Instructions For Form Nyc-204 -Partnership Return

Instructions for Form NYC-204 - 2010

Page 5

clude the company or corporation name and

LINE 2 - BUSINESS ALLOCATION

other than a mobile telecommunication part-

Employer Identification Number, if applicable.

PERCENTAGE

nership, on line 24 of Schedule B of this form

Taxpayers not allocating income should enter

should add back the same percentage of such

Preparer Authorization:

If you want to

income or gain as the other partnership allo-

100% on line 2, then complete lines 4 and 5.

allow the Department of Finance to discuss

cated to the City for purposes of determining

For tax years beginning on or after January 1,

your return with the paid preparer who signed

its own business income.

2005, except as provided in the following sen-

it, you must check the "yes" box in the signa-

tence, taxpayers must allocate business in-

ture area of the return. This authorization ap-

Taxpayers

who added back a distributive

come using the formula method. However,

plies only to the individual whose signature

share of business loss or deductions from an-

taxpayers who used the books and records

appears in the "Preparer's Use Only" section

other partnership, other than a mobile

method for the two immediately preceding tax

of your return. It does not apply to the firm, if

telecommunication partnership, on line 15 of

years, which must have consisted of 12

any, shown in that section. By checking the

Schedule B of this form should subtract the

months each, may make a one-time election to

"Yes" box, you are authorizing the Department

same percentage of such loss or deductions as

continue using the books and records alloca-

of Finance to call the preparer to answer any

the other partnership allocated to the City for

tion method for each tax year beginning on

questions that may arise during the processing

purposes of determining its own business in-

and after January 1, 2005 and before January

of your return. Also, you are authorizing the

come. See instructions for lines 15 and 24.

1, 2012. See instructions for Schedule E for

preparer to:

more information.

LINE 7b

Give the Department any information

Taxpayers who subtracted a distributive share

missing from your return,

Taxpayers allocating income for Unincorpo-

of investment income or gain from another

rated Business Tax purposes and using the

Call the Department for information

partnership, other than a mobile telecommuni-

statutory formula basis (Schedule E) should

about the processing of your return or the

cation partnership, on line 24 of Schedule B of

determine the business allocation percentage

status of your refund or payment(s), and

this form should add back the same percentage

to be used here by completing Schedule E,

of such income or gain as the other partnership

Respond to certain notices that you have

allocated to the City for purposes of determin-

Parts 1, 2 and 3. Transfer the percentage from

shared with the preparer about math er-

ing its own investment income.

Schedule E, Part 3, line 6 to line 2 of this

rors, offsets, and return preparation. The

schedule rounded to the nearest one hundredth

notices will not be sent to the preparer.

Taxpayers who added back a distributive share

of a percentage point and check the “formula”

of investment loss or deductions from another

You are not authorizing the preparer to re-

box.

partnership, other than a mobile telecommuni-

ceive any refund check, bind you to anything

cation partnership, on line 15 of Schedule B of

(including any additional tax liability), or oth-

Eligible taxpayers electing to allocate income

this form should subtract the same percentage

erwise represent you before the Department.

on the basis of business books and records

of such loss or deductions as the other partner-

The authorization cannot be revoked, however,

should check the box on the top of page 1,

ship allocated to the City for purposes of de-

the authorization will automatically expire no

check the second box on line 2, omit the per-

termining its own partnership income.

later than the due date (without regard to any

centage and disregard lines 3a and 5. Enter on

extensions) for filing next year's return. Fail-

line 10 the sum of lines 1, 3b and 9. (Refer to

LINE 9 - ALLOCATED INVESTMENT

ure to check the box will be deemed a denial

INCOME

the instructions for Schedule E.)

of authority.

Only the amount on line 7a should be multi-

plied by the IAP. After determining the prod-

Taxpayers allocating income on the basis of an

SPECIFIC INSTRUCTIONS

uct of the amount on line 7a and the IAP enter

alternative method of allocation must complete

the sum of that product and the amount on line

Schedule E, Parts 1, 2 and 3 and attach an ex-

If this is an amended return, check the box on

7b on this line. If the investment allocation

planation of the alternative method. Include a

page 1.

percentage is zero, interest on bank accounts

computation of the tax due using the alterna-

must be multiplied by the business allocation

tive method. (Refer to the instructions for

Check the box on page 1 of this form if, on your

percentage.

Schedule E, Alternative Allocation Method.)

federal return: (i) you reported bonus depreci-

ation and/or a first year expense deduction

LINE 10 – TOTAL BEFORE NOL

LINE 3a - INCOME, GAIN OR LOSS

under IRC §179 for "qualified New York Lib-

DEDUCTIONS

FROM NYC REAL PROPERTY

erty Zone property," "qualified New York Lib-

For taxpayers using formula allocation, enter on line

The business allocation percentage is not ap-

erty Zone leasehold improvements," or

10 the sum of the amount on line 9 and the amounts

plied to income from rentals of New York City

"qualified Resurgence Zone property," re-

on lines 5 and 6. For taxpayers electing to use the

real property or gains or losses from the sale of

gardless of whether you are required to file

books and records method of allocating business in-

New York City real property. Enter here the

form NYC-399Z, (ii) you claimed a federal tar-

come, enter on line 10 the sum of the amount on

modified gain (or loss) from the sale or ex-

geted jobs credit for Liberty Zone business em-

line 9 and the amounts on lines 1 and 3b.

change and net income from rental of real prop-

ployees, or (iii) you replaced property

erty located in New York City included on line

involuntarily converted as a result of the at-

UNINCORPORATED BUSINESS NET

1 of Schedule A. This is the gain (or loss) and

tacks on the World Trade Center during the

OPERATING LOSS

net rental income included on line 12 of Sched-

five (5) year extended replacement period. You

If line 10 shows a net loss from business, this

ule B, as adjusted for the portion of the New

must attach Federal forms 4562, 4684, 4797 and

loss is the partnership’s 2010 unincorporated

York City modifications (Schedule B, part 2)

8884 to this return. See instructions for Schedule

business net operating loss that may be carried

applicable to such items. If New York City

B, lines 14d, 19 and 20 for more information.

back or forward as provided below. Only the

modifications are not applicable, enter on line

first $10,000 of each year’s loss may be carried

3a the full amount of gain (or loss) and net

SCHEDULE A

back. The carryback period for City purposes

rental income included on line 12 of Schedule

Computation of Tax

generally corresponds to the federal carryback

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

period available for individuals. Because a part-

graph 6.)

LINE 1 - BUSINESS INCOME

nership does not carry over NOLs, it will not

Enter on line 1, the total from page 2, Schedule

have made a Federal election with regard to any

LINE 3b

B, line 32.

net operating loss carryover. Therefore, for City

Taxpayers who subtracted a distributive share

tax purposes for losses arising in taxable years

of income or gain from another partnership,

Instructions For Form Nyc-204 -Partnership Return - 2010 Page 6

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