Instructions For Form Nyc-202 - Unincorporated Business Tax Return

Instructions for Form NYC-202 2006

Page 2

If line 4 does not exceed $55,000 you

that percentage of their entire net

(determined without regard to any deduc-

income allocable to the City which

tions) from an unincorporated business

may use Form NYC-202 EZ.

their non-utility receipts bear to

will not disqualify the taxpayer for this

If you are filing for a period of less than

their total receipts);

exemption.

12 months, refer to Form NYC-202 EZ to

any entity carrying on an insurance

A person that is an owner, lessee or fiduci-

determine whether you may use that

business as a member of the New

ary will not be deemed to be engaged in an

form.

York Insurance Exchange (author-

unincorporated business solely by reason

Taxpayers who allocate business income,

ized in Section 6201 of the

of the holding, leasing or managing of real

who file as an estate or trust, or who have

Insurance Law); or

property. For taxable years beginning on

NYC modifications other than line 3 of

or after July 1, 1994, if an individual or

Real Estate Mortgage Investment

the worksheet are required to file Form

unincorporated entity is carrying on an

Conduits (REMICs).

Holders of

NYC-202.

unincorporated business in whole or in

interests in a REMIC remain tax-

part in the City, and is also holding, leas-

able on such interests or on the

WHO IS SUBJECT TO THE TAX

ing or managing real property as an owner,

income from such interests.

The Unincorporated Business Tax

lessee or fiduciary, the holding, leasing or

imposed on any individual or unincorpo-

certain wireless telecommunications

managing of the property will not be con-

rated entity (including a partnership,

service providers - Effective for tax

sidered an unincorporated business to the

fiduciary or corporation in liquidation

periods beginning on and after

extent that the real property is held for the

and including any incorporated entity

August 1, 2002, entities that receive

purposes of producing rental income or

treated as a partnership for federal

eighty percent or more of their gross

gain on the disposition of the real proper-

income tax purposes) engaged in any

receipts from charges for providing

ty, provided, however, this partial

trade, business, profession, or occupation

mobile telecommunications services

exemption for rental real estate is not

wholly or partly carried on within New

to customers will be taxed as if they

available to a dealer holding real prop-

York City.

were regulated utilities for purposes

erty primarily for sale to customers in

of the New York City Utility Tax and

Income received from the practice of law,

the ordinary course of the dealer’s

Unincorporated Business Tax. Thus,

medicine, dentistry, architecture, or any

trade or business. The operation by any

such entities will be subject to only

other profession is subject to the

taxpayer, otherwise eligible for the partial

the New York City Utility Tax and

Unincorporated Business Tax.

exemption, of a garage or other business at

not the Unincorporated Business

S Corporations are not subject to the

the property solely for the benefit of ten-

Tax.

Unincorporated

Business

Tax.

ants in the property that is not open or

An individual, trust or estate, except a

Corporations are subject to the General

available to the general public will be con-

dealer as defined in Admin. Code §11-

Corporation Tax.

sidered to be incidental to the holding,

501 (l) will not be deemed engaged in an

leasing or managing of the property and

The Unincorporated Business Tax does

unincorporated business solely by reason

will not be considered an unincorporated

not apply to:

of the conduct of the following activities

business. However, if such a taxpayer

any entity subject to the tax imposed

for the taxpayer’s own account: the pur-

operates a garage or other business at the

by Title 11, Chapter 6 (General

chasing, holding or selling of property

property that also is open or available to

Corporation Tax) of the NYC

(defined below), engaging in transactions

the general public, that garage or other

Administrative Code.

For taxable

in positions in property, the acquisition,

business will be considered a taxable unin-

years beginning in 1996 and there-

holding or disposition, other than in the

corporated business, provided, however,

after, unincorporated associations and

ordinary course of business, of interests

for taxable years beginning after 1995, if a

publicly traded partnerships taxable

in unincorporated entities also eligible

taxpayer operates a garage that is open to

as corporations for federal income tax

for this exemption, and any other activity

building tenants and the public, the opera-

purposes under IRC §7701 (a) (3) and

not constituting an unincorporated busi-

tion of that garage will not be considered a

§7704 are subject to the General

ness subject to the Unincorporated

taxable unincorporated business but only

Corporation

Tax

and

not

the

Business Tax.

to the extent of income from parking serv-

Unincorporated

Business

Tax.

ices provided at that garage to building

Property Defined. Property for this pur-

However, unincorporated entities

tenants on a monthly or longer-term basis

pose includes real and personal property,

that

were

subject

the

and only if the information required to

including property qualifying as invest-

Unincorporated Business Tax for

be filed with this return specified below

ment capital (see instructions for

tax years beginning in 1995 that

is provided with respect to that garage.

Schedule D of this form) and other stocks

elected to continue to be subject to

All other income from the operation of

and securities, notional principal con-

the Unincorporated Business Tax

that garage will be subject to the tax.

tracts, derivative financial instruments

for years after 1995 on a timely filed

and other positions in property but

The taxpayer must submit with this return

Unincorporated

Business

Tax

excluding property and positions in prop-

a statement containing the following for

return for the tax year beginning in

erty held by a dealer, and excluding debt

each garage or other similar facility that is

1996 continue to be subject to the

instruments acquired in the ordinary

operated for the benefit of tenants and that

Unincorporated Business Tax.

course of a trade or business and certain

is open to the general public:

any entity subject to the tax imposed

other property. See Admin. Code §11-

(1) the parking facility name;

by Title 11, Chapter 11 (Utility Tax)

502 (c) (1) (A).

(2) the parking facility address;

of the NYC Administrative Code

Notwithstanding anything to the con-

(except that vendors of utility serv-

(3) the license number of the facility if

trary, the receipt of $25,000 or less of

ices

are

subject

the

applicable;

gross receipts during the taxable year

Unincorporated Business Tax on

(4) the licensed capacity of the facility

Instructions For Form Nyc-202 - Unincorporated Business Tax Return - 2006 Page 2

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