Instructions For Form Cr-A - Commercial Rent Tax Annual Return (Page 5 of 6) in pdf

Instructions for Form CR-A for the Period of June 1, 2009 to May 31, 2010 ONLY

Page 5

the vehicle is used for commercial pur-

of the base rent for such twelve-month pe-

pancy or use of such premises began and

poses by the tenant; and

riod or the base rent for the base year. see

ended. Compute the number of months oc-

Administrative Code §11-704.i.2.(b-2).

cupied or used to the nearest full month and

a completed Certificate of Assigned Space

For more information concerning eligibility

enter.

Use has been taken from the tenant.

requirements under the NYC Commercial

Revitalization Program, please e-mail:

LINE 11 - MONTHLY BASE RENT

LINE 5a - OTHER DEDUCTIONS

BEFORE RENT REDUCTION

nyc.gov/contactfinance

Enter here any amounts included in gross

Divide the sum of lines 7 and 5b by line 10

rent allowable as deductions for eligible tax-

to arrive at the average monthly base rent

payers and detail such deductions on an at-

before rent reduction.

SPECIAL NOTE FOR

tached schedule.

ELIGIBLE TAXPAYERS

LINE 12 - ANNUALIZED BASE RENT

The amount of the special reduction available

LINE 5b - COMMERCIAL REVITAL-

BEFORE RENT REDUCTION

to eligible taxpayers under the NYC Com-

IZATION PROGRAM SPECIAL RE-

Multiply line 11 by 12 (months). This is

mercial Revitalization Program (line 5b) IS

DUCTION. (SEE HIGHLIGHTS OF

your annualized base rent before rent reduc-

NOT taken into account and must be added to

NEW LEGISLATION)

tion.

the line 7 amount for the following purposes:

The NYC Commercial Revitalization Pro-

gram provides both Real Estate Tax and

LINES 13 AND 14 - RATE CLASS

annualizing the base rent (lines 10a-12),

Commercial Rent Tax benefits with respect

If lines 10a through 12 are not applicable,

to qualifying leases of premises in the Title

and if the sum of lines 7 and 5b is $249,999

determining whether the taxpayer is ex-

4 abatement zone, defined generally as the

or less, transfer the amount on line 9 (not

empt because its base rent is below

area in Manhattan bounded by Murray Street

the amount on line 7) to line 13. If the

$250,000 for periods beginning on or

and Frankfort Street on the north, and South

sum of lines 7 and 5b is $250,000 or more,

after June 1, 2001 (see "EXEMPTIONS"

Street, Battery Place and West Street on the

transfer the amount on line 9 (not the

on page 2 of these instructions),

east, south and west, respectively. Effective

amount on line 7) to line 14.

for qualifying leases signed between July 1,

determining the amount of credit avail-

2005 and June 30, 2013, the premises can be

If lines 10a through 12 are applicable, and

able (line 16), and

in eligible buildings located south of Canal

if the line 12 amount is $249,999 or less,

determining the applicable tax rate.

Street. Leases must be new, renewal or ex-

transfer the amount on line 9 (not the

However, once the applicable rate is de-

pansion leases with lease commencement

amount on line 12) to line 13. If the line

termined, enter the amount on line 9

dates beginning on or after April 1, 1997 and

12 amount is $250,000 or more, transfer

(after the special reduction) on line 13 or

must meet minimum lease term and expen-

the amount on line 9 (not the amount on

14, whichever is applicable.

diture requirements. Expanded benefits are

line 12) to line 14.

available for qualifying leases signed be-

tween July 1, 2005 and June 30, 2013.

Transfer the totals of lines 13 and 14 to

lines 1 and 2 respectively, page 1 of the

LINE 6 - TOTAL DEDUCTIONS

Under the original program, for leases with

form.

Add lines 3 through 5b and enter the total

an initial lease term of at least three years

deductions in line 6.

but less than five years, the special reduction

LINE 15 - TAX DUE BEFORE CREDIT

is available for up to 36 months. The reduc-

Multiply line 14 amounts by 6% and enter

LINE 7 - BASE RENT BEFORE

tion for the base year, i.e., the twelve month

the result on line 15. This is your tax due

THE 35% RENT REDUCTION

period commencing on the rent commence-

before the tax credit. The total of line 15

Subtract line 6 from line 2 to obtain the

ment date, is equal to the base rent. The spe-

should equal the amount calculated as tax

amount of your base rent before the 35%

cial reduction for the two twelve month

due on line 2, page 1 of the form.

rent reduction.

periods following the base year is equal to

2/3 and 1/3, respectively, of the lesser of the

LINE 16 - TAX CREDIT

LINE 8 - 35% RENT REDUCTION

base rent for that 12 month period or the

Compute your tax credit using the Tax

Multiply line 7 by 35% and enter here.

base rent for the base year. Where the lease

Credit Computation Worksheet provided at

is at least five years long, the special reduc-

the bottom of page 2 of the form and enter

LINE 9 - BASE RENT SUBJECT

tion is available for up to sixty months with

the result on line 16. Transfer the total of line

TO TAX

a similar decrease for the last two twelve

16 to line 3, page 1 of the form.

Subtract line 8 from line 7 to obtain the

month periods of that period. See Adminis-

amount of your base rent subject to tax.

trative Code §11-704.i.2.(b) and (b-1). Ef-

PAGE 1

fective August 30, 2005, for qualifying

Computation of Tax

ANNUALIZATION OF BASE RENT

leases (which do not include subleases) with

Complete lines 10a through 12 only if the

LINE A - PAYMENT

an initial or renewal lease term of at least

amount shown on line 7 does not represent

Enter the amount of payment remitted with

five years, signed between July 1, 2005 and

rent paid for a full twelve-month period.

June 30, 2013, the special reduction for the

this return in the space provided.

base year is equal to the base rent and for all

LINE 10a - MONTHS AT PREMISES

other 12 month periods is equal to the lesser

Enter the dates (month and year) that occu-

Instructions For Form Cr-A - Commercial Rent Tax Annual Return Page 5

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