Instructions For Form Nyc-204 -Partnership Return

Instructions for Form NYC-204 - 2010

Page 9

ships that receive at least eighty percent of

LINE 20 - DEPRECIATION

rities loans, notional principal contracts, the

their gross receipts from providing mobile

ADJUSTMENT

holding, sale, disposition, assumption, offset or

telecommunications services should add back

If a taxpayer took the additional depreciation de-

termination of a position in property as defined

here any distributive share of losses or deduc-

duction on its federal return with respect to “qual-

in Admin. Code §11-502(2) (1) (A), or other sub-

tions from any such partnership, including

ified property” OTHER THAN “qualified

stantially similar income from ordinary and rou-

their share of separately reported items in-

Resurgence Zone property”, “qualified New York

tine trading or investment activity as determined

cluded in calculating the amount on line 1 of

Liberty Zone property” and “qualified New York

by the Commissioner, realized in connection with

this schedule. There is no corresponding sub-

Liberty Zone leasehold improvements or SUVs

certain investment activities to the extent such

traction on Schedule A for these amounts.

for which an addback was required under the in-

activities are considered exempt from the Unin-

structions to Line 14(d) of this schedule, use

corporated Business Tax. (Refer to: “Who is

Describe in a separate schedule the nature and

NYC-399Z to calculate the amount of the deduc-

Subject to the Tax”, paragraph 5.)

amount of any additions, such as:

tion that may be deducted for City purposes. The

In the case of a taxpayer that qualifies for the

amount appearing in column B of line 8 on Form

interest income on state and local bonds

partial investment exemption (see: “Who is

NYC-399Z should be included on this line. See

held in connection with the business

Subject to the Tax”, paragraph 5), subtract in-

“Highlights of Recent Tax Law Changes”, and Fi-

(other than on bonds of New York State

come or gain includible in gross income for

nance Memorandum 09-5, “Application of IRC

and its political subdivisions)

federal income tax purposes realized from the

§280F Limits to Sport Utility Vehicles” for

sale or other disposition of an interest in an-

interest or dividend income on bonds or

more information.

other unincorporated entity to the extent attrib-

securities, held in connection with the

In place of the disallowed ACRS deduction for

utable to activities of that entity covered by the

business, of any United States authority,

certain property, line 14d, a depreciation de-

taxpayer’s partial exemption.

commission or instrumentality that the

duction computed by any method permitted

laws of the United States exempt from

under IRC Section 167 as in effect on Decem-

LINE 24 - OTHER SUBTRACTIONS

federal income tax but not from state or

ber 31, 1980, will be allowed. Enter on line 20

If you have received a distributive share of

local income taxes

the ACRS adjustment from Form NYC-399,

business or investment income or gains from

royalty and interest payments made to re-

Schedule C, line 8B. (Attach Form NYC-399.)

any partnership, other than a utility partnership

lated members as required by Ad. Code

(See instructions for line 14d and Finance

as described below, subtract here any distribu-

section 11-506(f).

Memorandum 99-4 “Depreciation for Property

tive share amounts of such income or gains in-

Placed in Service Outside New York After

cluded in calculating the amount on line 12 of

any other additions required by Sections

1984 and Before 1994”.)

this schedule and not previously subtracted on

11-506 and 11-507 of the NYC Adminis-

line 11. NOTE: A corresponding addback may

trative Code. (Attach any appropriate

LINE 21 - EXEMPT INCOME

have to be made on Schedule A, line 3b or 7b.

schedules.)

Attach a schedule showing nature and amount

See instructions for those lines.

of exempt income, such as:

- SUBTRACTIONS -

Utility Partnerships.

For tax years beginning

interest income on United States obliga-

on or after August 1, 2002, partnerships that are

LINE 17 - INCOME AND UNINCORPO-

tions included in computing part 1, line

partners in partnerships that are subject to tax

RATED BUSINESS TAX REFUNDS

12;

under Ad. Code Title 11, Ch. 11 as “utilities” de-

Enter any refund or credit for the overpayment

interest or dividend income on bonds or

fined in Ad. Code section 11-1101(6) should

of any income tax to the extent included in

securities of any United States authority,

subtract here any distributive share of income

computing part 1, line 10.

commission or instrumentality included

or gains from any such partnership, including

in computing part 1, line 12 but exempt

their share of separately reported items included

LINE 18 - SALES AND USE TAX

from state or local income taxes under

in calculating the amount on line 1 of this

REFUNDS OR CREDITS

United States law; or

schedule. There is no corresponding addback

This item relates to the unincorporated busi-

on Schedule A for these amounts.

ness tax credit for sales and compensating use

interest or dividend income on bonds or se-

taxes paid on certain machinery, equipment

curities to the extent exempt from income

Describe in a separate schedule the nature and

and certain services. If the taxpayer received

tax under New York laws authorizing the is-

amount of any subtractions, such as:

a refund or credit in 2010 of any sales or use

suance of these bonds or securities, but in-

tax for which it claimed an unincorporated

the portion of gain included in computing

cluded in computing part 1, line 12.

business tax credit in a prior tax period, the

part 1, line 12, from the sale or other dis-

amount of the refund or credit must be added

position of property acquired before Jan-

LINE 22 - DIVIDENDS

to the Unincorporated Business Tax on line 18

uary 1, 1966, except:

Enter 50% of dividends other than dividends

of Schedule A, and entered at Schedule B, part

from stocks not meeting the holding period re-

stock in trade of the taxpayer or

2, line 18 as a subtraction modification. There

quirement set forth in IRC Section 246(c).

other property of a kind that would

is no addback for current refunds of sales tax

be properly included in his inventory

paid on purchases or use of electricity or elec-

LINE 23 - EXEMPT ACTIVITIES

if on hand at the close of the taxable

tric service used in the production of certain

Subtract income or gain includible in gross in-

year, or property held by the tax-

tangible property for which the taxpayer took a

come for federal income tax purposes from the

payer primarily for sale to customers

credit in a prior period under Adm. Code §11-

holding, leasing or managing of real property

in the ordinary course of his trade or

503(g).

(including any business conducted at the prop-

business; and

erty as an incidental service to tenants) if such

LINE 19 - FEDERAL EMPLOYMENT

accounts or notes receivable ac-

holding, leasing or managing of property is not

CREDIT

quired in the ordinary course of the

subject to Unincorporated Business Tax under

Enter the portion of wages and salaries paid or

trade or business for services ren-

NYC Administrative Code Section 11-502(d)

incurred for the taxable year for which a de-

dered or from the sale of property de-

(Refer to “Who is Subject to the Tax”, para-

duction is not allowed pursuant to the provi-

scribed in a) to the extent of the

graph 6.)

sions of Section 280C of the Internal Revenue

difference between:

Subtract income or gain includible in gross in-

Code. (Attach federal Form 5884 or 8884 for

the amount of gain reported for

come for federal income tax purposes, including

Liberty Zone business employees.)

each property; and

dividends, interest, income attributable to secu-

Instructions For Form Nyc-204 -Partnership Return - 2010 Page 10

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