Instructions For Form Nyc-204 -Partnership Return

Instructions for Form NYC-204 - 2010

Page 7

termined without regard to any extension of time),

SCHEDULE B

Portfolio income includes interest, dividends,

interest must be paid on the amount of the under-

Computation of Total Income

royalties, annuity income and gain (loss) on the

payment from the due date to the date paid. For

disposition of property. (Attach a schedule in-

PART 1 - ITEMS OF BUSINESS INCOME,

information regarding interest rates, visit the Fi-

dicating type and amount of portfolio income.)

GAIN, LOSS OR DEDUCTION

nance website at nyc.gov/finance or call 311. If

Amounts on lines 1 through 12 are to be entered

LINE 8 - ADDBACK OF OTHER

calling from outside of the five NYC boroughs,

from the federal Partnership Tax Return and

DEDUCTIONS

please call 212-NEW-YORK (212-639-9675).

Schedule K. Attach federal Form 1065 or Form

Enter on line 8 those deductions included in

For further information about estimated tax pay-

1065-B and all schedules, including individual

lines 1 and 2 that are not allowed in computing

ments and due dates see Form NYC-5UB.

Schedules K-1.

unincorporated business taxable income, other

LINE 29b - LATE PAYMENT OR LATE

than the guaranteed payments entered on line

Where a partnership carries on two or more

FILING/ADDITIONAL CHARGES

4, the payments to current or retired partners

unincorporated businesses, either wholly or

A late filing penalty is assessed if you

on line 5 and the New York City modifications

partly in New York City, all are treated as

fail to file this form when due, unless the

on lines 13 through 15. For example, the part-

one business for purposes of the Unincorpo-

failure is due to reasonable cause. For

nership’s contributions to retirement plans for

rated Business Tax. Combine the net in-

every month or partial month that this

partners (if deducted on Form 1065, page 1 or

come of all business activities and enter on

form is late, add to the tax (less any pay-

Form 1065-B) are entered on line 8. If you are

lines 1 through 9. An unincorporated entity

ments made on or before the due date)

electing to use the books and records

(not an individual) is considered to be car-

5%, up to a total of 25%.

method of allocation, enter amount alloca-

rying on any trade, business, profession or

ble to New York City.

If this form is filed more than 60 days

occupation carried on in the City by any

late, the above late filing penalty cannot

other unincorporated entity in which the tax-

LINE 9 - OTHER ITEMS

be less than the lesser of (1) $100 or (2)

payer owns an interest. An unincorporated

Enter the net amount of the partners’ distribu-

100% of the amount required to be shown

entity will not be considered to be conduct-

tive shares of income and deduction items not

on the form (less any payments made by

ing an unincorporated business in the City

included in any other line on Form NYC-204,

the due date or credits claimed on the re-

as a result of owning an interest in another

Schedule B, but required to be reported sepa-

turn).

unincorporated entity if the second entity is

rately to complete federal Form 1065 or 1065-

not engaged in any activity in the City.

A late payment penalty is assessed if

B. (Attach schedule.)

Deduction items

you fail to pay the tax shown on this form

reported separately on Form 1065 or 1065-B

If business is carried on both inside and out-

by the prescribed filing date, unless the

that constitute payments to partners for pur-

side New York City and the taxpayer is

failure is due to reasonable cause. For

poses of the Unincorporated Business Tax,

electing to allocate business income ac-

every month or partial month that your

such as amounts paid for a partner’s medical

cording to the books and records of the busi-

payment is late, add to the tax (less any

insurance are not deductible for Unincorpo-

ness, report in Schedule B, part 1, the New

payments made) 1/2%, up to a total of

rated Business Tax purposes. These amounts

York City income and deductions only.

25%.

should be listed on the attached schedule for

Apply the New York City modifications de-

informational purposes, but not deducted in de-

scribed in part 2 that relate to the New York

The total of the additional charges in a

termining the net amount to be entered on this

City items reported.

and c may not exceed 5% for any one

line. If you are electing to use the books and

month except as provided for in b.

If the taxpayer is using an alternative

records method of allocation, enter amount

method of allocation and a percentage for-

allocable to New York City.

If you claim not to be liable for these addi-

mula is used other than the statutory for-

tional charges, attach a statement to your re-

LINE 11 - INCOME OR GAIN - SALE OR

mula, enter the amounts from the federal

turn explaining the delay in filing, payment or

EXCHANGE OF REAL PROPERTY

tax return on lines 1 through 11 of this

both.

Rental income or loss from real property located

schedule. If a direct allocation method is

outside New York City and gain or loss on dis-

used, report in Schedule B, part 1, the New

LINES 31 and 32 - NET OVERPAYMENT

position of real property located outside New

York City income and deductions only.

If there is an overpayment on line 31, enter on

York City are not considered for purposes of

Apply the New York City modifications

line 32a the amount of overpayment to be re-

computing the unincorporated business tax.

described in part 2 that relate to the New

funded. Enter on line 32b the amount to be cred-

Therefore, to exclude this income, gain or loss,

York City items reported. (Refer to the in-

ited to the 2011 estimated tax on Form

subtract on line 11 the amount included on line

structions for Schedule E, Business Allo-

NYC-5UB. If line 25 is less than zero, disregard

10 if income or gain is reported, and add this

cation for further details.)

negative sign and add that amount to line 26.

amount on line 11 if a loss is reported. Do not ex-

NOTE: A partnership that makes an election under

clude the rental income from property located in

LINE 33 - TOTAL REMITTANCE DUE

IRC Section 754 may not adjust the basis of its as-

New York City even if not considered an unin-

If the amount on line 28 is not greater than zero,

sets on the sale or purchase of an interest in the part-

corporated business. (Refer to “Who is Subject to

enter on line 33 the sum of the amount on line 27

nership.

the Tax”, paragraph 6)(See instructions for line

and the amount by which line 30 exceeds line 28,

14(e).)

if any. After completing this return, enter the

LINES 1, 2, 3 AND 4

amount of your remittance on line A. This must

Enter on line 1 the ordinary income (loss) from

PART 2 - NEW YORK CITY

be the full amount as shown on line 33. All re-

federal Form 1065, line 22 or 1065-B, Part I,

MODIFICATIONS

mittances must be payable in U.S. dollars drawn

line 25. Enter on line 2 net income (loss) from

It may be necessary to make certain additions

on a U.S. bank. Checks drawn on foreign banks

all rental real estate activity not included on

to or subtractions from the amount reported on

will be rejected and returned. Remittances must

line 1 but included on Schedule K of federal

Schedule B, part 1, line 12 to arrive at total in-

be payable to:

Form 1065 or 1065-B. Enter on line 3 portfo-

come from business to be reported on line 27.

NYC Department of Finance.

lio income included on federal Schedule K.

If any of the following items is applicable,

Enter on line 4 guaranteed payments to part-

The entire balance due must be paid with the

complete part 2 showing the nature and amount

ners properly reportable on Schedule K. If you

return and is not to be transferred to or paid on

of each item. If none of these applies, transfer

are electing to use the books and records

any other return.

the amount on line 12 to line 27 of Schedule B.

method of allocation, enter amount alloca-

If the business is carried on both inside and out-

ble to New York City.

Instructions For Form Nyc-204 -Partnership Return - 2010 Page 8

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