Redacted Letter Rulings - General Corporation Tax (GCT)

Department of Finance


Business and Excise TaxesBusiness ResourcesBenefitsDoing Business with NYC


Redacted letter rulings - general corporation tax

Written by the Department of Finance’s Legal Affairs Division, letter rulings are written statements that set forth the applicability of the statutes and rules to a specific set of facts and are provided in redacted form to protect taxpayer-specific information.

S corporation which underwent a federal tax exempt reorganization under IRC section 368(1)(a)(F) (an “F Reorganization”) should file its General Corporation Tax return for the entire tax year covering both the period before and after the F Reorganization. No short period returns should be filed. In the F Reorganization , the shareholders of the old subchapter S corporation contributed their shares in the old corporation to a new subchapter S corporation with the old subchapter S corporation becoming a qualified subchapter S subsidiary (a “Q-Sub”) of the new subchapter s corporation; the Q-Sub then merged into an LLC wholly owned by the new subchapter S corporation and disregarded for tax purposes, with that LLC being the surviving entity. Hence, before the F reorganization, the old subchapter S corporation owned its assets directly; after the F reorganization, the new subchapter S corporation wholly owned an LLC which in turn owned the old subchapter S corporation’s assets. #15-4966 6/3/15
Download Ruling
When a related corporation does not have the same year as the parent (or the corporation designated as the “parent”) on the combined report, the related corporation’s activities for its taxable year that ends during the parent’s taxable year are used for purposes of reporting and filing as part of a combined report. #11-4917 7/28/11
Download Ruling
A note, which otherwise meets the definition of investment capital, is not excluded because the interest on the note is defined as a percentage of the revenues of the issuer's parent. #08-4884 4/2/09
Download Ruling
Taxpayer, a manufacturing corporation located in the city, was required to use the three factor business allocation formula for apportioning its business income and not a single receipts factor. #07-4870. 3/6/2008
Download Ruling
Settlement fund, established to receive and invest proceeds from lawsuit pending disbursement, is not subject to GCT or UBT. #06-4854. 8/1/2006
Download Ruling
This hypothetical ruling addresses the attribution of income from services performed in connection with the drawing and testing of blood that occurs both within and outside the City. #06-4846. 6/28/2006
Download Ruling
A taxpayer whose GCT liability is limited to the $300 minimum tax qualifies for the refundable REAP credit that is available in the taxable year of relocation and the next four taxable years. #05-4843. 2/14/2006
Download Ruling
A nonstock corporation formed under the Not-For-Profit Law of New York State in 1992 that did not begin operations until 2005 but whose exempt status under IRC §501(c)(4) was confirmed by the Internal Revenue Service in 2005 was held exempt from the GCT. #05-4838. 5/3/2006
Download Ruling
REAP benefits are available to successor surviving corporation in a merger under the facts presented. #05-4834. 7/13/2005
Download Ruling
An incorporated condominium homeowners association is not exempt from the General Corporation Tax (GCT). # 03-4800. 5/21/2003
Download Ruling
Reseller of long distance telephone service subject to the General Corporation Tax (GCT) as a vendor of utility services. #02-4798. 4/18/2003
Download Ruling
Settlement fund, established to receive and invest proceeds from lawsuit pending disbursement, is not subject to GCT or UBT. #01-4777. 11/26/2001
Download Ruling
Insurance Company that maintains a liaison office in the City is not subject to the GCT but must file an Activities Report. #00-4772. 12/5/2000
Download Ruling
Filing of a declaration as a financial holding company under the Gramm - Leach - Bliley Act will not in itself result in the treatment of a foreign bank as a bank holding company. #00-4758. 4/6/2000
Download Ruling
An election by a subsidiary of a bank to be taxed under the General Corporation Tax is not affected by the transfer of its stock to a commercial bank or the transfer of the commercial bank to a new bank holding company. In addition, that election will not be affected by the merger into the subsidiary of one or more corporations with which the commercial bank files consolidated federal returns, by the transfer of the stock of the subsidiary to the bank holding company, or by the transfer to the subsidiary of the activities of one or more subsidiaries of the commercial bank or the bank holding company. No ruling is issued on the validity of the original election. #98-4735. 6/30/1999
Download Ruling
An election by a subsidiary of a bank to be taxed under the General Corporation Tax is not affected by transfer of its stock to a commercial bank or the transfer of the commercial bank to a new bank holding company. In addition, that election will not be affected by the merger into the subsidiary of one or more corporations with which the commercial bank files consolidated federal returns, by the transfer of the stock of the subsidiary to the bank holding company, or by the transfer to the subsidiary of the activities of one or more subsidiaries of the commercial bank holding company. No ruling is issued on the validity of the original election. #98-4734. 6/30/1999
Download Ruling
Homeowners' association is not exempt from the GCT because it is operated for exempt purpose but for the benefit of private individuals. #97-4710. 12/15/1998
Download Ruling
A federally exempt trade organization is denied an exemption from GCT as not operated exclusively for nonprofit purposes. The organization's main activity is to maintain a product liability insurance program available only to members and members must agree not to file cross claims against each other as a condition of membership. #96-4653. 3/11/1996
Download Ruling

Redacted Letter Rulings