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 9 - SPECIAL ENTITIES › Subpart 9-2 - CORPORATE PARTNERS › Section 9-2.6 - Election by certain foreign limited partners

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 209(1)(f))
(a)
(1) A
					 foreign corporation that is a limited partner in one or more limited
					 partnerships, that is subject to tax under article 9-A solely as a result of
					 the application of section
					 1-2.3(b)  of this
					 Subchapter and that does not file on a combined basis for article 9-A purposes,
					 may elect to compute its tax bases by taking into account only its distributive
					 share of each partnership item of receipts, income, gain, loss and deduction
					 (including any modifications relating thereto) and its proportionate part of
					 each partnership asset and liability, and each partnership activity, of all
					 such limited partnerships that are doing business, employing capital, owning or
					 leasing property, maintaining an office, or deriving receipts in New York
					 State, whether or not such share is actually distributed. However, such
					 election may not be made with respect to a partnership if the limited
					 partnership and corporate group are engaged in a unitary business wherever
					 conducted. The election shall be applicable to all of those limited partnership
					 interests that are not engaged in a unitary business with the corporate group
					 ("election partnerships"). The term corporate group means the corporate limited
					 partner itself or, if it is a member of an affiliated group, the corporate
					 limited partner and all other members of such affiliated group. The term
					 affiliated group shall have the same meaning as provided in section
					 9-2.2(d)(1)  of
					 this Subpart.
(2) If the foreign
					 corporation makes the election allowed under this section, the foreign
					 corporation's distributive share of such partnership's items of income, gain,
					 loss and deduction shall be presumed to be business income and its
					 proportionate part of such partnership's assets and liabilities shall be deemed
					 to be business capital and be apportioned entirely to New York, unless the
					 foreign corporation proves otherwise.
(3) If the separate accounting election has
					 been made and the foreign corporation has an interest in more than one election
					 partnership, a separate business income base, capital base, and New York
					 receipts amount (used for purposes of computing the tax measured by the fixed
					 dollar minimum) must be computed for each limited partnership interest. Each
					 amount is then aggregated, with negative amounts limited to zero, to determine
					 the foreign corporation's business income base tax, capital base tax, and fixed
					 dollar minimum tax. Where such negative amounts are limited to zero in
					 determining the business income base tax of the foreign corporation, the
					 corporation may generate an NOL for the taxable year equal to the negative
					 business income base computed for such partnership interest. Such NOL may only
					 be applied against the apportioned business income of the partnership
					 generating such loss in accordance with Subpart 3-9.