Instructions For Form Nyc-204 -Partnership Return

Instructions for Form NYC-204 - 2010

Page 10

ii) the amount of gain that would be

LINE 28 - CHARITABLE

spective Unincorporated Business, General

reported for each property if the

CONTRIBUTIONS

Corporation or Banking Corporation Tax re-

adjusted basis of the property on

Deductions are allowed for charitable contri-

turns or a credit for UBT paid on their own

the date of sale or other disposi-

butions made by the partnership, as a tax entity

City resident PIT return.

tion had been either:

separate and distinct from its partners, to the

Enter for each partner in column 3 the sum of that

extent contributions would be deductible by a

A) its fair market value on Jan-

partner’s distributive share of income, gain, loss

corporation for federal income tax purposes,

uary 1, 1966, or on the date

and deductions of the partnership, and guaranteed

but not in excess of 5% of line 27. In general,

of its sale or disposition

payments from the partnership, but only if the

contributions deductible by a corporation are

prior to January 1, 1966,

sum is greater than or equal to zero (i.e., the

the same as those for individuals, except that:

plus or minus all federal ad-

partner’s income, gain, and guaranteed payments

justments to basis for the

contributions to fraternal societies, orders

exceed the partner’s losses and deductions). For

period after December 31,

and associations operating under the

this purpose, a partner’s distributive share is that

1965, or

lodge system are not deductible, and

partner’s distributive share of each item of income,

the amount realized from its

gain, loss, and deduction, other than guaranteed

contributions to a trust, chest, fund or foun-

sale or other disposition,

payments made by the partnership, reflected in

dation are deductible only if they are to be

Schedule B, line 29, plus the amount of any guar-

used within the United States or its posses-

whichever is lower.

anteed payments to that partner from the partner-

sions.

If a gain reported is from a sale

ship. If the sum is less than zero (i.e., the

of property prior to January 1,

LINE 30 - INVESTMENT INCOME

partner’s losses and deductions exceed the part-

1966, reported on the installment

Investment income includes: 50% of dividends

ner’s income, gain, and guaranteed payments),

method, the fair market value of

from stocks held for investment; interest from

enter “0”.

the property on the date of the

investment capital; net capital gain or loss from

sale must be substituted for its

Enter in column 4 each partner’s percentage

sales or exchanges of securities held for invest-

fair market value on January 1,

share of the total of the amounts entered in col-

ment; and income from cash if an election is

1966. The total adjustment may

umn 3. Divide the amount for the partner in

made to treat cash as investment capital on line

not exceed the taxpayer’s net

column 3 by the column 3 total. The total of

3 of Schedule D. Do not include any capital

gain from the sale or other dis-

the percentages in column 4 must add up to

loss that could not be used in computing fed-

position of all the property.

100%.

eral taxable income.

interest on money borrowed to purchase or

In computing investment income, subtract the

SCHEDULE D

carry bonds or securities, the interest on

amount of deductions allowable in computing en-

Investment Allocation

which is subject to the Unincorporated

tire net income which are directly or indirectly

Complete Schedule D if you directly own in-

Business Tax but exempt from federal in-

attributable to investment capital or investment

vestment capital.

come tax; ordinary and necessary expenses

income.

paid or incurred during the taxable year in

Allocation for Partners in Other Partnerships.

connection with income or property held

LINE 30a - DIVIDENDS FROM

If an unincorporated entity (the "partner") is a

for the production of this income; and

STOCKS HELD FOR INVESTMENT

partner in another unincorporated entity (the

amortization of bond premium for the tax-

Enter dividends not excluded on line 22. This

"partnership"), carrying on an unincorporated

able year on any bond, the interest on which

includes 50% of dividends from corporations

business wholly or partly in New York City, the

is subject to the Unincorporated Business

for which an exclusion was allowed on line 22

partner should not include its percentage inter-

Tax but exempt from federal income tax, to

of this schedule and 100% of dividends from

est in the items of investment capital of the

the extent these items were not deducted in

stock not meeting the holding period require-

partnerships from which it receives a distribu-

computing part 1, line 12.

ment set forth in Section 246(c) of the IRC.

tive share in Schedule D. The partner must al-

locate its distributive share of the partnership's

subtract income such as royalties from related

LINE 30d - INCOME FROM CASH

investment income as provided below. See

members for the use of intangibles as described

Enter income from cash on Schedule B, line 30d

§28-07(j)(3)(i) of Title 19 of the Rules of the

in section 11-506(f) of the Administrative

only if you have elected to treat cash as invest-

City of New York for more information.

Code.

ment capital and have entered the amount thereof

on Schedule D, line 3.

Unless a partner is permitted or required by the

any other subtractions required by Sec-

tions 11-506 and 11-507 (other than char-

Commissioner to use an alternative method, the

LINE 30f - DEDUCTIONS ATTRIBUTA-

itable

contributions)

the

NYC

partner must allocate to the City its investment

BLE TO INVESTMENT CAPITAL

income from directly owned investment capital

Administrative Code. (Attach any appro-

For more information, see Statement of Audit

priate schedules.)

based solely by reference to its directly owned

Procedure GCT-2008-04, Noninterest Expense

investment capital without regard to its per-

Do not include on line 24 any net operating

Attribution, April 9, 2008 and Statement of

centage interest in the investment capital of any

loss carryover. Any unincorporated business

Audit Procedure PP-2008-12, GCT & UBT

partnership.

net operating loss deduction allowable in 2010

Treatment of Repurchase Agreements and Secu-

by reason of a carryover of a net operating loss

Unless a partner is permitted or required by the

rities Lending and Borrowing Transactions for

sustained by the partnership in prior years

Commissioner to use an alternative method,

Financial Services Firms Regularly Engaged in

should be reported in Schedule F and on

the partner must separately allocate to the City

Such Activities, March 31, 2008, available on

Schedule A.

the same percentage of its distributive share of

the Department’s website at nyc.gov/finance.

investment income from a particular partner-

SAFE HARBOR LEASES

SCHEDULE C

ship as that partnership allocated to the City for

This applies to agreements entered into prior to

purposes of determining its own unincorpo-

Partnership Information

January 1, 1984. The NYC Administrative Code

rated business taxable income for the partner-

Partnerships must complete this schedule in

was amended to nullify the effects of federal

ship's taxable year ending with or within the

order to claim the allowance for partner’s serv-

“Safe Harbor Leases” upon New York City unin-

partner's taxable year. The partner must report

ices (Schedule A, line 13). In addition, this

corporated business taxable income. (Refer to Sec-

those amounts on lines 15 and 24 of Schedule

schedule must be completed for partners to

tions 11-506 and 11-507 of the NYC Administrative

B and line 7b of Schedule A. See instructions

claim the UBT Paid Credit on their own re-

Code for details.)

for those lines.

Instructions For Form Nyc-204 -Partnership Return - 2010 Page 11

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