Form Nyc-399z - Depreciation Adjustments For Certain Post 9/10/01 Property (Page 3 of 5) in pdf

Form NYC-399Z

Page 3

erty acquired to replace property damaged

property, before January 1, 2010), so long

2015 PATH Act, the bonus depreciation is

or destroyed in the attacks on the World

as no written binding contract for the ac-

50% for property placed in service during

Trade Center on September 11, 2001. For

quisition of the property existed prior to

2015-2017, 40% for property placed in

New York City tax purposes, property that

January 1, 2008. Section 1201 of Title I of

service during 2018, and 30% for property

qualifies as both "qualified property" and

Division B of the American Recovery and

placed in service during 2019. The first

"qualified New York Liberty Zone prop-

Reinvestment Act of 2009, Pub. L. No.

year depreciation for passenger automo-

erty" will be eligible for enhanced depre-

111-5, 123 Stat 115 (February 17, 2009)

biles under §280F(a)(1)(A) is increased by

ciation and IRC §179 benefits as "qualified

further amended IRC section 168(k) by ex-

$8,000 for the 2015 tax year and the 2016

New York Liberty Zone property."

tending the 50 percent additional first year

calendar tax year for certain qualified prop-

depreciation deduction to new property ac-

erty. However, in the case of a passenger

"Qualified Resurgence Zone property" is

quired before January 1, 2010 (in the case

automobile placed in service after Decem-

"qualified property" used substantially in

of certain property, before January 1,

ber 2016, the first year additional depreci-

the Resurgence Zone in connection with

2011.) Section 2022 of the Small Business

ation is phased down to $6,400 in the case

the active conduct of a trade or business

Jobs and Credit Act of 2010 Pub. L, No.

of an automobile placed in service during

where the original use began with the tax-

111-240, 124 Stat 2504 (September 27,

2018 and to $4,800 in the case of automo-

payer in the Resurgence Zone after Sep-

2010) (the “Small Business Jobs Act”) fur-

bile placed in service during 2019.

tember 10, 2001. The Resurgence Zone

ther amended IRC section 168(k) by ex-

(defined in sections 11-507(22), 11-

tending the 50 percent additional first year

However, as discussed above the Adminis-

602.8(m) and 11-641(p) of the Administra-

depreciation deduction to new property ac-

trative Code limits the depreciation for

tive Code) generally encompasses the area

quired before January 1, 2011 (in the case

“qualified property” other than “Qualified

in Manhattan between Canal Street and

of certain property, before January 1,

Resurgence Zone property” and “New

Houston Street.

2012.) Section 401 of the Tax Relief, Un-

York Liberty Zone property” to the deduc-

employment Insurance Reauthorization,

tion that would have been allowed for such

The New York City Administrative Code,

and Job Creation Act of 2010, Pub. L, No.

property had the property been acquired by

as amended pursuant to the authority

111-312, 124 Stat. 3296 (Dec. 17, 2010)

the taxpayer on September 10, 2001, and

granted under Part G of Chapter 93 of the

(“2010 Tax Relief Act”) extended and ex-

therefore, except for Qualified Resurgence

Laws of 2002, limits the depreciation de-

panded additional first- year depreciation

Zone property, as defined in the Adminis-

duction for "qualified property," other than

to equal 100% of the cost of qualified prop-

trative Code and “New York Liberty Zone

"qualified Resurgence Zone property," to

erty placed in service after Sept. 8, 2010

property”, the City has decoupled from the

the deduction that would have been al-

and before Jan. 1, 2012 (before Jan. 1,

federal bonus depreciation provision. The

lowed for such property under IRC §167

2013 for certain longer-lived and trans-

Administrative Code also requires appro-

had the property been acquired by the tax-

portation property): and 50% of the cost of

priate adjustments to the amount of any

payer on September 10, 2001, and there-

qualified property placed in service after

gain or loss included in entire net income

fore, not been eligible for the enhanced

Dec. 31, 2011 and before Jan. 1, 2013

or unincorporated business entire net in-

deductions allowed by the Act or the 2003

(after Dec. 31, 2012 and before Jan. 1,

come upon the disposition of any property

Act. The Administrative Code also re-

2014 for certain longer-lived and trans-

for which the federal and New York City

quires appropriate adjustments to the

portation property). Section 331 of the

depreciation deductions differ.

amount of any gain or loss included in en-

American Taxpayer Relief Act of 2012,

tire net income or unincorporated business

Pub. L. No. 112-240, 126 Stat. 2313 (Jan-

Special Provisions for Certain Sport

Utility Vehicles for Tax Periods Begin-

entire net income upon the disposition of

uary 2, 2013) (“2012 Taxpayer Relief Act”)

ning on or After January 1, 2004

any property for which the federal and

extended the 50 percent additional first

New York City depreciation deductions

year depreciation to qualified property ac-

differ. NOTE: Deductions for "qualified

quired after December 31, 2012 and before

Under Section 280F of the Internal Rev-

Resurgence Zone property," "qualified

January 1, 2014 (after December 31, 2013

enue Code, the federal depreciation deduc-

New York Liberty Zone property" and

and before January 1, 2015 for certain

tion under sections 167 and 168 of the

"qualified New York Liberty Zone lease-

longer-lived and transportation property).

Internal Revenue Code and the expense in

hold improvements" are not affected by the

Section 125 of the Tax Increase Prevention

lieu of depreciation deduction under sec-

above decoupling provisions other than for

Act of 2014, Pub. L. No.113-295, 128 Stat.

tion 179 of the Internal Revenue Code for

certain sport utility vehicles. The addi-

4010 (December 19, 2014) (”2014 Tax

certain passenger automobiles are gener-

tional first-year expense deductions under

Act”) extended the 50 additional first year

ally limited to the amounts provided in sec-

IRC §179 also are not affected other than

depreciation to qualified property acquired

tion 280F(a)(1) of the Internal Revenue

for certain sport utility vehicles.

See

after December 31, 2013 and before Janu-

Code. Congress passed legislation that

below.

ary 1, 2015 (after December 31, 2014 and

limits the amount deductible for certain

before January 1, 2016 for certain longer-

sport utility vehicles. That legislation does

Economic Stimulus Act of 2008 and

lived and transportation property).

not affect the modifications required for

Other Federal Legislation Effecting De-

City tax purposes described below.

preciation. Section 102 of the Economic

Section 143 of the Protecting Americans

Stimulus Act of 2008, Pub.L. No. 110-185,

from Tax Hikes Act of 2015, Pub. L. No.

For tax years beginning on or after January

122 Stat. 613 (Feb. 13, 2008) amended

114-113, Div Q (December 18, 2015)

1, 2004, in determining ENI of taxpayers,

IRC section 168(k). As amended, section

(“2015 PATH Act”) extended bonus de-

other than eligible farmers (for purposes of

168(k)(1)(A) provides a 50-percent addi-

preciation so that it is available for prop-

the New York State farmers' school tax

tional first year depreciation deduction for

erty acquired and placed in service during

credit), the amount allowed as a deduction

certain new property acquired by the tax-

2015-2019; bonus depreciation was ex-

for New York City purposes (for either de-

payer after December 31, 2007, and before

tended through 2020 for certain property

preciation or expense in lieu of deprecia-

January 1, 2009 (in the case of certain

with a longer production period. Under the

tion) with respect to a sport utility vehicle

Form Nyc-399z - Depreciation Adjustments For Certain Post 9/10/01 Property Page 3

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