Income And Expense Schedule For Cooperative And Condominium Property Form Tc203 Instructions For 2004
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1THE TAX COMMISSION OF THE CITY OF NEW YORK
1 Centre Street, Room 936, New York, NY 10007
INCOME AND EXPENSE SCHEDULE FOR
TC203INS
COOPERATIVE AND CONDOMINIUM PROPERTY
2004
FORM TC203 INSTRUCTIONS FOR 2004
Attachment to application. The income and expense
or information disclosed in litigation against the sponsor.
schedule, Form TC203, is an attachment to an application for
However, an applicant, who shows that the sponsor
correction.
It is not valid if submitted separately.
The
information cannot be obtained and is not material, may be
application must be filed by March 1. If Form TC203 is not
granted review. For example, the sponsor holds fewer than
available in time to attach to the original application on March
10% of the units in a condominium or cooperative, or the
1, it may be attached to a supplemental application, Form
sponsor’s units are in a different tax class from the
TC150, and filed from March 2 to 24 in 2004.
condominium units under review.
Who should use this form.
Use Form TC203 to report
Shares allocated to professional/non-residential space.
income and expenses from operation of a residential or
The item in Part 5, as to the number of shares allocated to
commercial cooperative or a condominium. A cooperative is a
professional or nonresidential units, may be completed and
property operated by a corporation whose shareholders are
submitted, attached to Form TC159, at the hearing, if the
entitled to occupy a portion of the premises by virtue of their
information is not available by March 1.
stock ownership. Form TC203 should be used for residential,
Itemizing commercial and other income. In Part 8, rental
commercial and mixed-use condominium properties.
income from commercial space must be itemized by area, use
A corporation that operates the residential portion of a
and by master or sponsor lease/direct lease. In Part 9, other
condominium as a cooperative should use Form TC203.
income must be itemized. Total commercial rental and non-
rental income must be stated in Part 6 when TC203 is filed.
Form TC203 should not be used by a sponsor of a cooperative
Part 8 and 9 may be completed and submitted, attached to
or condominium conversion who still holds all the units. If the
Form TC159, at the hearing.
applicant operated the property as a rental last year, use Form
TC201.
If it is shown at a hearing that the information required in Part 8
or 9 is not available and, even if available, would not be
What income and expenses are to be reported. Report all
material, review may be granted although the information is
operating income received or accrued by the cooperative or
generally required.
For example, the information does not
condominium entity in connection with the property. Report
matter because of the small amount of space or rent or
only actual operating expenses. Do not report projections or
proportion of value attributable to the commercial space. Be
reserves. Income from unit owners must be segregated from
ready to support an estimate of market rental value for such
outside income. Income from master leases of commercial
space; in the absence of itemization, an adverse inference will
space and leases with the sponsor or a related person must be
be made on its valuation.
itemized in Part 8.
Do not straight-line lease rent. In reporting rental income in
The Tax Commission will accept income and expense data
Part 6 on the accrual basis, if the reporting entity’s leases
from the year covered by the cooperative corporation’s or
provide scheduled increases in rent, do not straight-line rental
condominium’s most recently available financial statement, as
income as may be required by Financial Accounting Standard
of January 15.
No. 13.
The data must be presented on Form TC203; a copy of the
Amortization.
Amortized
costs
of
common
area
financial statement is not an acceptable substitute.
An
improvements having a useful life of more than one year may
accountant’s certification is not required.
be included as other expenses in Part 7, if you itemize these
amortized costs on an attachment and the amount is amortized
The form has space for figures for the year prior to the
over the useful life of the item. Common area improvements
reporting year. The Tax Commission requests that applicants
include replacements of the existing building components,
provide this information, if available for the full year prior to the
major repairs, and installation of safety and health systems.
most current year.
Examples of replacement costs are replacements of boilers,
roofs, elevators, and residential kitchen appliances and
Sponsor information. Part 4 calls for information about units
cabinets. Examples of safety and health systems are brick
held by the sponsor or other holder of unsold units.
This
pointing, fire safety systems, and environmental remediation.
information must be provided to the best of the applicant’s
knowledge and must be the most recent information available
Related persons. Related persons include individuals related
from the sponsor. Part 4 may be completed and submitted,
by blood, marriage or adoption, individuals and the business
attached to Form TC159, at the hearing, if the information is
entities they control, business entities under common control,
not available by March 1.
The information must be more
and fiduciaries and the beneficiaries for whom they act. A
recent than September 29, 2003. By restating the information
person includes a corporation or other business entity.
on the Tax Commission form, the applicant attests based on
Floor area. Where gross floor area is called for in Part 8, state
personal knowledge only that the source of the information is
appropriate and is not contradicted by any other information in
the approximate gross floor area, if known. If applicant does
the applicant’s possession. When available, a detailed rent roll
not know the floor area, these items may be left unanswered.
of the unsold units may help support the applicant’s claim.
Sources may include filings with the Attorney General,
Tax Commission application forms and all attachments are
information supplied in connection with mortgage applications
subject to public disclosure.
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