Instructions For Form Nyc-202 - Unincorporated Business Tax Return

Instructions for Form NYC-202 2006

Page 11

If a building is erected on land leased by or on

the total gross sales or charges that represents

distribution services provided to a regulated

behalf of the business, the value of the build-

services performed by or through an agency in

investment company (RIC) must be allocated

ing is determined in the same manner as if it

New York City. This includes services per-

based upon the percentage of the RIC's share-

were owned by the business. The value of the

formed by employees, agents, agencies or

holders domiciled in New York City. (Attach

underlying land is determined by multiplying

independent contractors situated at, connected

Rider showing computation.) See Admin.

the gross annual ground rent by eight. Enter

with, or sent out from, offices of the unincor-

Code §11-508(e-2).

the value of rented real property located with-

porated business (or its agencies) located in

in New York City in column A and the value of

New York City. Notwithstanding the forego-

SCHEDULE D

all rented real property in column B.

ing, for tax years beginning on and after July 1,

Investment Allocation

2005, the source of income from services will

Complete Schedule D if you have investment cap-

LINE 1c - TANGIBLE

be determined by the place where the services

ital. Investment capital is the average value of your

PERSONAL PROPERTY OWNED

were performed (the “place-of-performance

investments in stocks, bonds, and other corporate

Enter in column A the average value of tangi-

method”), instead of the office out of which the

or government securities, less liabilities, both long

ble personal property located within New York

services were performed, according to the fol-

term and short term, directly or indirectly attribut-

City. Enter in column B the average value of

lowing phase-in schedule: Taxpayers having

able to investment capital. Investment capital does

all tangible personal property connected with

gross receipts of less than $100,000 for the first

not include governmental stocks, bonds and other

the business both inside and outside New York

tax year starting on or after July 1, 2005 and

securities the interest and dividends from which are

City.

before July 1, 2006 must use the place-of-per-

totally exempt from the UBT, except such instru-

formance method starting in that year.

The average value of the property is deter-

ments that are disposed of during the taxable year,

Taxpayers having gross receipts of less than

mined by adding:

producing taxable gain or loss. Investment capital

$300,000 for the first tax year starting on or

does not include those stocks, bonds or other secu-

its value at the beginning of the taxable

after July 1, 2006 and before July 1, 2007, must

rities that are held for sale to customers in the reg-

year, and

use the place-of-performance method starting

ular course of business. Investment capital does

in that year. All other taxpayers must use the

its value at the end of the taxable year,

not include interests in, or obligations of, partner-

place-of-performance method starting with the

and dividing by two.

ships or other unincorporated entities.

first tax year beginning on or after July 1,

2007.

To determine the value of your assets for invest-

LINE 1d – TANGIBLE PERSONAL

ment allocation purposes, you must include mar-

PROPERTY RENTED FROM OTHERS

For taxable years beginning after June 30,

ketable securities at fair market value.

For tax years beginning on or after January 1,

1996, the amount to be entered on line 3 in col-

2005, rented tangible personal property must be

umn A with respect to sales of tangible person-

The fair market value of any asset is the price

included in the property factor. The value of the

al property is the portion of the total gross sales

(without any encumbrance, whether or not the

rented tangible personal property to be included

of tangible personal property that represents

taxpayer is liable) at which a willing seller, not

in line 1d is eight times the gross rent payable for

sales where shipment is made to a point within

compelled to sell, will sell and a willing purchas-

the tangible personal property during the tax year.

New York City.

er, not compelled to buy, will buy. The fair mar-

ket value, on any date, of stocks, bonds and other

Do not include payments for the use of intan-

LINE 2 - WAGES, SALARIES AND

securities regularly dealt in on an exchange or in

gibles from related members that were sub-

OTHER PERSONAL SERVICE

the over-the-counter market is the mean between

tracted on line 20 of Schedule B. See

COMPENSATION

the highest and lowest selling prices on that date.

"Highlights of Recent Tax Law Changes for

The amounts to be entered on line 2 include

Unincorporated Businesses."

The value of all other property must be included

wages, salaries, and other personal service

at the value shown on the taxpayer’s books and

compensation paid only to employees of the

Taxpayers engaged in publishing newspapers

records in accordance with generally accepted

unincorporated business. Do not include pay-

or periodicals must allocate receipts from

accounting principles (GAAP).

ments to independent contractors or independ-

advertising in such publications based on the

ent sales agents. The portion that represents

circulation of the publication in the City com-

ISSUER’S ALLOCATION

the amount paid in connection with operations

pared to the total circulation.

Taxpayers

carried on in New York City should be entered

PERCENTAGE

engaged in radio or television broadcasting,

To determine the portion of investment capital

on line 2 in column A. The total compensation

whether by cable or other means, must allocate

to be allocated within the City, multiply the

paid to employees during the taxable year in

receipts from broadcasting programs or com-

connection with unincorporated business oper-

value of each stock or security during the peri-

mercial messages based upon the location of

od covered by the return (column E) by the

ations carried on both inside and outside New

the audience for the broadcasts in the City

issuer’s allocation percentage for that stock or

York City should be entered in column B.

compared to the total audience. Taxpayers

security.

engaged in publishing newspapers or periodi-

If an employee works in or travels out of an

This percentage may be obtained (1) from tax

cals or in radio or television broadcasting must

office or other place of business within New

allocate receipts from subscriptions to such

service publications, (2) by writing to: NYC

York City, the compensation paid to that

Department of Finance, Customer Assistance -

newspapers, periodicals and broadcast pro-

employee for services is part of operations car-

grams based on the location of the subscriber.

Correspondence Unit, 59 Maiden Lane, 14th

ried on within New York City and must be

Floor, New York, NY 10038 or (3) by calling

included in New York City amounts.

Manufacturers electing to double-weight the

(212) 504-4036. If the issuer was not doing

gross income factor should enter the amount

LINES 3a and 3b - GROSS SALES

business in New York City during the preceding

from line 3a, Column C, on line 3b. See 19

OF MERCHANDISE OR CHARGES

year, the percentage is “0”.

RCNY §28-07(d) for rules relating to the defi-

FOR SERVICES RENDERED DURING

nition of manufacturing.

THE YEAR

SCHEDULE D, LINE 3 - CASH

Except as provided below, the amount to be

If you have both business and investment cap-

Receipts from management, administration or

entered on line 3a in column A is the portion of

ital, you may elect to treat cash on hand or on

Instructions For Form Nyc-202 - Unincorporated Business Tax Return - 2006 Page 11

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