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 3-7.4 - Capital losses sustained in taxable years beginning on or after January 1, 2015

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In
					 computing the business income base, taxpayers generally start with Federal
					 taxable income that includes capital gains in excess of capital losses without
					 differentiation between New York investment capital gains and losses and New
					 York business capital gains and losses. For New York State purposes, taxpayers
					 must ensure that investment capital losses do not offset business capital gains
					 and that business capital losses do not offset investment capital gains when
					 calculating the business income base.
(b) A corporation or combined group, in the
					 case of a combined report, subject to tax under article 9-A must properly
					 classify and separate any amount of Federal capital losses and Federal capital
					 gains, as such terms are defined in IRC section 1222, into New York business
					 capital gains or losses and New York investment capital gains or losses. To
					 calculate the business income base, Federal taxable income must be increased by
					 the amount of New York net investment capital loss that offsets New York net
					 business capital gains. Similarly, to calculate the business income base,
					 Federal taxable income must be increased by the amount of New York net business
					 capital loss that offsets New York net investment capital gains.
(c) For any amount of Federal capital loss
					 sustained in an article 9-A New York non-filing year that is used on a Federal
					 return in an article 9-A New York filing year, Federal taxable income in that
					 New York filing year must be increased by the amount of Federal capital loss
					 that was used from that article 9-A New York non-filing year.
(d) For any amount of Federal capital loss
					 sustained in a New York S year that is used on a Federal return in a New York C
					 year, Federal taxable income in that New York C year must be increased by the
					 amount of the Federal capital loss that was used from the New York S
					 year.
(e) For any amount of Federal
					 capital loss sustained in a non-captive REIT filing year that is used on a
					 Federal return in a captive REIT filing year, Federal taxable income in that
					 captive REIT filing year must be increased by the amount of the Federal capital
					 loss that was used from the non-captive REIT filing year.
(f) For any amount of Federal capital loss
					 sustained in a non-captive RIC filing year that is used on a Federal return in
					 a captive RIC filing year, Federal taxable income in that captive RIC filing
					 year must be increased by the amount of the Federal capital loss that was used
					 from the non-captive RIC filing year.
(g) For any amount of Federal capital loss
					 sustained in a non-captive REIT filing year that is used on a Federal return in
					 a year that the corporation, trust, or association fails to meet the definition
					 and requirements of a REIT, Federal taxable income in that filing year must be
					 increased by the amount of the Federal capital loss that was used from the
					 non-captive REIT filing year.
(h)
					 For any amount of Federal capital loss sustained in a non-combinable captive
					 insurance company filing year that is used on a Federal return in a combinable
					 captive insurance company filing year, Federal taxable income in that
					 non-combinable captive insurance company filing year must be increased by the
					 amount of the Federal capital loss that was used from the combinable captive
					 filing year.