Instructions For Form Nyc-204 -Partnership Return

Instructions for Form NYC-204 - 2010

Page 13

LINEs 3a and 3b - GROSS SALES OF

from line 3a, Column C, on line 3b. See Title

ice performed in New York City if the pro-

MERCHANDISE OR CHARGES FOR

19 Rules of the City of New York §28-07(d) for

duction credits for these transactions are

SERVICES DURING THE YEAR

rules relating to the definition of manufactur-

awarded to a New York City branch, office,

Except as provided in the following paragraphs,

ing.

or employee of the taxpayer.

the amount to be entered on line 3a in column

Receipts from management, administration or

Registered broker dealers may elect to source the

A is the portion of the total gross sales or

distribution services provided to a regulated

gross income from principal transactions based

charges that represents services performed by

investment company (RIC) must be allocated

on the location of the customer to the principal

or through an agency in New York City. This

based upon the percentage of the RIC's share-

transaction. If the election is made, gross income

includes services performed by employees,

holders domiciled in New York City. (Attach

from principal transactions is deemed to arise

agents, agencies or independent contractors sit-

rider showing computation.) See Admin.

from a service performed in New York City to

uated at, connected with, or sent out from of-

Code §11-508(e-2).

the extent that the gross proceeds from the trans-

fices of the unincorporated business (or its

actions are generated from sales of securities or

agencies) located in New York City.

SOURCING OF RECEIPTS OF REGIS-

commodities to customers within the city based

TERED SECURITIES OR COMMODI-

Notwithstanding the foregoing, for tax years

upon the mailing addresses of those customers

TIES BROKERS OR DEALERS.

beginning on and after July 1, 2005, the source

in the records of the taxpayer. For additional in-

For taxable years beginning after 2008, new

of income from services will be determined by

formation, see Administrative Code section 11-

rules are applicable in determining the sourc-

the place where the services were performed

503(e-3)(1)(C) as added by section 108 of

ing of the receipts of taxpayers which are reg-

(the “place-of-performance method”), instead

Chapter 201 of the Laws of 2009.

istered securities or commodities brokers or

of the office out of which the services were

dealers. See Chapter 201 of the Laws of 2009.

Fees earned from advisory services for a

performed, according to the following phase-

customer in connection with the under-

in schedule: Taxpayers having gross receipts

Receipts earned by registered securities or

writing of securities (where the customer

of less than $100,000 for the first tax year

commodities broker or dealer - The rules

is the entity contemplating the issuance of

starting on or after July 1, 2005 and before

below apply for determining whether a receipt

the securities or is issuing securities) or for

July 1, 2006, must use the place-of-

is deemed to arise from services performed in

the management of an underwriting of se-

performance method starting in that year. Tax-

New York City by a registered securities or

curities are deemed to arise from a service

payers having gross receipts of less than

commodities broker or dealer, for purposes of

performed in New York City if the customer

$300,000 for the first tax year starting on or

computing the gross income factor of the BAP

responsible for paying the fee is located in

after July 1, 2006 and before July 1, 2007,

(Administrative Code section 11-508(e-3)).

New York City.

must use the place-of-performance method

starting in that year. All other taxpayers must

A registered securities or commodities broker

Receipts from the primary spread for the

use the place-of-performance method starting

or dealer is a broker or dealer who is registered

underwriting of securities - Receipts from

with the first tax year beginning on or after

by the Securities and Exchange Commission

the primary spread or selling concession

July 1, 2007.

(SEC) or the Commodities Futures Trading

from underwritten securities are deemed to

For taxable years beginning after June 30,

Commission and includes over-the-counter

arise from a service performed in New York

1996, the amount to be entered on line 3, col-

(OTC) derivatives dealers as defined under

City if production credits are awarded to a

umn A with respect to sales of tangible per-

regulations of the SEC (17 CFR 240.3b-12).

branch, office, or employee of the taxpayer

sonal property is the portion of the total gross

The terms securities and commodities have the

in New York City as a result of the sale of

sales of tangible personal property that repre-

same meanings as the meanings in IRC sec-

underwritten securities.

sents sales where shipment is made to a point

tions 475(c)(2) and 475(e)(2).

within New York City.

Interest earned on loans to affiliates - In-

Brokerage commissions - Brokerage com-

terest earned on loans and advances made

The amount to be entered on line 3a in column B

missions earned from the execution of se-

by a taxpayer to an affiliate are deemed to

is the total gross sales made or charges for serv-

curities or commodities purchase or sales

arise from a service performed in New York

ices performed by the partners or by employees,

orders for the accounts of customers are

City if the principal place of business of the

agents, agencies, or independent contractors of

deemed to arise from a service performed in

affiliate who is responsible for the payment

the unincorporated business inside and outside

New York City if the customer who is re-

of interest is located in New York City. An

New York City.

sponsible for paying the commissions is lo-

entity shall be considered an affiliate with

Do not include royalty income from related mem-

cated in New York City.

the taxpayer for this purpose if the entity

bers that was subtracted on line 24 of Schedule B.

and the taxpayer have an eighty percent or

Margin interest - Margin interest earned

more common direct or indirect, actual or

Partnerships engaged in publishing newspa-

on brokerage accounts is deemed to arise

pers or periodicals must allocate receipts from

beneficial ownership.

from a service performed in New York City

advertising in such publications based on the

if the customer who is responsible for pay-

Fees for management or advisory services

circulation of the publication in the City com-

ing the margin interest is located in New

- Fees earned from management or advisory

pared to the total circulation. Partnerships en-

York City.

services, including fees from advisory serv-

gaged in radio or television broadcasting,

ices for activities relating to mergers or ac-

whether by cable or other means, must allo-

Account maintenance fees - Account

quisition activities, are deemed to arise from

cate receipts from broadcasting programs or

maintenance fees are deemed to arise from

a service performed in New York City if the

commercial messages based upon the location

a service performed in New York City if the

customer responsible for paying these fees

of the audience for the broadcasts in the City

customer who is responsible for paying the

is located in New York City.

compared to the total audience. Partnerships

account maintenance fees is located in New

engaged in publishing newspapers or period-

York City.

A customer is located in New York City if

icals or in radio or television broadcasting

Income from principal transactions -

the mailing address of the customer, as it

must allocate receipts from subscriptions to

Gross income from principal transactions

appears in the broker’s or dealer's records,

such newspapers, periodicals and broadcast

is in New York City. For more information,

(that is, transactions in which the registered

programs based on the location of the sub-

broker or dealer is acting as principal for its

see Administrative Code section 11-503(e-

scriber.

own account, rather than as an agent for the

3) as added by section 108 of Chapter 201

Manufacturers electing to double-weight the

customer) are deemed to arise from a serv-

of the Laws of 2009.

gross income factor should enter the amount

Instructions For Form Nyc-204 -Partnership Return - 2010 Page 14

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