Instructions For Form Nyc-202 - Unincorporated Business Tax Return

Instructions for Form NYC-202 2006

Page 8

“Depreciation for Property Placed in Service

- SUBTRACTIONS -

required under the instructions to Line 10(d) of

Outside New York After 1984 and Before

this schedule, use NYC 399Z to calculate the

LINE 13 - INCOME AND

1994”.

amount of the deduction that may be deducted

UNINCORPORATED BUSINESS TAX

for City purposes. The amount appearing in

In place of the federal depreciation deduction,

REFUNDS

column B of line 8 on Form NYC 399Z should

a depreciation deduction using pre-ACRS or

Enter any refund or credit for overpayment of

be included on this line. See “Highlights of

MACRS rules (IRC Section 167) is allowed.

any income tax to the extent included in com-

Recent

Tax

Law

Changes”,

Finance

puting part 1, line 8.

Enter on line 10d the ACRS depreciation

Memorandum 02-3, (revised) and Finance

deduction used in computing part 1, line 8.

Memorandum 06-1 dated October 12, 2006

LINE 14 - SALES AND USE TAX

(Refer to instructions for line 16.) (Attach

“Application of IRC 280F Limits to Sport

REFUNDS OR CREDITS

Form NYC-399 and/or NYC-399Z.)

Utility Vehicles”, for more information.

This item relates to the unincorporated busi-

Line 10e: Add back losses, interest, deprecia-

ness tax credit for sales and compensating use

LINE 17 - EXEMPT INCOME

tion and any other expenses deducted for fed-

taxes paid on certain machinery, equipment

Attach a schedule showing the nature and

eral income tax purposes directly or indirectly

and services. If the taxpayer received a refund

amount of exempt income, such as:

attributable to the holding, leasing or manag-

or credit in 2006 of any sales or compensating

interest income on United States obliga-

ing of real property (including any business

use tax for which it claimed an unincorporated

tions included in computing part 1, line 8

conducted at the property as an incidental

business tax credit in a prior tax period, the

service to tenants) or to the income or gain

interest or dividend income on bonds or

amount of the refund or credit must be added

therefrom, if such holding, leasing or manag-

securities of any United States authority,

to the Unincorporated Business Tax on line 18

ing

property

exempt

from

commission or instrumentality included

of Schedule A, and entered at Schedule B, part

Unincorporated Business Tax under NYC

in computing part 1, line 8, but exempt

2, line 14, as a subtraction modification.

Administrative Code Section 11-502(d) in tax-

from state or local income taxes under

There is no addback for current refunds of

able years beginning on or after July 1, 1994

United States law

or January 1, 1996, in the case of parking serv-

sales tax paid on purchases or use of electrici-

interest or dividend income on bonds or

ty or electric service used in the production of

ices rendered to tenants at a garage open to the

securities to the extent exempt from

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

certain tangible property for which the taxpay-

income tax under New York laws author-

er took a credit in a prior period under Adm.

paragraph 6.)

Enter on line 10e expense

izing the issuance of such bonds or secu-

Code §11-503(g).

deductions and losses reflected in Part 1, line

rities, but included in computing part 1,

8 attributable to exempt real estate activities.

line 8.

LINE 15 - FEDERAL

EMPLOYMENT CREDIT

LINE 11 - OTHER ADDITIONS

LINE 18 - DIVIDENDS

Describe in a separate schedule the nature and

Enter the portion of wages and salaries paid or

Enter 50% of dividends other than dividends

incurred for the taxable year for which a

amount of any additions, such as:

from stocks not meeting the holding period

deduction is not allowed pursuant to the provi-

requirement set forth in IRC Section 246(c).

interest income on state and local bonds

sions of Section 280C of the Internal Revenue

held in connection with the business

Code. (Attach federal Form 5884 or 8884 for

LINE 19 - REAL ESTATE

(other than on bonds of New York State

Liberty Zone business employees.)

SUBTRACTIONS

and its political subdivisions)

Subtract income or gain includible in gross

The New York Liberty Zone business employ-

interest or dividend income on bonds or

income for federal income tax purposes from

ee credit is only available for wages paid or

securities, held in connection with the

the holding, leasing or managing of real prop-

incurred during the current taxable year for

business, of any United States authority,

erty (including any business conducted at the

work performed in 2002 or 2003.

commission or instrumentality that the

property as an incidental service to tenants) if

laws of the United States exempt from

such holding, leasing or managing of property

LINE 16 - DEPRECIATION

federal income tax but not from state or

is not subject to Unincorporated Business Tax

ADJUSTMENT

local income taxes

under NYC Administrative Code Section 11-

In place of the disallowed ACRS deduction for

502(d) in taxable years beginning on or after

any amount deducted in computing part

certain property, line 10d, a depreciation

July 1, 1994 or January 1, 1996, in the case of

1, line 8, for salaries, wages, withdrawals

deduction computed by any method permitted

parking services rendered to tenants at a garage

or interest paid to the proprietor of the

under IRC Section 167 as in effect on

open to the public. (Refer to “Who is Subject

December 31, 1980, will be allowed. Enter on

unincorporated business

to the Tax”, paragraph 6.) Enter on line 19 the

line 16 the ACRS adjustment from Form

Add back royalty and interest payments

amount of income and gain reflected in Part 1,

NYC-399, Schedule C, line 8, column B.

made to related members as required by

line 8, attributable to exempt real estate activi-

(Attach Form NYC-399.) See instructions for

Ad. Code section 11-506(f).

See

ties.

line 10d and for Form NYC-399, see also

"Highlights of Recent Tax Law Changes

Finance Memorandum 99-4 “Depreciation for

for Unincorporated Businesses."

LINE 20 - OTHER SUBTRACTIONS

Property Placed in Service Outside New York

Describe in a separate schedule the nature and

any other additions required by Sections

After 1984 and Before 1994.”

amount of any subtractions, such as:

11-506, 11-507 and 11-509 of the NYC

If a taxpayer took the additional depreciation

Administrative Code. (Attach any appro-

the portion of gain included in computing

deduction on its federal return with respect to

priate schedules.)

part 1, line 8, from the sale or other dis-

“qualified property” OTHER THAN “qualified

position of property acquired before

Resurgence Zone property”, “qualified New

January 1, 1966, except:

York Liberty Zone property” and “qualified

New York Liberty Zone leasehold improve-

stock in trade of the taxpayer or

ments or SUVs for which an add-back was

other property of a kind that would

Instructions For Form Nyc-202 - Unincorporated Business Tax Return - 2006 Page 8

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