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 3-2 - GENERAL RULES › Section 3-2.5 - Use of dollar amounts in computing tax

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 171(19))
(a) Any amount required to be included in a
					 report may be entered at the nearest whole dollar amount. This does not apply
					 to the items that must be taken into account in making the computations
					 necessary to determine such amount. For example, each sale must be taken into
					 account at its exact amount, including cents, in computing the amount to be
					 included in the franchise tax report. However, the total amount to be included
					 in the franchise tax report may be entered at the nearest whole dollar amount.
					 A taxpayer may elect not to use whole dollar amounts by reporting all amounts
					 in full, including cents.
(b) For
					 the purpose of the computation to the nearest dollar, a fractional part of a
					 dollar shall be disregarded unless it amounts to one-half dollar or more, in
					 which case the amount (determined without regard to the fractional part of a
					 dollar) shall be increased by one dollar.
(1)
					 Example.
Exact amount
To be reported as
$500,000.49
$500,000.00
$500,000.50
$500,001.00
$500,000.51
$500,001.00
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 3-2 - GENERAL RULES › Section 3-2.6 - Federal changes

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, sections 211(3), 1083(c)(7), and
						1087(c)(1)).
If the taxpayer files a report or an amended report as
						required by section 211(3) with respect to an increase or a decrease in Federal
						taxable income or Federal tax, or with respect to a change, correction or
						renegotiation of tax that is treated in the same manner as if it were a
						deficiency or overpayment for Federal income tax purposes, or with respect to a
						computation or re-computation of tax that is treated in the same manner as if
						it were a deficiency or overpayment for Federal income tax purposes, the amount
						of tax attributable to the Federal change, correction or renegotiation, or the
						computation or re-computation means the amount determined by recomputing each
						of the alternative tax bases for measuring the tax imposed under article 9-A,
						taking into account the item or items resulting in the Federal change,
						correction or renegotiation, or the computation or re-computation for the
						taxable year. Such amount shall be computed without change to the business
						apportionment factor (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 3 - COMPUTATION OF TAX › Subpart 3-2 - GENERAL RULES › Section 3-2.7

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 3 - COMPUTATION OF TAX › Subpart 3-2 - GENERAL RULES › Section 3-2.8

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 3-2 - GENERAL RULES › Section 3-2.9

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 3-2 - GENERAL RULES › Section 3-2.10

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 3-2 - GENERAL RULES › Section 3-2.11

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 3-3 - ENTIRE NET INCOME › Section 3-3.1 - Definition of entire net income (ENI)

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(9))
(a)
(1)
					 Entire net income means total net income from all sources. The starting point
					 for the computation of ENI is Federal taxable income, which generally means
					 taxable income as defined in IRC section 63 ("taxable income"). After
					 determining the amount of Federal taxable income, it must be adjusted by the
					 addition and subtraction modifications as required by the provisions of section
					 208(9) and, to the extent necessary, further described in this
					 Subpart.
(2) "Federal taxable
					 income" is presumed to be the same as
(i) the
					 taxable income the taxpayer is required to report to the Internal Revenue
					 Service; or
(ii) the taxable income
					 that the taxpayer would have been required to report to the Internal Revenue
					 Service, if it had not made an election under Subchapter S of Chapter One of
					 the IRC; or
(iii) the taxable
					 income that the taxpayer, in the case of a corporation that is exempt from
					 Federal income tax (other than the tax on unrelated business taxable income
					 imposed under IRC section 511) but is subject to tax under article 9-A, would
					 have been required to report to the Internal Revenue Service but for such
					 exemption; or
(iv) the income,
					 gain, or loss that is effectively connected with the conduct of a trade or
					 business within the United States, as determined under IRC section 882, 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.
(v) For purposes of computing ENI, federal
					 taxable income must be determined without taking into account the minimum
					 amount of taxable income specified in IRC section 860E.
(3) The amount of any specific exemption or
					 credit allowed in any law of the United States imposing any tax on or measured
					 by the income of corporations is not allowed in computing ENI. The income
					 actually reported or the income actually determined for Federal income tax
					 purposes is not necessarily the same as the taxable income that was required to
					 be reported for Federal income tax purposes under the provisions of the IRC.
					 Generally, the determination of the Internal Revenue Service as to Federal
					 taxable income is followed, but it is not binding on the commissioner or the
					 taxpayer.
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 3-3 - ENTIRE NET INCOME › Section 3-3.2 - Taxable year in which income or deduction is included in ENI

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(9)(d))
(a) In general, the method of accounting used
					 in computing taxable income for Federal income tax purposes is used in
					 computing ENI. However, whenever the commissioner deems it necessary in order
					 to properly reflect the ENI of the taxpayer, the commissioner may determine the
					 taxable year or period in which any item of income or deduction shall be
					 included, without regard to the method of accounting used by the taxpayer for
					 Federal income tax purposes.
(b)
					 Examples.
Example 1: A taxpayer has a contract for the construction
						of a building and the subsequent installation of equipment in that building.
						The contract covers a period in excess of one taxable year. The taxpayer keeps
						its books so as to reflect the total income derived from the contract in the
						taxable year in which the contract is finally completed, and reports its
						Federal taxable income accordingly. The commissioner may require the taxpayer
						to report the income from the contract on the basis of the percentage of
						completion in each taxable year, or some other appropriate basis.
Example 2: A foreign corporation sells its New York
						State real estate on an installment basis, and terminates its taxable status in
						New York State in the year of the sale. The full profit on the sale must be
						included in entire net income in the year of the sale.
Example 3: A foreign corporation sells its New York
						State real estate on an installment basis and terminates its taxable status in
						New York State in a subsequent taxable year prior to the receipt of all of its
						installment payments. The profit included in the remaining installment payments
						for the sale must be included in ENI in the year it terminates its taxable
						status in 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 3 - COMPUTATION OF TAX › Subpart 3-3 - ENTIRE NET INCOME › Section 3-3.3 - Subtraction modifications for community banks and thrifts

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(9)(r), (s) and (t))
(a) Captive REIT modification.
(1) A corporation that is a small thrift
					 institution or qualified community bank, both as defined in section 208(9)(s),
					 that maintained a captive REIT on April 1, 2014, must utilize the REIT
					 subtraction provided for in this subdivision in any taxable year it maintained
					 such captive REIT on the last day of the tax year. Such corporation maintained
					 a captive REIT if it owned, directly or indirectly, more than 50% of the voting
					 stock of such captive REIT on the required date. The REIT subtraction is equal
					 to 160% of the dividends paid deductions allowed to that captive REIT for the
					 taxable year for Federal income tax purposes.
(2) When computing the combined business
					 income base, there is no elimination of intercompany dividends received from
					 the combined captive REIT by any member of the combined group in any taxable
					 year in which the subtraction modification described in this subdivision is
					 utilized.
(3) A combined group that
					 includes a small thrift institution or qualified community bank is not allowed
					 to utilize the subtraction modification for qualified residential loan
					 portfolios described in subdivision (b) of this section or the subtraction
					 modification for qualified community banks and small thrifts described in
					 subdivision (c) of this section in any taxable year in which such thrift
					 institution or community bank owns the captive REIT referred to in paragraph
					 (1) on the last day of 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 3 - COMPUTATION OF TAX › Subpart 3-3 - ENTIRE NET INCOME › Section 3-3.4 - Royalty modification

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(9)(o))
In computing ENI, section 208(9)(o) provides that a
						corporation that is not included in a combined report with a related member (as
						that term is defined in subparagraph (1) of that paragraph) must add back
						royalty payments directly or indirectly paid, accrued or incurred in connection
						with one or more direct or indirect transactions with one or more related
						members during the taxable year to the extent deductible in calculating Federal
						taxable income. The addback will not apply if the corporation establishes by
						clear and convincing evidence of the form and type specified by the
						commissioner that one of three exceptions specified in section
						208(9)(o)(2)(B)(i)-(iii) applies. For purposes of verifying that the
						corporation meets an exception to the addback, the corporation is required to
						retain and produce upon request an unredacted copy of the tax return filed with
						the applicable taxing authority of the related member for each transaction in
						question. The corporation is also required to supply an English translation of
						each non-English tax return required to be produced, including a translation of
						foreign currency to U.S. dollars. In addition, the addback will not apply if
						the corporation and the commissioner agree in writing to the application or use
						of alternative adjustments or computations.
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 3-3 - ENTIRE NET INCOME › Section 3-3.5

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 3-3 - ENTIRE NET INCOME › Section 3-3.6

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 3-3 - ENTIRE NET INCOME › Section 3-3.7

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 3 - COMPUTATION OF TAX › Subpart 3-3 - ENTIRE NET INCOME › Section 3-3.8

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 3-3 - ENTIRE NET INCOME › Section 3-3.9

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 3-4 - INVESTMENT CAPITAL AND INVESTMENT INCOME › Section 3-4.1 - Definition of investment capital

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(4) and (5))
(a) The term "investment capital" means
					 investments described in paragraphs (1), (2) or (3) of this subdivision, as
					 further described in this Subpart.
(1) Stocks
					 that satisfy the criteria in subparagraphs (i) through (v) of this paragraph
					 shall be referred to as "actual investment capital".
(i) The stocks satisfy the definition of a
					 capital asset under IRC section 1221 at all times during the taxable year in
					 which the taxpayer owned the stocks.
(ii) The stocks are held for investment by
					 the corporation for more than one year. For purposes of determining the length
					 of the holding period, the principles of IRC section 1223 shall be followed
					 under the circumstances described in that section.
(iii) The dispositions of the stocks are, or
					 would be, treated by the corporation as generating long-term capital gains or
					 losses under the IRC.
(iv) If the
					 stocks are acquired on or after January 1, 2015, the stocks have never been
					 held for sale to customers in the regular course of business at any time after
					 the close of the day on which they were acquired.
(v) The stocks are clearly identified in the
					 corporation's records as held for investment in the manner described in section
					 3-4.3  of this Subpart.
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 3-4 - INVESTMENT CAPITAL AND INVESTMENT INCOME › Section 3-4.2 - Constitutionally protected investment capital

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(5)(e))
In the case of a corporation incorporated and
						commercially domiciled outside New York State, the United States Constitution
						prohibits the state from apportioning income or gain from intangible assets
						when such income or gain lacks a sufficient connection to activities or
						presence in the state by the corporation. For example, the income or gain from
						an intangible asset (i.e., a debt obligation or other security) is
						apportionable where the underlying activities of the recipient of the
						intangible income and the source of the income constitute a unitary business;
						or where the intangible asset or the income from the intangible asset serves an
						operational function in the taxpayer's business. Whether an intangible asset
						serves an operational function depends on the nature of the asset's use and its
						relation to the corporation and the corporation's activities in the state. For
						example, an intangible asset would serve an operational function if the asset
						is held to meet currently identified needs of the business, including, but not
						limited to, the use of the asset's income stream to pay the business's
						operating expenses or finance the business's functions.
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 3-4 - INVESTMENT CAPITAL AND INVESTMENT INCOME › Section 3-4.3 - Investment capital identification procedures

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(5)(a)(v))
(a) Identification requirement. To qualify as
					 investment capital, an investment in stock must be clearly identified in the
					 corporation's records as stock held for investment in the same manner as
					 required under IRC section 1236(a)(1) for the stock of a dealer in securities
					 (whether or not the corporation is a dealer in securities). The identification
					 requirements described in this section do not apply to constitutionally
					 protected investment capital.
(b)
					 Dealers in Securities. In the case of a corporation that is a dealer in
					 securities subject to IRC section 1236, the identification requirement in
					 subparagraph (v) of paragraph (1) of subdivision (a) of section
					 3-4.1  of this Subpart will be
					 satisfied only if the stocks are clearly identified in the corporation's
					 records as stock held for investment under IRC section 1236(a)(1). However, any
					 stock purchased by a corporation that is a dealer in securities pursuant to an
					 option will meet the identification requirement only if the option also is
					 clearly identified in the corporation's records as held for investment under
					 IRC section 1236(a)(1). Identification under any other IRC section, including
					 IRC section 475, or under any section of New York law or regulation, will not
					 satisfy the identification requirement.
(c) All corporations other than dealers in
					 securities. In the case of corporations that are not dealers in securities
					 subject to IRC section 1236, the identification requirement in subparagraph (v)
					 of paragraph (1) of subdivision (a) of section
					 3-4.1  of this Subpart will be
					 satisfied only if the stocks are recorded in an account that:
(1) is maintained specifically for purposes
					 of identifying such stocks as held for investment for investment capital
					 purposes;
(2) is separate from any
					 account maintained for stock held for sale to customers; and
(3) is maintained in a separate account in
					 the corporation's books of account for recordkeeping purposes; or in a separate
					 depository account maintained by a clearing company as nominee for the
					 corporation; and
(4) discloses:
(i) the name of the stock;
(ii) the identifying number of the stock
					 according to either the Committee on Uniform Securities Identification
					 Procedures (CUSIP) or the CUSIP International Numbering System (CINS), as
					 appropriate; and
(iii) if the stock
					 is sold, the date of the sale, the number of shares sold in the sale, and the
					 price at which the stock or the option, respectively, is sold; and
(5) is established in such a
					 manner as to readily identify the length of time that the stock is
					 owned.
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 3-4 - INVESTMENT CAPITAL AND INVESTMENT INCOME › Section 3-4.4 - Presumed investment capital that fails the holding period requirement

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(5)(d))
(a) If a corporation disposes of presumed
					 investment capital after the filing of the original report for that tax year
					 the corporation must determine how long such stock had been held for
					 investment. If any such stock in fact had been held as investment for one year
					 or less (as counted across tax years), the corporation must either:
(1) file an amended report for the taxable
					 year in which such stock was presumed investment capital to properly classify
					 the capital and income as business capital and income, respectively;
					 or
(2)
(i) increase its business capital in the
					 immediately succeeding taxable year by the amount previously included in
					 investment capital for that stock, net of any liabilities attributable to that
					 stock (but not less than zero); and
(ii) increase its business income in the
					 immediately succeeding taxable year by the amount of income and net gains (but
					 not less than zero) from that stock previously included in gross investment
					 income after the limitation in section
					 3-4.5(c)  of this
					 Subpart less either
(a) the safe harbor
					 reduction amount determined in section
					 3-4.8  of this Subpart on the
					 return on which this presumed investment capital was identified or
(b) the amount of interest deductions
					 directly or indirectly attributable to the items of investment capital that
					 failed the presumption determined pursuant to the method in section
					 3-4.7  of this Subpart on the
					 return on which this presumed investment capital was identified. No adjustment
					 will be allowed in the immediately succeeding taxable year for excess interest
					 deductions directly or indirectly attributable to the items of investment
					 capital that failed the presumption that were added back to ENI in the year the
					 presumed investment capital was included in investment
					 capital.
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 3-4 - INVESTMENT CAPITAL AND INVESTMENT INCOME › Section 3-4.5 - Definition of investment income

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(6))
(a)
(1)
					 Gross investment income is income from investment capital, to the extent
					 included in entire net income (ENI). It includes dividends from investment
					 capital, interest from investment capital, capital gains in excess of capital
					 losses from the sale or exchange of investment capital and other income from
					 investment capital.
(2) Investment
					 income is gross investment income less either:
(i) interest deductions directly or
					 indirectly attributable to investment capital or gross investment income
					 determined in section
					 3-4.7  of this Subpart;
					 or
(ii) the safe harbor reduction
					 amount determined in section
					 3-4.8  of this Subpart.
(3) Investment income cannot
					 exceed ENI minus other exempt income.
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 3-4 - INVESTMENT CAPITAL AND INVESTMENT INCOME › Section 3-4.6 - Definition of other exempt income

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(6-a))
(a) Controlled foreign corporation (CFC)
					 stock and related income.
(1) CFC stock means
					 investments in stock of a corporation that generates, or could generate, exempt
					 CFC income.
(2) Gross exempt CFC
					 income, as described in this subdivision, shall not constitute investment
					 income or exempt unitary corporation dividends. Gross exempt CFC income is:
(i) except to the extent described in
					 subparagraph (ii), income required to be included in the taxpayer's Federal
					 gross income pursuant to IRC section 951(a) received from a corporation that is
					 conducting a unitary business with the taxpayer, but that is not included in a
					 combined report with the taxpayer;
(ii) the income required to be included in
					 the taxpayer's Federal gross income pursuant to IRC section 951(a) by reason of
					 IRC section 965(a), as adjusted by IRC section 965(b), and without regard to
					 IRC section 965(c), received from a corporation that is not included in a
					 combined report with the taxpayer; and
(iii) 95% of the income required to be
					 included in the taxpayer's Federal gross income pursuant to subsection (a) of
					 IRC section 951A, without regard to the deduction under IRC section 250,
					 received from a corporation that is not included in a combined report with the
					 taxpayer.
(3) Exempt CFC
					 income is gross exempt CFC income less either:
(i) interest deductions directly or
					 indirectly attributable to gross exempt CFC income as determined in section
					 3-4.7  of this Subpart;
					 or
(ii) the safe harbor reduction
					 amount determined in section
					 3-4.8  of this Subpart.
(4) Total gross income from CFC
					 stock is the sum of net capital gains in excess of capital losses from the sale
					 of CFC stock plus gross exempt CFC income.
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 3-4 - INVESTMENT CAPITAL AND INVESTMENT INCOME › Section 3-4.7 - Attribution of interest deductions

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(6) and (6-a))
(a) Unless the safe harbor reduction election
					 has been made as required by section
					 3-4.8, gross investment income and
					 gross other exempt income must be reduced by any interest deductions allowed in
					 computing ENI that are directly or indirectly attributable to investment
					 capital, gross investment income, or gross other exempt income as follows:
(1) Determine the total amount of interest
					 deductions subject to direct and indirect attribution. The total amount of
					 interest deductions subject to direct and indirect attribution is:
(i) the amount of interest deductions
					 included in Federal taxable income after the IRC section 163(j) limitation;
					 less
(ii) those Federal interest
					 deductions required to be added back to Federal taxable income in computing
					 ENI; plus
(iii) interest deductions
					 attributable to interest income not includable in Federal taxable income but
					 required to be included in ENI, to the extent such expenses are not deducted
					 for Federal tax purposes; plus
(iv)
					 in the case of a corporation organized outside the United States that is not
					 treated as a domestic corporation for Federal purposes, interest deductions
					 attributable to treaty income not included in Federal taxable income that would
					 be treated as effectively connected if not for the treaty, to the extent such
					 expenses are not deducted for Federal tax purposes; plus
(v) in the case of a corporation organized
					 outside the United States that is not treated as a domestic corporation for
					 Federal purposes, interest deductions attributable to income from any state or
					 local bond that would be treated as effectively connected income if it was not
					 excluded from gross income by IRC section 103(a), to the extent such expenses
					 are not deducted for Federal tax purposes.
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 3-4 - INVESTMENT CAPITAL AND INVESTMENT INCOME › Section 3-4.8 - Safe harbor reduction election

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(6) and (6-a))
(a) In lieu of performing the attribution of
					 interest deductions in section
					 3-4.7  of this Subpart, a
					 corporation may elect to reduce the amount of gross investment income, gross
					 exempt CFC income, and gross exempt other unitary corporation dividends by the
					 safe harbor reduction amount, which is 40% of the respective gross income
					 amount. If the corporation has gross exempt cross-article dividends, it must
					 attribute interest deductions to such income using the methodology described in
					 section 3-4.7  of this Subpart only as it
					 relates to such exempt cross-article stock. In addition, the amounts of
					 interest deductions directly attributable to gross investment income or
					 investment capital, gross exempt CFC income, and gross exempt unitary
					 corporation dividends are not subtracted from gross investment income, gross
					 exempt CFC income, and gross exempt unitary corporation dividends,
					 respectively.
(b) This election
					 applies to gross investment income, gross exempt CFC income, and gross exempt
					 other unitary corporation dividends. The absence of gross investment income,
					 gross exempt CFC income, or gross exempt other unitary corporation dividends
					 does not preclude the election being made.
(c) The election may be made or revoked by
					 the taxpayer, or in the case of a combined group, the designated agent, by
					 filing a tax return within the statute of limitations for each applicable tax
					 year. Such method chosen by the taxpayer is binding on both the taxpayer and
					 the department unless the taxpayer files an amended return within the statute
					 of limitations for the applicable tax year to make a change.
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 3-4 - INVESTMENT CAPITAL AND INVESTMENT INCOME › Section 3-4.9

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 3-5 - BUSINESS CAPITAL AND BUSINESS INCOME › Section 3-5.1 - Definition of business capital and capital base.

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(5) and (7))
(a)
(1)
					 Business capital is all assets, other than investment capital and stocks issued
					 by the taxpayer, less liabilities not deducted from investment capital.
					 Business capital includes only those assets the income, loss, or expense of
					 which are properly reflected (or would have been properly reflected if not
					 fully depreciated or expensed or depreciated or expensed to a nominal amount)
					 in the computation of entire net income for the taxable year.
(2)
(i)
					 Business capital includes, but is not limited to:
(a) cash;
(b) stock in a controlled foreign
					 corporation, except to the extent such stock qualifies as investment capital
					 under Subpart 3-4 of this Part;
(c)
					 cross-article corporation stock;
(d) other unitary corporation
					 stock;
(e) reverse repurchase
					 agreements and securities borrowing agreements, as well as the securities
					 underlying those agreements and repurchase agreements and securities lending
					 agreements;
(f) real
					 property;
(g) tangible personal
					 property; and
(h) investments in a
					 Federal reserve bank or a Federal home loan bank.
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 3-5 - BUSINESS CAPITAL AND BUSINESS INCOME › Section 3-5.2 - Definition of business income and the business income base

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, sections 208(8), 210(1)(a))
(a) Business income is entire net income
					 minus other exempt income and investment income. It also includes:
(1) interest deductions directly or
					 indirectly attributable to gross investment income or investment capital that
					 exceed the amount of gross investment income; and
(2) interest deductions directly or
					 indirectly attributable to gross other exempt income that exceed the amount of
					 gross other exempt income.
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 3-5 - BUSINESS CAPITAL AND BUSINESS INCOME › Section 3-5.3

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 3-6 - EXAMPLES OF INCOME AND CAPITAL › Section 3-6.2

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 3-6 - EXAMPLES OF INCOME AND CAPITAL › Section 3-6.3

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 3-6 - EXAMPLES OF INCOME AND CAPITAL › Section 3-6.4

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 3-6 - EXAMPLES OF INCOME AND CAPITAL › Section 3-6.5

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 3-6 - EXAMPLES OF INCOME AND CAPITAL › Section 3-6.6

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 3-6 - EXAMPLES OF INCOME AND CAPITAL › Section 3-6.7

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 3 - COMPUTATION OF TAX › Subpart 3-7 - CAPITAL LOSSES › Section 3-7.1 - New York investment capital gains or losses in taxable years beginning on or after January 1, 2015

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Definitions.
(1) "New York investment capital
					 gains or losses" means the amount of Federal capital gains generated or losses
					 sustained in taxable years beginning on or after January 1, 2015, that are
					 attributable to investment capital.
(2) "New York net investment capital gain"
					 means the amount of New York investment capital gains in excess of New York
					 investment capital losses for the taxable year.
(3) "New York net investment capital loss"
					 means the amount of New York investment capital losses in excess of New York
					 investment capital gains for 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 3 - COMPUTATION OF TAX › Subpart 3-7 - CAPITAL LOSSES › Section 3-7.2 - New York business capital gains or losses in taxable years beginning on or after January 1, 2015

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Definitions.
(1) "New York business capital
					 gains or losses" means the amount of Federal capital gains generated or losses
					 sustained in taxable years beginning on or after January 1, 2015, that are
					 attributable to business capital.
(2) "New York net business capital gain"
					 means the amount of New York business capital gains in excess of New York
					 business capital losses for the taxable year.
(3) "New York net business capital loss"
					 means the amount of New York business capital losses in excess of New York
					 business capital gains for 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 3 - COMPUTATION OF TAX › Subpart 3-7 - CAPITAL LOSSES › Section 3-7.3 - Capital losses sustained in taxable years beginning before January 1, 2015

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Except as
					 provided in subdivisions (b) and (c) of this section, a corporation subject to
					 tax under article 9-A or article 32, or a member of a combined group subject to
					 tax under article 9-A or article 32, that sustained a Federal net capital loss
					 under IRC section 1212 in a taxable year beginning before January 1, 2015,
					 shall carry back and forward such Federal net capital loss as required by this
					 Subpart and section
					 18-2.5(b)  of
					 Subchapter B of this Chapter, as such provisions existed on December 31,
					 2014.
(b) The carryover of any
					 amount of a Federal net capital loss that was sustained in a taxable year
					 beginning before January 1, 2015, to a taxable year beginning after December
					 31, 2014, shall be governed by this Subpart.
(c) Any Federal net capital loss available
					 for carryforward as of the end of the last taxable year beginning before
					 January 1, 2015, shall be deemed to be a New York net business capital loss
					 (regardless of whether such capital loss was from business capital, investment
					 capital, or subsidiary capital as such terms were previously defined in article
					 9-A regulations or, to the extent relevant, article 32 regulations as such
					 regulations existed on December 31, 2014). Such New York net business capital
					 loss shall be carried forward to the next succeeding taxable year beginning on
					 or after January 1, 2015, and must be applied only against New York business
					 capital gains. Such New York net business capital loss may only be carried
					 forward to the 5 taxable years immediately succeeding the loss year and nothing
					 in this Subpart extends this capital loss carryforward period.
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 3-7 - CAPITAL LOSSES › Section 3-7.6 - Rules for combined reports

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In
					 computing the New York net capital loss of corporations included in a combined
					 report pursuant to section 210-C, the New York net capital loss of the combined
					 group is computed in accordance with this Subpart, substituting "combined
					 group" for "corporation".
(b) A
					 member leaving a combined group must compute its own share of New York net
					 business capital loss carryover and New York net investment capital loss
					 carryover. New York net capital loss carryover is net capital loss that may be
					 carried back or forward as the case may be.
(1) To compute the leaving member's share of
					 the New York net business capital loss carryover, multiply the combined group's
					 New York net business capital loss carryover for the taxable year by a
					 fraction, the numerator of which is the total New York business capital losses
					 for that taxable year of the leaving member and the denominator of which is the
					 total New York business capital losses for that taxable year of all members of
					 the combined group having such New York business capital losses to the extent
					 such capital losses are included in the capital loss carryover amount of the
					 combined group in accordance with this section.
(2) To compute the leaving member's share of
					 New York net investment capital loss carryover, multiply the combined group's
					 New York net investment capital loss carryover for the taxable year by a
					 fraction, the numerator of which is the total New York investment capital
					 losses for that taxable year of the leaving member and the denominator of which
					 is the total New York investment capital losses for that taxable year of all
					 members of the combined group having such New York investment capital losses to
					 the extent such capital losses are included in the capital loss carryover
					 amount of the combined group in accordance with this section.
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 3-7 - CAPITAL LOSSES › Section 3-7.7 - Record keeping

Current through Register Vol. 46, No. 28, July 10, 2024
A taxpayer or a combined group that claims either a
						business or investment New York net capital loss carryback or carryforward must
						submit a copy of its Federal schedule of capital gains and losses used and a
						schedule of New York capital gains and losses used for the loss year and for
						any year(s) to which the losses are to be carried. A claim for refund based on
						a New York capital loss carryback or carryforward must be filed on the forms
						and in the manner prescribed by the commissioner.
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 3-8.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Subpart, the following terms shall
						have the following meaning.
(a) The
					 term "base year" means a corporation's last taxable year beginning on or after
					 January 1, 2014, and before January 1, 2015.
(b) The term "base year BAP" means either of
					 the following, whichever is applicable:
(1)
					 the corporation's, or combined group's in the case of a combined report, in the
					 base year ("base year combined group"), business allocation percentage (BAP)
					 for purposes of calculating entire net income (ENI) for the base year (whether
					 or not liability was in fact based on ENI), as calculated under section
					 210(3)(a) as such section was in effect on December 31, 2014; or
(2) the corporation's or base year combined
					 group's allocation percentage for purposes of calculating ENI for the base year
					 (whether or not liability was in fact based on ENI), as calculated under
					 section 1454 as such section was in effect on December 31, 2014.
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 3-8.2 - Computation of the unabsorbed net operating loss (UNOL)

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The "unabsorbed net operating loss"
					 (UNOL) means the unabsorbed portion of net operating loss (NOL) as calculated
					 under section 208(9)(f) or section 1453(k-1) as such sections were in effect on
					 December 31, 2014, that was not deductible in previous taxable years (including
					 the base year) and was eligible for carryover on the last day of the base year,
					 including any NOL sustained by the corporation during the base year. The
					 computation of such UNOL is subject to the rules in subdivisions (b) through
					 (e) of this section.
(b) To compute
					 the UNOL, the rules in paragraphs (1) and (2) of this subdivision must be
					 followed.
(1) Federal and New York State NOLs
					 available for carryover. A corporation must first compute its Federal and New
					 York State NOLs available for carryover, from taxable years beginning before
					 January 1, 2015, as of the last day of such corporation's base year (Federal
					 and New York State NOLs available for carryover), by applying the following
					 rules:
(i) NOLs are carried back and carried
					 forward to taxable years beginning before January 1, 2015, and included in the
					 determination of deductible NOLs, as well as remaining NOLs available for
					 carryover, subject to NOL deduction limitations, as set forth in either section
					 208(9)(f) and Subpart 3-8 of this Part or section 1453(k-1), whichever is
					 applicable as such provisions were in effect and applicable on December 31,
					 2014. NOLs available for carryover do not include any NOLs that were deductible
					 in a taxable year beginning prior to January 1, 2015, regardless of whether or
					 not the corporation actually deducted the NOL. However, if the amount of NOL
					 actually deducted in any taxable year is greater than the amount deductible,
					 the NOL available for carryover is reduced by the excess amount deducted. When
					 computing the amount of NOLs available for carryover, New York State NOLs must
					 be applied against ENI to reduce ENI to zero or the greatest extent possible,
					 regardless of the tax base on which the franchise tax was actually
					 paid.
(ii) If the carryforward
					 period for an NOL, as determined in subparagraph (i) of this paragraph, ends
					 prior to, or on, the last day of the corporation's base year, no portion of
					 such NOL is included in the NOLs available for carryover.