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Page 24 of 29 CT-3/4-I (2006)

Line instructions for Form CT-3-ATT

Line 18 — Enter the amount of noninterest deductions that are indirectly

In column D, on the line for the asset in question, include the sum of

attributable to investment capital, or to income, gains, or losses from

the amount from line O of the Schedule C worksheet and the amount of

investment capital, from Line 18 worksheet, line R, on page 28.

liabilities directly attributable to that asset.

Schedule C worksheet

If you completed the Line 5b worksheet on page 27, skip lines A through I

on the Line 18 worksheet, and enter on line J the amount from the Line 5b

worksheet, line J.

Liabilities indirectly attributable to a particular asset

Line 21 — Apportion any NOLD claimed on Form CT-3, line 13, between

A. Total liabilities

(enter amount from Form CT-3,

business income and investment income. Divide investment income before

................................................. A.

line 31, column C)

deduction of any NOL by ENI before deduction of any NOL. Multiply the

Liabilities directly attributable to:

result by the NOLD and enter this amount.

B. Subsidiary capital.................................................. B.

Schedule C

C. Investment capital ................................................. C.

D. Business capital .................................................... D.

Complete this schedule if you have any subsidiaries. A subsidiary is a

E. Total liabilities directly attributable

(add lines B,

corporation of which the taxpayer owns more than 50% of the total number

............................................................. E.

C, and D)

of shares of the corporation’s voting stock, issued and outstanding. A DISC

is not a subsidiary.

F. Total liabilities indirectly attributable

(subtract

................................................. F.

line E from line A)

Do not include stocks, bonds, and other securities issued by, and any

indebtedness from, a QSSS in the computation of subsidiary capital, if the

G. Average value of subsidiary capital

(enter amount

QSSS is included in the parent’s return (see page 3).

................... G.

from Form CT-3-ATT, line 27, column C)

H. Average value of adjusted total assets

(enter

Schedule C, Part 1

— Income attributable to

.............. H.

amount from Form CT-3, line 30, column C)

subsidiary capital

I. Divide line G by line H ..........................................

J. Multiply line F by line

.......................................... J.

Lines 23 through 25 — Enter interest, dividends, and capital gains

attributable to subsidiary capital. In addition, include on line 25 items such

K. Value of the particular asset ................................. K.

as collapsible corporation gain and sale of subsidiary capital that is not a

L. Enter amount from line G ...................................... L.

capital asset for federal tax.

M. Divide line K by line L ........................................... M.

Schedule C, Part 2 —

Computation and allocation

N. Enter amount from line J ....................................... N.

of subsidiary capital base and tax

O. Liabilities indirectly attributable to a particular

asset

................................. O.

(multiply line M by line N)

Subsidiary capital is the taxpayer’s total investment in shares of capital stock

of its subsidiaries, and the amount of indebtedness owed to the taxpayer

by its subsidiaries (whether or not evidenced by written instruments) on

Column E — Determine the net average value of each item listed in

which interest is not claimed and deducted by the subsidiary against any

column A by subtracting column D from column C. The net average value of

tax imposed by Article 9-A, 32 or 33, minus liabilities directly or indirectly

any item cannot be less than zero.

attributable to subsidiary capital.

Column F — Enter the issuer’s allocation percentage for each item listed

When computing the amount of indebtedness owed to the taxpayer by its

in column A. See the instructions for Form CT-3-ATT, Schedule B, Part 1,

subsidiaries, consider each subsidiary separately. You may offset loans and

Section 1, column F, on page 22.

advances from the parent to the subsidiary by loans and advances from the

same subsidiary to the parent, but they may not be reduced to less than

Column G — Multiply net average value, column E, of each item listed in

zero. Loans and advances from a subsidiary to the parent may not offset

column A by its issuer’s allocation percentage in column F. This is the value

the parent’s investment in the stock of the subsidiary or offset loans and

of subsidiary capital allocated to New York State.

advances from the parent to any other subsidiary.

Line 30 — Deduct 100% of the value of subsidiary capital for subsidiaries

Subsidiary capital does not include accounts receivable acquired in the

subject to tax under Tax Law Article 32 (banking corporations), Article 33

ordinary course of trade or business either for services rendered or for the

(insurance corporations), and Article 9, section 186. Attach a breakdown of

sale of property primarily held for sales to customers. You must reduce each

subsidiaries eligible for this deduction.

item of subsidiary capital by any of the parent’s liabilities that are directly or

Line 32 — Multiply line 31 by the tax rate of .0009. This is your subsidiary

indirectly attributable to that item of subsidiary capital.

capital base tax. Enter this amount on Form CT-3, line 77.

Do not include stocks, bonds, and other securities issued by, and any

indebtedness from, a QSSS in the computation of subsidiary capital if the

Schedule D

— Qualified public utilities and

QSSS is included in the parent’s return (see page 3).

transferees, qualified power producers, and

Column C — Enter the average value of each item of subsidiary capital.

Average value is generally computed quarterly if your usual accounting

qualified pipeline corporations

practice permits it. However, you may use a more frequent basis such as a

monthly, weekly, or daily average. If your usual accounting practice does not

General

permit a quarterly or more frequent computation of average value, you may

use a semiannual or annual computation if no distortion of average value

Qualified public utility corporations must adjust ENI to reflect modifications

results. Value marketable securities at fair market value, and value other

for depreciation, and federal gain or loss on transition property, and for

items of subsidiary capital using GAAP.

regulatory assets pursuant to Tax Law section 208.9(c-2). Complete

Schedule D, Part 1.

Column D — Deduct all liabilities, both long-term and short-term, directly

or indirectly attributable to subsidiary capital. Use the same method of

Transferees (whether or not qualified public utilities) of transition property

averaging used to determine the average value of assets in column C. Enter

from a qualified public utility in a tax-free transaction must adjust ENI to

for each item of subsidiary capital listed in column A the liabilities directly or

reflect modifications to federal gain or loss subsequently recognized on

indirectly attributable to it. Liabilities directly attributable to an asset (stock or

the transition property, pursuant to Tax Law section 208.9(c-2)(6)(B)(iv).

debt) are those that were incurred to acquire that asset.

Complete only lines 40, 41, and 43.

Use the Schedule C worksheet below to determine the amount of liabilities

Qualified power producers and qualified pipeline corporations must adjust

indirectly attributable to a particular asset.

ENI to reflect modifications for depreciation on transition property pursuant

to Tax Law section 208.9(c-3). Complete Schedule D, Part 2.

Form Ct-3/4-I - Instructions For Forms Ct-4, Ct-3, And Ct-3-Att - General Business Corporation Franchise Tax Returns - 2006 Page 10

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