-9 - NET OPERATING LOSS AND NET OPERATING LOSS DEDUCTIONS FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2015 › Section 3-9.5 - Income from discharge of indebtedness

Current through Register Vol. 46, No. 28, July 10, 2024
In a year in which the corporation has income from the
						discharge of indebtedness that was excluded from Federal taxable income, the
						corporation must reduce any New York NOLs in the same manner as provided under
						IRC section 108(b) and related regulations, provided reductions to Federal tax
						attributes that are not applicable to New York State are excluded. The amount
						by which the New York NOLs must be reduced is computed by multiplying the New
						York business apportionment factor for the year of discharge by the amount of
						Federal NOL that is required to be reduced.
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 3 - COMPUTATION OF TAX › Subpart 3-9 - NET OPERATING LOSS AND NET OPERATING LOSS DEDUCTIONS FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2015 › Section 3-9.6 - Carryforwards in certain corporate reorganizations and acquisitions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A "separate return limitation year" (SRLY) means any separate return year of a corporation. The carryforward of any NOL incurred by a corporation for any taxable year beginning on or after January 1, 2015, is limited after a reorganization or merger by the same principles for the limitation of the carryforward of an NOL for Federal tax purposes as required under the provisions of IRC sections 381 through 384 and related regulations and any other section of the IRC or related regulations. NOLs arising in taxable years beginning on or after January 1, 2015, and carried forward to a combined report from a SRLY may be used to reduce the combined group's apportioned business income only to the extent of the apportioned business income of the combined group attributable to the acquired loss corporation that carried forward the loss from the SRLY (SRLY limitation).
(b) NOL carryforward that is subject to limitation under IRC section 382 and related provisions. If the corporation's Federal NOL carryforward is limited in a particular year under IRC section 382, the amount of NOL carryforward allowed for New York State purposes is similarly limited. The IRC section 382 limitation adjusted for New York is the product of the annual IRC section 382 limitation and the business apportionment factor for the current tax year. In addition, if the NOLD of the combined group is less than such annual limitation in a given tax year, the annual IRC section 382 limitation adjusted for New York in the next taxable year shall be increased by such excess.
(c) The SRLY limitation described in subdivision (a) will not apply where there is an overlap with IRC section 382 as described in subdivision (b), if it would not apply for federal income tax purposes.
(d) In the event the NOLs described in subdivision (a) or (b) of this section are from the same loss year as losses of the acquiring corporation, the amount of SRLY limited carryforward under subdivision (a) or the IRC section 382 limited carryforward under subdivision (b) shall be applied before applying any other NOL against the remaining business income of the combined group.
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 3 - COMPUTATION OF TAX › Subpart 3-11 - [Repealed] › Section 3-11.1

Current through Register Vol. 46, No. 28, July 10, 2024
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 3 - COMPUTATION OF TAX › Subpart 3-12 - [Repealed] › Section 3-12.1

Current through Register Vol. 46, No. 28, July 10, 2024
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 3 - COMPUTATION OF TAX › Subpart 3-13 - [Repealed] › Section 3-13.1

Current through Register Vol. 46, No. 28, July 10, 2024
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 3 - COMPUTATION OF TAX › Subpart 3-13 - [Repealed] › Section 3-13.2

Current through Register Vol. 46, No. 28, July 10, 2024
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 3 - COMPUTATION OF TAX › Subpart 3-13 - [Repealed] › Section 3-13.3

Current through Register Vol. 46, No. 28, July 10, 2024
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 3 - COMPUTATION OF TAX › Subpart 3-13 - [Repealed] › Section 3-13.4

Current through Register Vol. 46, No. 28, July 10, 2024
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 3 - COMPUTATION OF TAX › Subpart 3-13 - [Repealed] › Section 3-13.5

Current through Register Vol. 46, No. 28, July 10, 2024
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 3 - COMPUTATION OF TAX › Subpart 3-13 - [Repealed] › Section 3-13.6

Current through Register Vol. 46, No. 28, July 10, 2024
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 3 - COMPUTATION OF TAX › Subpart 3-13 - [Repealed] › Section 3-13.7

Current through Register Vol. 46, No. 28, July 10, 2024
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 4-1 - GENERAL › Section 4-1.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, sections 208(1), 210-A)
For purposes of this Part, the following definitions
						apply:
(a) "Billing address" means the
					 location indicated in the books and records of the corporation as the primary
					 address with respect to a customer's account.
(b)
(1)
					 "Commercial domicile" is determined by the use of a hierarchy of methods for
					 business entities referenced in subparagraphs (i) and (ii) of this paragraph.
					 The methods must be applied sequentially and be based on the information known
					 to the corporation or publicly or readily available information. Corporations
					 must exercise due diligence before abandoning the first method in this
					 hierarchy and proceeding to the second method. The hierarchy is:
(i) the seat of management and control of the
					 business entity; and
(ii) the
					 billing address of the business entity in the corporation's records.
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 4-1 - GENERAL › Section 4-1.2 - General rules for apportionment

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A)
(a) All corporations must apportion within
					 and without New York State their total business income and business capital by
					 a business apportionment factor (BAF) that is a fraction. The numerator and
					 denominator of the BAF includes only those receipts, net income, net gains, and
					 other items described in section 210-A and this Subchapter that are included in
					 the computation of entire net income for the taxable year. The numerator of the
					 BAF is the sum of all amounts required to be included in the numerator pursuant
					 to section 210-A and this Subchapter (New York receipts) and the denominator of
					 the BAF is the sum of all amounts required to be included in the denominator
					 pursuant to section 210-A and this Subchapter (everywhere receipts).
(b) The following amounts shall not be
					 included in either New York receipts or everywhere receipts:
(1) gross income from investment capital,
					 even if such income is included in business income pursuant to the 8% of entire
					 net income (ENI) limitation on gross investment income.
(2) any portion of gross other exempt income
					 generated by stock that is not marked to market.
(3) any portion of gross other exempt income
					 generated by stock that is marked to market in instances where the taxpayer did
					 not make the fixed percentage election for qualified financial
					 instruments.
(4) amounts specified
					 in section 208(9)(a) to be subtracted from federal taxable income in the
					 computation of ENI (other than the subtractions for qualified banks provided
					 for in section 208(9)(a)(19)).
(5)
					 amounts specified in section 208(9)(b) to be added back to federal taxable
					 income in the computation of ENI (other than the addition modification for
					 alien corporations not deemed domestic under any provision of the IRC provided
					 for in section 208(9)(b)(1) and the addition modification for dividends or
					 interest provided for in section 208(9)(b)(2)).
(6) certain reimbursements of expenses paid
					 for by the corporation on behalf of a customer that are received from the
					 customer in advance or received from the customer and placed by the corporation
					 into a separate account, provided the reimbursement does not exceed the amount
					 of expenses, and does not exceed reimbursements received by the corporation
					 under a cost-sharing arrangement the corporation has with another company where
					 that cost-sharing arrangement does not include any mark-up of the expense. In
					 the case of a cost-sharing arrangement that the corporation has with another
					 company that includes a mark-up of expenses, only the amount of the mark-up
					 shall be included in business receipts.
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 4-1 - GENERAL › Section 4-1.4 - Installment sales

Current through Register Vol. 46, No. 28, July 10, 2024
In the case of an asset sale where the proceeds of the
						sale are received by the seller on an installment basis as provided for in IRC
						section 453, the portion of the receipts or gains attributable to New York must
						be determined in the year of the sale by applying the apportionment rules in
						section 210-A and this Subchapter. The same ratio of New York receipts to
						everywhere receipts from the installment income for each type of asset shall be
						used in subsequent years to determine how much of the installment payment is
						included in New York receipts. The entire amount of the annual installment is
						included in everywhere receipts.
(a)
					 Example.
Corporation C sells its building in New York in the 2021
						tax year and has a $5,000,000 gain. It has no other sales of real property.
						Under the sales agreement, the proceeds of the sale will be paid to Corporation
						C in 5 equal annual installments. As the real property is located in New York,
						the entire gain is attributable to New York and $1,000,000 is included in New
						York receipts and everywhere receipts each year.
In tax year 2021, besides the installment gain,
						Corporation C has $20,000,000 of rental income from its New York property and
						$5,000,000 of rental income from real property located outside New York.
						Corporation C has $21,000,000 of New York receipts ($1,000,000 of the gain from
						the New York real estate installment sale and $20,000,000 of rental income from
						the New York property) and $26,000,000 of everywhere receipts ($1,000,000 of
						the gain from the real estate installment sale and $25,000,000 of rental income
						from real property located within and without New York State). Its BAF for the
						2021 tax year is 0.807692. In tax year 2022, beside the installment gain,
						Corporation C has only $2,000,000 of rental income from real property located
						outside of New York. Corporation C has $1,000,000 of New York receipts (its
						second installment of the gain from New York real property) and $3,000,000 of
						everywhere receipts ($1,000,000 of its second installment of gains from the
						sale of real property plus $2,000,000 of rental income from real property
						located outside New York State). Its BAF for the 2022 tax year is
						0.333333.
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 4-1 - GENERAL › Section 4-1.5 - Apportionment on combined report

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-C(5))
The apportionment factor on a combined report is
						computed as though the corporations included in the combined report are a
						single corporation, unless otherwise provided, and is computed in accordance
						with the following principles.
(a) All
					 intercorporate business receipts, income, gains and losses are eliminated in
					 computing the combined group's New York receipts or everywhere receipts.
					 Intercorporate receipts, income, gains and losses are receipts, income, gains
					 and losses realized by any corporation included in the combined report from a
					 transaction with any other corporation included in the combined
					 report.
(b) Net gains (not less
					 than zero), marked to market net gains (not less than zero), net interest
					 income (not less than zero), and net income (not less than zero) from any
					 respective type of asset on a combined report are computed as follows:
(1) For purposes of computing net gains (not
					 less than zero) for all members of the combined group, the aggregate gain from
					 the sale of one type of asset is reduced by the aggregate loss from the sale of
					 the same type of asset subject to the same sourcing rule in section 210-A and
					 this Subchapter, provided that the result cannot be less than zero.
(2) For purposes of computing net interest
					 income (not less than zero) from Federal funds for all members of the combined
					 group, the aggregate amount of interest income from Federal funds is reduced by
					 the aggregate amount of interest expense from Federal funds, provided the
					 result cannot be less than zero.
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 4-1 - GENERAL › Section 4-1.6 - Power of the Commissioner of Taxation and Finance to adjust the business apportionment factor

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(11))
(a) Generally, the BAF results in a fair
					 apportionment of the corporation's business capital and business income to New
					 York State. However, in certain instances, the BAF may not result in a proper
					 reflection of the taxpayer's business income or business capital in New York
					 State and the commissioner, as an exercise of discretion or at the request of
					 the taxpayer, is authorized to adjust the BAF in order to properly and fairly
					 reflect the taxpayer's business income or business capital within New York. In
					 the case of a combined report, the term "taxpayer" in this section means the
					 combined group, and the request to adjust the BAF on the combined report must
					 be made by the designated agent. If the BAF is adjusted, it must be calculated
					 to produce a fair and proper apportionment of the business income and business
					 capital of the taxpayer, or in the case of a combined report, the combined
					 group, reasonably attributable to New York State.
(b) When it appears that the BAF does not
					 fairly and properly reflect the business income or business capital of the
					 taxpayer in New York State, the commissioner, as an exercise of discretion or
					 at the request of the taxpayer, may adjust the BAF by:
(1) excluding one or more items of receipts,
					 net income, net gain or other items included in the determination of the
					 BAF;
(2) including one or more
					 other items in the determination of the BAF; or
(3) any other similar or different method
					 calculated to effect a fair and proper apportionment of the taxpayer's business
					 income and business capital reasonably attributable to New York
					 State.
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 4-1 - GENERAL › Section 4-1.7 - Federal changes

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, sections 211(3), 1083, 1087)
The business apportionment factor (BAF), as determined
						under section 210-A and this Subchapter, upon which the taxpayer's report (or
						any additional assessment) was based, must not be changed during the additional
						period of limitation allowed in the case of non-filing of a report of a Federal
						change, correction or renegotiation of tax, or a computation or re-computation
						of tax; or in the case of a report of a Federal change, correction or
						renegotiation of tax, or a computation or re-computation of tax; or in the case
						of a deficiency based on a net operating loss carryback or a net capital loss
						carryback. Both the commissioner and the taxpayer are precluded from adjusting
						the BAF in such cases. Under the same circumstances, a petition for the
						redetermination of a deficiency or a notice of deficiency does not open the
						BAF.
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 4-2.1 - Receipts and net gains from the sale of tangible personal property

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(2)(a))
(a) Receipts and net gains (not less than
					 zero) from the sale of tangible personal property are included in New York
					 receipts if paragraph (1), (2), or (3) of this subdivision applies. All
					 receipts and net gains (not less than zero) from the sale of tangible personal
					 property are included in everywhere receipts.
(1) The property is shipped via common or
					 contract carrier, irrespective of whether the shipment is arranged by the
					 corporation or the purchaser, or via the corporation's vehicle or other means
					 of transportation, to a point in New York State. Where property is so shipped
					 to a point outside New York State, the receipts from the sale of such property
					 are not included in New York receipts unless the final destination of the
					 property is a point in New York State. See subdivision (c) of this section
					 regarding evidence of destination.
(2) The possession of the property is
					 transferred to a purchaser or purchaser's designee at a point in New York
					 State, unless the f i n a l destination of the property is a point outside New
					 York State. Where possession of the property is transferred in New York State,
					 it is presumed that the final destination is a point in New York State unless
					 there is sufficient evidence to demonstrate that the final destination is a
					 point outside New York State. See subdivision (c) of this section regarding
					 evidence of destination.
(3) The
					 possession of the property is transferred to a purchaser or purchaser's
					 designee at a point outside New York State, where the final destination of the
					 property is a point in New York State. Where possession of the property is
					 transferred outside New York State, it is presumed that the final destination
					 is a point outside New York State unless there is sufficient evidence to
					 demonstrate that the destination is a point in New York State. See subdivision
					 (c) of this section regarding evidence of destination.
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 4-2.2 - Net gains from the sale of real property

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(2)(d))
(a) Net gains (not less than zero) from the
					 sales of real property located in New York are included in New York receipts.
					 Net gains (not less than zero) from sales of real property located within and
					 without New York
State are included in everywhere receipts.
(b) For each sale of real
					 property, the corporation must compute a gain or loss from the sale by
					 subtracting its adjusted basis in the real property from the sale price of the
					 real property. If the sale price exceeds the adjusted basis, the result is a
					 gain. If the sale price is less than the adjusted basis, the result is a
					 loss.
(c) To determine the amount
					 of net gains from sales of real property to be included in the numerator and
					 denominator of the BAF, the corporation first must subtract the sum of all
					 losses computed under subdivision (b) of this section from the sum of all gains
					 computed under subdivision (b). If the result is equal to or less than zero, no
					 amount is included in New York receipts and everywhere receipts. If the total
					 amount of net gains (not less than zero) from sales of real property located in
					 New York exceeds the net gains (not less than zero) from sales of real property
					 located within and without New York State, the amount included in New York
					 receipts is limited to the amount included in everywhere receipts.
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 4-2.4 - Net income from qualified financial instruments for corporations other than non-captive REITs and non-captive RICs

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(5)(a))
The following rules apply to corporations that are not
						subject to section
						9-4.3  of this Subchapter.
(a)
(1) A
					 qualified financial instrument means any financial instrument that meets the
					 following criteria:
(i) the instrument is
					 described in one of the specified clauses of section 210-A(5)(a)(2) clause: (A)
					 -loans, (B) - Federal, state and municipal debt, (C) - asset backed securities
					 and other government agency debt, (D) - corporate bonds, (G) - stock or
					 partnership interest, (H) - other financial instruments, or (I) - commodities;
					 and
(ii) the instrument has been
					 marked to market in the taxable year.
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 4-2.6 - Interest income and net gains from asset backed securities and other government agency debt

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(5)(a)(2)(C))
(a)
(1) 8%
					 of interest income from:
(i) asset backed
					 securities or other securities issued by government agencies, including but not
					 limited to securities issued by the Government National Mortgage Association,
					 the Federal National Mortgage Association, the Federal Home Loan Mortgage
					 Corporation, or the Small Business Administration; or
(ii) asset backed securities issued by other
					 entities, is included in New York receipts.
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 4-2.7 - Interest income and net gains from corporate bonds

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(5)(a)(2)(D))
(a) Interest income from corporate bonds is
					 included in New York receipts if the commercial domicile of the issuing
					 corporation is in New York. All interest income from corporate bonds is
					 included in everywhere receipts.
(b)
(1) 8%
					 of net gains (not less than zero) from sales of corporate bonds sold through a
					 registered securities broker or dealer or through a licensed exchange is
					 included in New York receipts. 100% of all such net gains (not less than zero)
					 is included in everywhere receipts.
(2) The amount of net gains (not less than
					 zero) from sales of corporate bonds, other than bonds sold through a registered
					 securities broker or dealer or through a licensed exchange, included in New
					 York receipts is the product of net gains from the sale of all such bonds and a
					 fraction, the numerator of which is gross proceeds from sales of such bonds to
					 purchasers located within New York State and the denominator of which is gross
					 proceeds from sales of such bonds to purchasers located within and without New
					 York State. Net gains (not less than zero) from the sale of such bonds shall be
					 included in everywhere receipts.
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 4-2.8 - Net interest income from reverse repurchase agreements and securities borrowing agreements

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(5)(a)(2)(E))
(a) 8% of net interest income (not less than
					 zero) from reverse repurchase agreements and securities borrowing agreements is
					 included in New York receipts. Net interest income (not less than zero) from
					 reverse repurchase agreements and securities borrowing agreements is included
					 in everywhere receipts.
(b) Net
					 interest income from reverse repurchase agreements and securities borrowing
					 agreements is determined for purposes of this section after the deduction of
					 the interest expense from the corporation's repurchase agreements and
					 securities lending agreements, but cannot be less than zero. For this
					 calculation, the amount of such interest expense is the interest expense
					 associated with the sum of the value of the corporation's repurchase agreements
					 where it is the seller/borrower plus the value of the corporation's securities
					 lending agreements where it is the securities lender, provided such sum is
					 limited to the sum of the value of the corporation's reverse repurchase
					 agreements where it is the purchaser/lender plus the value of the corporation's
					 securities lending agreements where it is the securities borrower.
(c) Example.
Corporation A has $4,000 of interest income from reverse
						repurchase agreements and $5,000 of interest expense from repurchase
						agreements. Corporation A also has $6,000 of interest income from securities
						borrowing agreements and $3,000 of interest expense from securities lending
						agreements for the same year. To determine the amount of net interest income
						from these transactions, Corporation A must reduce the sum of the interest
						income from reverse repurchase agreements and securities borrowing agreements
						by the sum of the interest expense from repurchase agreements and securities
						lending agreements. The result is $2,000 ($4,000 + $6,000 - $5,000 -$3,000) of
						net interest income from reverse repurchase and securities borrowing agreements
						that is included in everywhere receipts. Corporation A must also report $160
						(8% of $2,000) in New York receipts.
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 4-2.9 - Net interest income from Federal funds

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(5)(a)(2)(F))
(a) 8% of net interest income (not less than
					 zero) from Federal funds is included in New York receipts. The net interest
					 income (not less than zero) from Federal funds is included in everywhere
					 receipts.
(b) Net interest income
					 from Federal funds is determined after the deduction of interest expense from
					 Federal funds. Interest income from Federal funds means interest income paid by
					 another institution in the Federal reserve system for borrowing the
					 corporation's funds deposited at a Federal reserve bank. Interest expense from
					 Federal funds includes the interest paid by the corporation to another
					 institution in the Federal reserve system for the use of the other
					 institution's funds deposited at a Federal reserve bank.
(c) Interest paid to the corporation directly
					 by the Federal reserve on reserves maintained at a Federal reserve bank does
					 not constitute interest income from Federal funds for purposes of this section
					 and is apportioned under the rules for other financial instruments.
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 4-2.10 - Net income from commodities

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(5)(a)(2)(I))
(a)
(1) The
					 amount of net income (not less than zero) from all commodities included in New
					 York receipts or everywhere receipts is determined separately for sales of all
					 commodities actually delivered and sales of commodities where delivery does not
					 actually occur.
(i) The amount of net income
					 (not less than zero) included in New York receipts from sales of commodities
					 actually delivered is the product of such net income (not less than zero) and a
					 fraction, the numerator of which is the amount of gross receipts from sales of
					 all commodities actually delivered to points within New York State and the
					 denominator of which is the amount of all gross receipts from sales of
					 commodities actually delivered.
(ii) The amount of net income (not less than
					 zero) included in New York receipts from commodities where delivery does not
					 actually occur is the product of such net income (not less than zero) and a
					 fraction, the numerator of which is the amount of gains from sales of
					 commodities where delivery does not actually occur to purchasers located in the
					 state and the denominator of which is the amount of gains from all sales of
					 commodities where delivery does not actually occur. 100% of net income (not
					 less than zero) from sales of commodities actually delivered is included in
					 everywhere receipts. 100% of net income (not less than zero) from sales of
					 commodities where delivery does not actually occur is included in everywhere
					 receipts.
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 4-2.12 - Interest income, net gains, and other income from other financial instruments

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(5)(a)(2)(H))
(a) Interest income, net gains (not less than
					 zero), and other income (not less than zero) from other financial instruments
					 includes interest income, net gains, and other income from financial
					 instruments that are not described in the rules for section
					 210-A(5)(a)(2)(A)-(G), (I), and (J) and the regulations in this
					 Subchapter.
(b) Interest income
					 from other financial instruments includes, but is not limited to, interest
					 income on:
(1) deposit accounts;
(2) money market accounts;
(3) debt issued by a country, or political
					 subdivision thereof, other than the United States; and
(4) reserves maintained with the Federal
					 Reserve.