Instructions For Form Nyc-204 -Partnership Return

Instructions for Form NYC-204 - 2010

Page 8

side New York City and you are electing to de-

Line 14d: The Federal bonus depreciation al-

In place of the federal depreciation deduc-

termine New York City income from the books

lowed for "qualified property," as defined in

tion, a depreciation deduction using pre-

and records of the business, enter in part 2 only

IRC section 168(k) is not allowed for Unincor-

ACRS or MACRS rules (IRC Section 167) is

those additions and subtractions that relate to

porated Business Tax purposes except for such

allowed.

the New York City items reported on lines 1

deductions allowed with respect to "qualified

Enter on line 14d the ACRS depreciation de-

through 9 of Schedule B, part 1.

New York liberty zone property", "qualified

duction used in computing, part 1, line 12.

New York liberty zone leasehold improve-

(Refer to instructions for line 20.) (Attach

- ADDITIONS -

ments" and "qualified property" placed in serv-

Form NYC-399 and/or NYC-399Z.)

ice in the Resurgence Zone (generally the area

LINE 13 - INCOME AND

in the borough of Manhattan South of Houston

Line 14e: Exempt Activities. Deductions and

UNINCORPORATED BUSINESS TAXES

Street and North of Canal Street.) For City tax

losses attributable to activities not considered

Enter the amount of income and unincorpo-

purposes, depreciation deductions for all other

part of an unincorporated business must be

rated business taxes imposed by New York

"qualified property" must be calculated as if the

added back. See “Who is Subject to the Tax”.

City, New York State or any other taxing juris-

property was placed in service prior to Septem-

Add back losses, interest, depreciation and any

diction that were deducted in computing part

ber 11, 2001. For tax years beginning on or

other expenses deducted for federal income tax

1, line 12.

purposes directly or indirectly attributable to

after January 1, 2004, other than for eligible

farmers (for purposes of the New York State

the holding, leasing or managing of real prop-

LINE 14 - MODIFICATIONS RELATING

farmers' school tax credit), the amount allowed

erty (including any business conducted at the

TO ITEMS OF TAX CREDIT AND DEDUC-

as a deduction with respect to a sport utility ve-

property as an incidental service to tenants) or

TION

hicle that is not a passenger automobile for pur-

to the income or gain therefrom, if such hold-

Line 14a: The credit for sales tax paid on elec-

ing, leasing or managing of property is exempt

poses of section 280F(d)(5) of the Internal

tricity or electric service used in the production

Revenue Code is limited to the amount allowed

from Unincorporated Business Tax under NYC

of certain tangible property formerly allowed by

under section 280F of the Internal Revenue

Administrative Code Section 11-502(d) in tax-

Admin. Code §11-503(g) has been repealed for

Code as if the vehicle were a passenger auto-

able years beginning on or after July 1, 1994

purchases on or after November 1, 2000. No

mobile as defined in that section. With respect

or January 1, 1996, in the case of parking serv-

amount should be added back with respect to

to SUV’s placed into service after December

ices rendered to tenants at a garage open to the

this credit.

31, 2007 and before January 1, 2011, Federal

public. (Refer to “Who is Subject to the Tax”,

bonus first year depreciation for passenger au-

paragraph 6.)

Purchases of machinery or equipment for which

tomobiles allowed under the Economic Stimu-

Add back losses, interest or other expenses de-

a credit is allowed by Admin. Code §11-503(d)

lus Act of 2008, the American Recovery and

ducted for federal income tax purposes directly

were exempted from sales tax effective De-

Reinvestment Act of 2009 or the Small Busi-

or indirectly attributable to notional principal

cember 1, 1989. Purchases of services per-

ness Jobs and Credit Act of 2010 is disallowed

contracts, the holding, sale, disposition, assump-

formed on machinery or equipment used in

for SUVs except for SUVs that are “Qualified

tion, offset or termination of a position in prop-

production for which a credit is allowed by

Resurgence Zone property.” For SUVs that are

erty as defined in Admin. Code §11-502(c) (1)

Admin. Code §11-503(k) were exempted from

qualified property other than qualified Resur-

(A), or other substantially similar losses from or-

sales tax effective September 1, 1996. Cred-

gence Zone property and other than New York

dinary and routine trading or investment activity

its may be taken under these two provisions

Liberty Zone property, the amount allowed as

as determined by the Commissioner, realized in

only if the sales tax payment was made in the

a deduction is calculated as of the date the SUV

connection with certain investment activities to

current year with respect to a purchase in a pe-

was actually placed in service and not as of

the extent such activities are considered exempt

riod when the applicable sales tax was effec-

September 10, 2001. On the disposition of an

from the Unincorporated Business Tax. Refer to

tive. In such case, the sales tax excluded or

SUV subject to the limitation, the amount of

“Who is Subject to the Tax”, Paragraph 5.

deducted for federal tax purposes should be

any gain or loss included in income must be ad-

added back. If you are claiming a credit pur-

justed to reflect the limited deductions allowed

In the case of a taxpayer that qualifies for the

suant to §11-503(d), a Form NYC 114.5 for the

for City purposes under this provision. Enter

partial investment exemption (see: “Who is

year 1990 or a prior year should be used. If you

on Schedule B, lines 14(d) and 20 the appro-

Subject to the Tax”, paragraph 5), add back

are claiming a credit pursuant to §11-503(k), a

priate adjustments from form NYC-399Z. See

losses, interest or other expenses deducted for

Form NYC 114.5 for the year 2000 or a prior

Finance Memorandum 09-5, “Application of

federal income tax purposes directly or indi-

year should be used.

IRC §280F Limits to Sport Utility Vehicles” for

rectly attributable to the sale or other disposi-

more information.

Line 14b: Taxpayers claiming the real estate

tion of an interest in another unincorporated

tax escalation credit or employment opportu-

The federal depreciation deduction computed

entity to the extent attributable to activities of

nity relocation costs credit or industrial busi-

under the Accelerated Cost Recovery System

that entity covered by the taxpayer’s partial ex-

ness zone credit must enter the sum of the

(ACRS) or the Modified Accelerated Cost Re-

emption.

amounts shown on lines 4 and 5, respectively,

covery System (MACRS) (IRC Section 168) is

of Form NYC-114.6.

LINE 15 - OTHER ADDITIONS

not allowed for property placed in service in

New York State in taxable years beginning be-

If you have received a distributive share of in-

Line 14c: Enter any amounts deducted in

fore January 1, 1985 (except recovery property

vestment or business loss or deductions from

computing part 1, line 12, for:

any partnership, other than a mobile telecom-

subject to the provisions of IRC Section 280-F).

interest on money borrowed to

munications partnership as described below,

ACRS and MACRS may not be allowed for

purchase or carry bonds or securi-

add back here any distributive share amounts

property placed in service outside of New York

ties, the interest on which is ex-

of such loss or deductions included in calcu-

State in taxable years beginning after 1984 and

empt from the Unincorporated

lating the amount on line 12 of this schedule

before January 1, 1994 (except property sub-

Business Tax;

and not previously added back on line 11.

ject to the provisions of IRC Section 280-F).

NOTE: A corresponding subtraction may have

ii)

expenses that relate to exempt in-

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

For additional information regarding depreciation

come or to property held for the

instructions for those lines.

deductions for property placed in service outside

production of exempt income; and

of New York after 1984 and before 1994, see Fi-

Mobile Telecommunications Partnerships.

iii)

amortization of bond premium on

nance Memorandum 99-4 “Depreciation for

For tax years beginning on or after August 1,

any bond, the interest on which

Property Placed in Service Outside New York

2002, partnerships that are partners in partner-

constitutes exempt income.

after 1984 and Before 1994”.

Instructions For Form Nyc-204 -Partnership Return - 2010 Page 9

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