Form It-203-A - Nonresident Business Allocation Schedule Page 2

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IT-203-A (8/13) (back)
Instructions
Line 2 Real property rented from others – The fair market value of real
General instructions
property rented by the business and to be included in line 2 is eight times
An allocation of business income must be made if you are a nonresident
the gross rent payable during the tax year for which the return is filed. Gross
and you carry on business both in and out of New York State. Business is
rent includes:
carried on out of the state if you have, maintain, operate, or occupy desk
space, an office, a shop, a store, a warehouse, a factory, an agency, or
– any amount payable for the use or possession of real property, or
any part of it, whether designated as a fixed sum of money or as a
other place where your business matters are systematically and regularly
percentage of sales, profits, or otherwise;
carried on outside New York State.
– any amount payable as additional rent or in lieu of rent, such as interest,
An occasional or isolated business transaction out of the state will not permit
taxes, insurance, repairs, or any other amount required to be paid by the
an allocation of income. In addition, if you have no regular place of business
terms of a lease or other agreement; and
out of the state, you may not allocate any income for business carried on
out of the state even though you or your representatives may travel out of
– a proportion of the cost of any improvement to real property made by
the state to perform duties connected with the trade or business and may
or on behalf of the business which reverts to the owner or lessor upon
make sales or perform services for out-of-state individuals or corporations.
termination of a lease or other arrangement. However, if a building is
erected on leased land by or on behalf of the business, the value of the
If you carry on business both in and out of New York State and maintain
building is determined in the same manner as if it were owned by the
accounts clearly showing income from the New York business, complete
business.
Schedule A of Form IT-203-A, and mark an X in the box for New York
income determined from books. Do not complete Schedule B.
Enter the value of all real property rented in Column A and the value of real
property rented that is located in New York State in Column B.
If the New York income of the business cannot be determined from your
books, you must determine income from business carried on both in and out
Line 3 Tangible personal property owned – Enter in Column A the average
of New York State in accordance with the statutory formula or an alternative
value of all tangible personal property owned by the business. Enter in
method approved by the New York State Commissioner of Taxation and
Column B the average value of tangible personal property located in New York
Finance. Complete Schedules A and B following the specific instructions on
State.
this page. Even though Schedule B may not fairly reflect the income from
Line 4 – Add lines 1, 2, and 3 in Column A and Column B, and enter the
New York and you use an alternative allocation method, you must complete
results at line 4.
Schedule B. Submit a detailed explanation of the alternative method used to
determine New York income, together with full details of any modifications
Divide the Column B amount by the Column A amount. Round the result
increasing or decreasing the amount of New York income computed by the
to the fourth decimal place and enter it as a percentage in Column C. For
alternate method. The modifications are described in the instructions for
example .3333 should be entered as 33.33.
Form IT-203.
Line 5 Payroll percentage – Enter wages, salaries, and other personal
The business allocation percentage or alternate method is not applied to
service compensation paid only to employees of the business. Do not
income from the rental of real property or gains or losses from the sale of
include payments to independent contractors, independent sales agents,
real property. The entire rental income from New York State real property
etc. Enter in Column A the total compensation paid to employees during
or gain from the sale of such property is taxable and the entire amount of
the tax year in connection with business operations carried on both in and
any loss is deductible. Rental income from real property located outside
out of New York State. Enter in Column B the amount paid in connection
New York State or gain from the sale of this property is not taxable. Any loss
with operations carried on in New York State. The compensation paid for
connected with such property is not deductible.
services is in connection with operations carried on in New York State if
the employee works in or travels out of an office or other place of business
The business allocation percentage is to be applied to Form IT-203 business
located in New York State.
income loss, farm income loss, or income from intangible personal property
(such as annuities, dividends, interest, and gains from the disposition of
Divide the Column B amount by the Column A amount. Round the result
intangible personal property) if such property is used in or connected with a
to the fourth decimal place and enter it as a percentage in Column C. For
business carried on both in and out of New York State.
example .3333 should be entered as 33.33.
If you carried on more than one business for which an allocation is required
Line 6 Gross income percentage – Enter in Column A total gross sales
on Form IT-203-A, prepare a separate Form IT-203-A for each business and
made or charges for services performed by the proprietor or by employees,
submit it with Form IT-203.
agents, agencies, or independent contractors of the business in and out
of New York State. Enter in Column B the portion of total gross sales
Specific instructions
or charges which represents sales made, or services performed, by or
through an agency in New York State. This includes sales made or services
Schedule A – In columns 1 and 2, list the exact locations at which you
performed by employees, agents, agencies, or independent contractors
carry on business both in and out of New York State. In column 3, describe
situated at, connected with, or sent out from offices of the business (or its
the places listed in columns 1 and 2 (e.g., branch office, agency, factory,
agencies) located in New York State. For example, if a salesman working
warehouse, etc.) and state whether you rent or own these places. If you
out of the New York office of the business covers New York, New Jersey
need additional space, submit a separate sheet(s) with your Form IT-203-A
and Pennsylvania, all sales made by him are to be allocated to New York
with the same format as Schedule A that clearly shows the information for
State and included in Column B on line 6.
columns 1 through 3.
Divide the Column B amount by the Column A amount. Round the result
Schedule B – Complete this schedule if business is carried on both in and
to the fourth decimal place and enter it as a percentage in Column C. For
out of New York State and you do not maintain accounts clearly reflecting
example .3333 should be entered as 33.33.
the New York operations of the business.
Line 7 Total of percentages – Add lines 4, 5, and 6 in Column C and
Property percentage – Complete lines 1, 2, 3, and 4 of Schedule B to
enter the total.
determine the average value of real and tangible personal property of the
business.
Line 8 Business allocation percentage – Divide line 7 by three (or by
the actual number of percentages if less than three). Round the result to the
Line 1 Real property owned – Enter in Column A the average value of all
fourth decimal place and enter the result as a percentage.
real property owned by the business. Enter in Column B the average value
of real property located in New York State.
Line 9 Allocation of business income to New York State – Multiply
each item of business income or loss reported on Form IT-203, Federal
The average value of the property is determined by (1) adding its adjusted
amount column, which is required to be allocated by the percentage
basis at the beginning of the tax year to its adjusted basis at the end of the
from line 8. Transfer the New York State amounts to the proper lines on
tax year and (2) dividing by two.
Form IT-203, New York State amount column.
233002130094

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