Form Nyc-399z - Depreciation Adjustments For Certain Post 9/10/01 Property (Page 2 of 5) in pdf

Form NYC-399Z

Page 2

D i s p o s i t i o n a d j u s t m e n t

SCHEDULE B

Attach rider if necessary

For each item of property listed below, determine the difference between federal and New York City deductions used in the computation of federal

and New York City taxable income in prior years.

If federal deduction exceeds New York City deduction, subtract column E from column D and enter in column F.

If New York City deduction exceeds federal, subtract column D from column E and enter in column G.

Class of

Date Placed

Description

Total Federal

Total NYC

Adjustment

Property

in Service:

of Property

Depreciation Taken

(D minus E)

(E minus D)

(ACRS)

mm-dd-yy

2. Total excess federal deductions over NYC deductions (see instructions) ......................

3. Total excess NYC deductions over federal deductions (see instructions) ........................................................

Computation of adjustments to New York City income

SCHEDULE C

Federal

New York City

4. Enter amount from Schedule A1, line 1a, column F ................4.

5. Enter amount from Schedule A1, line 1a, column I .................5.

6a. Enter amount from Schedule A2, line 1b, Column F .............6a.

6b. Enter amount from Schedule A2, line 1b, Column I ..............6b.

7a. Enter amount from Schedule B, line 2 ...................................7a.

7b. Enter amount from Schedule B, line 3...................................7b.

8. Totals: column A, lines 4, 6a and 7b; column B, lines 5, 6b and 7a .8.

Enter the amount on line 8, column A, as an addition and the amount on line 8, column B, as a deduction on the applicable New York City return. (See instr.)

The New York Liberty Zone generally encompasses an

GENERAL INFORMATION

area of the borough of Manhattan below Canal Street.

"Qualified property" (as defined in IRC §168(k)(2)) gen-

The Job Creation and Worker Assistance Act of 2002,

erally includes certain personal property acquired after

P.L. 107-147, (the "Act") allows taxpayers an additional

September 10, 2001 and before January 1, 2005 and

30 percent depreciation deduction in the first year "qual-

placed in service after September 10, 2001 and before

ified property" is placed in service. The Act allows a

January 1, 2005 or 2006 in certain circumstances. The

similar additional 30 percent first-year depreciation de-

2003 Act modified the definition of “qualified property”

duction for "qualified New York Liberty Zone property"

to provide that to qualify for the 50% deduction, the

and allows "qualified New York Liberty Zone leasehold

property must be acquired after May 5, 2003 and before

improvements" to be depreciated over a five-year period

January 1, 2005 and placed into service before January 1,

using a straight-line method. The Act also allows an ad-

2005 or 2006 in certain circumstances. "Qualified New

ditional first-year expense deduction of up to $35,000 for

York Liberty Zone property" (as defined in IRC

"qualified New York Liberty Zone property" under IRC

§1400L(b)(2)) generally includes the same types of per-

§179 in addition to the otherwise allowable deduction.

sonal property if used substantially in the New York Lib-

The Jobs and Growth Tax Relief Reconciliation Act of

erty Zone in connection with the active conduct of a trade

2003, P.L. 108-27, (the “2003 Act”) increased the first

or business in the New York Liberty Zone where the orig-

year federal depreciation deduction for certain qualified

inal use began with the taxpayer in the Liberty Zone after

property to 50%.

September 10, 2001. It also includes certain real prop-

00621791

Form Nyc-399z - Depreciation Adjustments For Certain Post 9/10/01 Property Page 2

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