Instructions For Form Nyc-202 - Unincorporated Business Tax Return

Instructions for Form NYC-202 2006

Page 7

prior to January 1, 1966, and instructions for

City and you are electing to determine the

Line 10d: The Federal bonus depreciation

Schedule B, part 2, lines 10d and 16 relating to

New York City income from books and

allowed for "qualified property," as defined in

ACRS depreciation modifications.)

records of the business, enter in Part 2 only

IRC section 168(k) is not allowed for

those additions and subtractions that relate to

Unincorporated Business Tax purposes except

LINE 4 - NET AMOUNT OF RENTS

the New York City items reported on lines 1

for such deductions allowed with respect to

FROM REAL OR PERSONAL

through 5 of Schedule B, Part 1.

"qualified New York liberty zone property",

BUSINESS PROPERTY

"qualified New York liberty zone leasehold

Enter here the net amount of rental and royalty

- ADDITIONS -

improvements" and "qualified property"

income derived from real and personal busi-

placed in service in the Resurgence Zone (gen-

LINE 9 - INCOME AND

ness property, using federal figures. (Attach

erally the area in the borough of Manhattan

UNINCORPORATED BUSINESS TAXES

federal Schedule E.) If you are electing to

South of Houston Street and North of Canal

Enter the amount of income and unincorporat-

use the books and records method of alloca-

Street.)

For City tax purposes, depreciation

ed business taxes imposed by New York City,

tion, enter amounts allocable to New York

deductions for all other "qualified property"

New York State or any other taxing jurisdiction

City. Include the rental income from property

must be calculated as if the property was

that were deducted in computing Part 1, line 8.

even if not considered an unincorporated busi-

placed in service prior to September 11, 2001.

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

For tax years beginning on or after January 1,

LINE 10 - MODIFICATIONS RELAT-

paragraph 6.)

2004, other than for eligible farmers (for pur-

ING TO ITEMS OF TAX CREDIT AND

poses of the New York State farmers' school

LINE 5 - OTHER BUSINESS INCOME

DEDUCTION

tax credit), the amount allowed as a deduction

(OR LOSS)

Line 10a: The credit for sales tax paid on elec-

with respect to a sport utility vehicle that is not

Enter net amount of income or loss derived

tricity or electric service used in the produc-

a passenger automobile for purposes of section

from business activities or sources other than

tion of certain tangible property formerly

280F(d)(5) of the Internal Revenue Code is

those enumerated on lines 1, 3, and 4 of

allowed by Admin. Code §11-503(g) has been

limited to the amount allowed under section

Schedule B, part 1 and attach a schedule giving

repealed for purchases on or after November

280F of the Internal Revenue Code as if the

details of the items reported. Interest and divi-

1, 2000. No amount should be added back

vehicle were a passenger automobile as

dends from securities held in connection with

with respect to this credit.

defined in that section. For SUVs that are

the business or carried as business assets should

Purchases of machinery or equipment for

qualified property other than qualified

be reported here. If you are electing to use the

which a credit is allowed by Admin. Code §11-

Resurgence Zone property and other than New

books and records method of allocation,

503(d) were exempted from sales tax effective

York Liberty Zone property, the amount

enter amounts allocable to New York City.

December 1, 1989. Purchases of certain serv-

allowed as a deduction is calculated as of the

ices performed on machinery or equipment

If a net operating loss deduction is allowable in

date the SUV was actually placed in service

used in production for which

a credit is

2006 by reason of a carryover of a net operat-

and not as of September 10, 2001. On the dis-

allowed by Admin. Code §11-503(k) were

ing loss sustained in a prior year, do not enter

position of an SUV subject to the limitation,

exempted from sales tax effective September

the loss deduction here. Complete Schedule E.

the amount of any gain or loss included in

1, 1996.

Credits may be taken under these

income must be adjusted to reflect the limited

two provisions only if the sales tax payment

LINE 7 - INCOME OR GAIN FROM

deductions allowed for City purposes under

was made in the current year with respect to a

SALE OR EXCHANGE OF REAL

this provision. Enter on Schedule B, lines

purchase in a period when the applicable sales

PROPERTY

10(d) and 16 the appropriate adjustments from

tax was effective. In such cases, the sales tax

Rental income or loss from real property locat-

excluded or deducted for federal tax purposes

form NYC-399Z. See, Finance Memorandum

ed outside New York City and gain or loss on

should be added back. If you are claiming a

02-3

(revised)

"New York

City

Tax

disposition of real property located outside

credit pursuant to §11-503(d), a form NYC

Consequences of Certain Retroactive Federal

New York City are not considered for purpos-

114.5 for the year 1990 or a prior year should

and New York Tax Law Changes" and Finance

es of computing the unincorporated business

be used. If you are claiming a credit pursuant

Memorandum 06-1 dated October 12, 2006

tax. Therefore, to exclude this income, loss or

to §11-503(k), a form NYC 114.5 for the year

“Application of IRC 280F Limits to Sport

gain, subtract on line 7 the amount included on

2000 or a prior year should be used.

Utility Vehicles” for more information.

lines 3 and 4 if income or gain is reported, and

Line 10b: Taxpayers claiming the real estate

add this amount on line 7 if loss is reported.

The federal depreciation deduction computed

tax escalation credit or employment opportu-

Do not exclude the rental income from proper-

under the Accelerated Cost Recovery System

nity relocation costs or industrial business

ty located in New York City even if not con-

(ACRS) or the Modified Accelerated Cost

zone credits must enter the sum of the amounts

sidered an unincorporated business. (Refer to

Recovery System (MACRS) (IRC Section

shown on lines 4 and 5 of Form NYC-114.6.

“Who is Subject to the Tax”, paragraph 6.)

168) is not allowed for property placed in serv-

(See instructions for line 19.)

Line 10c: Enter any amounts deducted in

ice in New York State in taxable years begin-

computing part 1, line 8, for:

ning before January 1, 1985 (except recovery

PART 2 - NEW YORK CITY

property subject to the provisions of IRC

interest on money borrowed to pur-

MODIFICATIONS

Section 280-F).

chase or carry bonds or securities,

It may be necessary to make certain additions

the interest on which is exempt from

to or subtractions from the amount reported in

ACRS and MACRS may not be allowed for

the Unincorporated Business Tax;

part 1, line 8 to arrive at total income to be

property placed in service outside of New

reported on line 27. If any of the items listed

York State in taxable years beginning after

ii)

expenses that relate to exempt

in Schedule B, Part 2 is applicable, complete

1984 and before January 1, 1994 (except prop-

income or to property held for the

Part 2 showing the nature and amount of each

erty subject to the provisions of IRC Section

production of exempt income; and

item, and enter the combined total on line 21.

280-F). For additional information regarding

iii) amortization of bond premium on

If none of these apply, transfer the amount on

depreciation deductions for property placed in

any bond, the interest on which con-

line 8 to line 22 of Schedule B. If the business

service outside New York after 1984 and

stitutes exempt income.

is carried on both inside and outside New York

before 1994, see Finance Memorandum 99-4

Instructions For Form Nyc-202 - Unincorporated Business Tax Return - 2006 Page 7

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