NEW YORK CITY DEPARTMENT OF FINANCE … · NEW YORK CITY DEPARTMENT OF FINANCE ... Part E of Chapter 59 of the Laws of 2013, § 10. ... formation, see “Captive Real

Combined General Corporation Tax Return for fiscal years beginning in 2014 or for calendar year 2014Instructions for Form NYC-3A, NYC-3A/B and NYC-3A/ATT Finance

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NEW YORK CITY DEPARTMENT OF FINANCE

l Revised Form NYC-3A and Newly Required Forms. Form NYC-3A had been substantially revised for tax years begin-ning in 2013. Form NYC-3L will no longer have to be completed for each member of the combined group. Instead, FormNYC-3A/ATT must now be completed for each member of the combined group. In addition, if there are more than twocorporations in the combined group, Form NYC-3A/B is now required. See Page 10 of the instructions for further details.

l Royalty payments. For tax years beginning on or after January 1, 2013, the Unincorporated Business Tax has been amendedto change the treatment of royalty payments to related members. Under prior law, taxpayers who made royalty paymentsto related entities were required to add back the amount of the payments to taxable income if those payments were deductedwhen calculating federal taxable income and if the royalty recipient, under certain conditions, could exclude the royaltyincome. Ad. Code section 11-602(8)(n), as amended, eliminates the income exclusion previously allowed to certain roy-alty recipients and increases to four the number of exceptions to the add-back requirement. Part E of Chapter 59 of theLaws of 2013, § 10. For more information, see “Royalty Payments to Related Members,” below.

l Local Law 67 of 2009 as amended, added section 11-604(21) to the Ad. Code, which provides a new biotechnology creditfor tax years 2010 through 2015 to certain qualified emerging technology companies for certain costs and expenses incurred.

l Section 2 of Chapter 201 of the Laws of 2009 provides for a phase-in of single factor allocation over 10 years beginningin 2009. For taxable years beginning in 2014, the business allocation factor will be a weighted average composed of13.5% of New York City property over total property, 13.5% of New York City wages over total wages and 73% of NewYork City receipts over total receipts.

l For taxable years beginning after 2010, the election to double-weight the gross income percentage for manufacturers is nolonger available. Note: The phase-in of single factor allocation is now more advantageous than double-weighting.

l Section 17 of Chapter 201 of the Laws of 2009 replaced the $300 fixed dollar minimum tax under the General Corpora-tion Tax (“GCT”) with a sliding scale fixed dollar minimum tax based on receipts allocated to New York City for tax yearsbeginning after 2008. See Ad Code § 11-604(1)(E)(a)(4) as amended.

l Mandatory Combination – A 2009 amendment now requires the mandatory combination of related GCT taxpayers with substantialintercorporate transactions, regardless of the transfer price used in the intercorporate transactions. See Ad Code § 11-605(4), asamended by section 4 of Chapter 201 of the Laws of 2009. For more information see the instructions for Form NYC-3A.

l The law was changed in 2009 to add back the Metropolitan Commuter Transportation Mobility Tax (“MTA Payroll Tax”)under Article 23 of the New York State Tax Law. GCT taxpayers must add back the MTA Payroll Tax to the extent it wasdeducted in computing federal taxable income. See Ad Code § 11-602(8)(b)(19) as added by section 17 of Part C of Chap-ter 25 of the Laws of 2009.

l Termination of GCT tax status under Gramm-Leach-Bliley transition rules - The law was amended in 2009 to provideconditions under which corporations subject to tax under the General Corporation Tax (GCT) as a result of the transitionrules relating to the Gramm-Leach-Bliley provisions will no longer be taxable under the GCT. If any of the conditions existor occur in a tax year beginning on or after January 1, 2009, such a corporation will be taxable under the Banking Corpo-ration Tax (BCT), rather than the GCT, as of the first day of the tax year in which the condition applied. AdministrativeCode section 11-640(m), as added by Chapter 201 of the Laws of 2009, section 32.

l Captive Real Estate Investment Trusts (REITs) and Regulated Investment Companies (RICs) - For tax years beginning on orafter January 1, 2009, the law has been changed concerning the tax treatment of “captive” REITs and RICs, that is, those wheremore than 50% of the voting stock is owned or controlled, directly or indirectly, by a single corporation. Under those changes,if a corporation subject to the GCT directly owns over 50% of the voting stock of a captive REIT or RIC or is the closest con-trolling shareholder of the voting stock of a captive REIT or RIC, the REIT or RIC may be subject to the GCT and requiredto be included in a GCT combined return with that corporation. Chapter 201, section 9 of the Laws of 2009. For more in-formation, see “Captive Real Estate Investment Trusts (REITs) and Regulated Investment Companies (RICs),” below.

l For purposes of the New York City Unincorporated Business Tax, General Corporation Tax and Banking Corporation Tax,the City has “decoupled” from the federal bonus depreciation allowed under the Economic Stimulus Act of 2008 and sub-sequent related legislation, except with respect to the depreciation deductions allowed with respect to “qualified New Yorkliberty zone property” and “qualified property” placed in service in the Resurgence Zone (generally the area in the bor-

Highlights of Recent Tax Law Changes for Corporations

GENERAL INFORMATIONS CORPORATIONSAn S corporation is subject to the GeneralCorporation Tax (GCT). Under certainlimited circumstances, an S corporationmay be permitted or required to file a com-bined return. See, e.g., Finance Memo-randum 99-3 for information regarding thetreatment of qualified subchapter S sub-sidiaries. Federal S corporation taxpayersmust now complete the form NYC-ATT-S-CORP, Calculation of Federal TaxableIncome for S Corporations and include itwith their GCT filing. For more informa-tion see Form NYC-ATT-S-CORP.

CORPORATION DEFINEDUnincorporated entities electing to betreated as associations taxable as corpora-tions for federal income tax purposes pur-suant to the “check-the-box” rules underIRC §7701(a)(3) are treated as corpora-tions for City tax purposes and are not sub-ject to the Unincorporated Business Tax.Eligible entities having a single owner dis-regarded as a separate entity under the“check-the-box” rules and treated as either

a sole proprietorship or a branch for fed-eral tax purposes will be similarly treatedfor City tax purposes. See Finance Mem-orandum 99-1 for additional information.

CORPORATIONS THAT ARE RE-QUIRED TO FILE A GCT RETURNSee the instructions to Form NYC-3L.

REQUIREMENTS FOR FILING ONA COMBINED BASIS

General RequirementsA group of corporations meeting the re-quirements set forth below must file acombined report. Filing or not filing ona combined basis is subject to review onaudit. This report will not be consideredcomplete unless all of the information re-quired is submitted.

A combined report is required if the re-quirements set forth in items A and Bbelow are met:

A- Related Corporation: A related corporation is: (1) Any corporation substantially all the

capital stock of which the taxpayerowns or controls either directly orindirectly;

(2) Any corporation which owns orcontrols directly or indirectly sub-stantially all the capital stock of thetaxpayer; and

(3) Any corporation the capital stock ofwhich is owned or controlled di-rectly or indirectly by interests thatown or control directly or indirectlysubstantially all the capital stock ofthe taxpayer.

“Substantially all” is ordinarily consid-ered the actual or beneficial ownership orcontrol of 80% or more of the votingstock of the issuing corporation through-out the taxable year.

B - Substantial IntercorporateTransactions:A GCT taxpayer must file on a combinedbasis with any related corporations de-scribed in item A, above, if there are sub-stantial intercorporate transactions among

Instructions for Form NYC-3A, NYC-3A/B and NYC-3A/ATT - 2014 Page 2

ough of Manhattan south of Houston Street and north of Canal Street). For City tax purposes, depreciation deductions forall other “qualified property” must be calculated as if the property was placed in service prior to September 11, 2001.Local Law 17 of 2002. See Form NYC-399Z and Finance Memorandum 14-1, “Application of IRC Section 280F Limitsto Sports Utility Vehicles”for more information.

l For tax years beginning after 2006, taxpayers with (1) gross income, as defined under §61 of the Internal Revenue Code,of less than $250,000, (2) a business allocation of 100%, and (3) no investment capital or income, or subsidiary capital orincome are exempt from having to determine the alternative tax on capital and the alternative tax on entire net income pluscompensation. See Section 11-604(1)(I) of the Administrative Code of the City of New York, as added by Chapter 491 ofthe Laws of 2007. If a taxpayer meets these criteria and is otherwise eligible to file Form NYC-4S, the taxpayer may beeligible to use Form NYC-4S-EZ. To determine if you can use Form NYC-4S-EZ, see the instructions for that form. Tax-payers who meet the three criteria noted above but are not eligible to file a Form NYC-4S-EZ must use Form NYC-3L butneed not calculate the alternative tax on capital and the alternative tax on entire net income plus compensation. For pur-poses of computing entire net income for City purposes, corporations, other than New York State S corporations, that meetthe three requirements listed above may elect to use the sum of New York State entire net income and any deductionstaken for the taxable year in computing federal taxable income for General Corporation Tax paid or accrued.

Payments may be made on the NYC Department of Finance website at nyc.gov/eservices, or viacheck or money order. If paying with check or money order, do not include these payments with yourNew York City return. Checks and money orders must be accompanied by payment voucher formNYC-200V and sent to the address on the voucher. Form NYC-200V must be postmarked by the re-turn due date to avoid late payment penalties and interest. See form NYC-200V for more information.

IMPORTANT INFORMATION CONCERNING FORM NYC-200V AND PAYMENT OF TAX DUE

the related corporations. It is not necessarythat there be substantial intercorporate trans-actions between any one corporation andevery other related corporation. It is neces-sary, however, that there be substantial in-tercorporate transactions between thetaxpayer and a related corporation or, col-lectively, a group of such related corpora-tions. In determining whether there aresubstantial intercorporate transactions, thecommissioner shall consider and evaluateall activities and transactions of the taxpayerand its related corporations. Activities andtransactions that will be considered include,but are not limited to: (1) manufacturing,acquiring goods or property, or performingservices, for related corporations; (2) sellinggoods acquired from related corporations;(3) financing sales of related corporations;(4) performing related customer servicesusing common facilities and employees forrelated corporations; (5) incurring expensesthat benefit, directly or indirectly, one ormore related corporations; and (6) transfer-ring assets, including such assets as ac-counts receivable, patents or trademarksfrom one or more related corporations.

Additional Circumstances For Com-bined FilingIn addition, the Department of Financemay require or permit a taxpayer to file acombined report with one or more relatedcorporations even if substantial intercor-porate transactions are absent under cir-cumstances in which a combined reportis necessary to properly reflect the tax-payer’s GCT liability because of inter-company transactions or someagreement, understanding, arrangement,or transaction.

ExceptionsAlien corporations, corporations that aretaxable under Title 11, Chapter 6, Sub-chapter 3 or under Title 11, Chapter 11(except a vendor of utility services that istaxable under both Chapter 11 and Sub-chapter 2 of Chapter 6), and insurancecorporations may not be included in acombined report.

No taxpayer may file a report on a com-bined basis covering any other corpora-tion where the taxpayer or the othercorporation allocates in accordance withthe special allocation provisions applica-

ble to aviation corporations or corpora-tions principally engaged in the operationof vessels and the taxpayer or other cor-poration does not allocate using the spe-cial allocation provisions.

Reporting Corporation In general, the parent corporation shouldact as the reporting corporation for thecombined group. The reporting corpora-tion must be the parent corporation if itis a member of the combined group. Aparent corporation is the corporation thatowns or controls, directly or indirectly,substantially all of the capital stock ofeach other member of the combinedgroup. If the parent corporation is notpart of the combined group, the com-bined group must then designate a mem-ber as its reporting corporation.

If the parent corporation is not part of thecombined group, or if substantially all ofthe capital stock of a parent corporationthat is a member of the combined groupis owned or controlled, directly or indi-rectly, by a person or corporation that isnot part of the combined group, enter thename of the non-member parent or thatperson or corporation and its EmployerIdentification Number (if any) in the boxentitled “Name of Parent of ControlledGroup” on page 1.

Royalty Payments to Related Mem-bersFor tax years beginning on or after Janu-ary 1, 2013, the General Corporation Taxhas been amended to change the treat-ment of royalty payments to relatedmembers. Under prior law, taxpayerswho made royalty payments to relatedentities were required to add back theamount of the payments to taxable in-come if they were deducted when calcu-lating federal taxable income. To avoiddouble taxation, if the royalty recipientwas also a New York taxpayer, the statuteallowed the recipient to exclude the roy-alty income if the related member addedback the deduction for the royalty pay-ment expense.

Ad. Code section 11-602(8)(n), asamended, eliminates the income exclu-sion previously allowed to certain royaltyrecipients. It also modifies the two pre-

vious exceptions to the add-back require-ment and adds two additional exceptions.Those four exceptions generally canapply in following situations (for addi-tional conditions that must be met, seethe Ad. Code sections indicated below):

l If all or part of the royalty payment arelated member received was thenpaid to an unrelated third party dur-ing the tax year, that portion of thepayment will be exempt if the trans-action giving rise to the original roy-alty payment to the related memberwas undertaken for a valid businesspurpose, and the related member wassubject to tax on the royalty paymentin this city or another city within theUnited States or a foreign nation orsome combination thereof (Ad. Codesection 11-602(8)(n)(2)(B)(i));

l If the taxpayer's related memberpaid an aggregate effective rate oftax on the royalty payment, to thiscity or another city within the UnitedStates or some combination thereof,that is not less than 80 percent of therate of tax that applied to the tax-payer under Ad. Code section 11-643.5 for the tax year (Ad. Codesection 11-602(8)(n)(2)(B)(ii));

l If the related member is organizedunder the laws of a foreign countrythat has a tax treaty with the UnitedStates, the related member’s incomefrom the transaction was taxed in suchcountry at an effective rate of tax atleast equal to that imposed by this city,and the transaction giving rise to theroyalty was undertaken for a validbusiness purpose and reflected anarm's length relationship. (Ad. Codesection 11-602(8)(n)(2)(B)(iii)); or

l If the taxpayer and the Department ofFinance agree to alternative adjust-ments that more appropriately reflectthe taxpayer's income. (Ad. Codesection 11-602(8)(n)(2)(B)(iv)).

The law as amended also defines the term“related member” by linking it to the def-inition in Internal Revenue Code section465(b)(3)(c), but substituting 50 percentfor the 10 percent ownership threshold.


TRANSITIONAL PROVISIONS RE-LATING TO THE ENACTMENT OFTHE GRAMM-LEACH-BLILEYACT OF 1999The enactment of the Gramm-Leach-Bliley Act of 1999 affected the types ofactivities that banks can conduct and,consequently, affected the qualificationof certain corporations as banking corpo-rations subject to the New York CityBanking Corporation Tax (“BCT”).

Existing Corporations Except for a banking corporation describedin paragraphs (1) through (8) of Ad. Codesection 11-640(a) (see Form NYC-1, In-structions, "Who Must File" items Athrough C), for taxable years beginningafter 1999 and before 2001, a corporationthat was in existence before January 1,2000, was taxable under the same tax (ei-ther GCT or NYC Banking CorporationTax (BCT)) as applied to it for its last tax-able year beginning before January 1,2000. For this purpose, a corporation wasconsidered to have been subject to a taxprior to 2000 if it was not a taxpayer butwas properly included in a combined re-port filed by another corporation under thattax. A corporation that was in existenceprior to 2000 but first became subject to taxafter 2000 is considered to have been sub-ject to whichever tax, GCT or BCT, wouldhave applied based on its activities had itbeen a taxpayer prior to 2000.

The transitional provisions relating to theGramm-Leach-Bliley Act of 1999 withrespect to existing corporations havebeen extended to apply to each tax yearfollowing 2000. As a result, existing cor-porations to which the transitional rulesapply remain required to be taxed underthe same tax, GCT or BCT, that appliedfor the preceding years. See Ad. Code§11-640(h)-(l) for more information.

The transition rules were most recentlyextended to require that a corporation thatwas in existence before January 1, 2012,be taxed in years beginning after 2011and before 2015 under the tax, either theGCT or BCT, that applied to it for the lastyear beginning before 2012. However,for years beginning after 2011, only cor-porations that meet the definition of abanking corporation in Ad. Code section

11-640(a) (see “Who Must File,” below)will be allowed to remain subject to theBank Tax under the transitional provi-sions. Ad. Code §11-640(l)(1) as lastamended by Ch. 59, Part R, §3 of theLaws of 2012.

Newly-Formed Corporations A corporation formed on or after January1, 2000, and before January 1, 2001, waspermitted to elect to be subject to eitherthe GCT or BCT for its first taxable yearbeginning after 1999 and before 2001provided either:

l the corporation was a financial sub-sidiary, or

l at least 65% of the corporation's vot-ing stock is owned or controlled, di-rectly or indirectly, by a financialholding company, and the corpora-tion is principally engaged in activi-ties described in sections 4(k)4 or4(k)5 of the Bank Holding CompanyAct of 1956, as amended, or de-scribed in regulations promulgatedunder that section.

A financial subsidiary is a corporationwhose voting stock is 65% or moreowned or controlled, directly or indi-rectly, by a banking corporation (includ-ing a corporation that has elected to besubject to the BCT under these transitionrules) described in paragraphs (1)through (3) of Ad. Code section 11-640(a) and described in 12 USCS section24a or section 46 of the Federal DepositInsurance Act.

A financial holding company is a corpo-ration that has filed with the Federal Re-serve Board a written declaration of itselection to be a financial holding com-pany under section 4(i) of the Bank Hold-ing Company Act of 1956, as amended,provided the Federal Reserve Board hasnot found that election to be ineffective.

An election by a newly-formed corpora-tion under this provision must have beenmade on or before the due date for filingits return for the applicable year, includ-ing extensions, and was made by filingthe return required under the appropriatetax. The election is irrevocable.

The transitional provisions relating to theGramm-Leach-Bliley Act of 1999 withrespect to newly-formed corporationshave been extended to apply to each taxyear following 2000. As a result, a newly-formed corporation is permitted to electto be taxed under either the GCT or BCTfor its first tax year if it meets the re-quirements described above. See Ad.Code §640(h)-(l) for more information.

The transition rules were most recentlyextended to permit a qualifying corpora-tion formed on or after January 1, 2012,and before January 1, 2015, to elect to betaxed under either the GCT or BCT forits first tax year beginning after 2011 andbefore 2015. Ad. Code §11-640(l)(2) aslast amended by Ch. 59, Part R, §3 of theLaws of 2012.

However, see the section entitled “Ter-mination of GCT Tax Status under Tran-sitional Provisions,” below, for changesto the law applicable to tax years begin-ning on or after January 1, 2009, and adescription of when a corporation will nolonger be taxable under the GCT.

Combined Filing under TransitionalProvisions

A bank holding company doing businessin the City that, during a taxable year be-ginning after 1999 and before 2015, reg-isters for the first time as a bank holdingcompany under the Bank Holding Com-pany Act of 1956, as amended, and electsto be a financial holding company, mayfile a combined report under the BCT forsuch year with one or more banking cor-porations doing business in the City and65% or more owned or controlled, di-rectly or indirectly, by that bank holdingcompany without seeking permissionfrom the Commissioner. In addition,such bank holding company may, with-out seeking the Commissioner's permis-sion: (i) include in a combined reportfiled for a subsequent year beginningafter 1999 and before 2015 any eligiblebanking corporation that, for the firsttime in such subsequent year, either isdoing business in the City or meets theabove ownership requirements; and (ii)eliminate from a combined report filedin any such subsequent year any corpo-


ration no longer meeting the require-ments for combination in such subse-quent year. Except as provided above,the permission of the Commissioner isrequired for any such bank holding com-pany to cease to file on a combinedbasis, elect to file on a combined basis ormake any changes to the composition ofthe group of corporations filing on acombined basis for any subsequent year.Ad Code §11-646(f)(2)(iv).

Termination of GCT Tax Status underTransitional ProvisionsThe law was changed in 2009 to provideconditions under which corporations sub-ject to tax under the GCT as a result ofthe transition rules relating to theGramm-Leach-Bliley provisions (bothexisting and newly-formed corporationsas described above) will no longer be tax-able under the GCT. If any of the condi-tions set out below exist or occur in a taxyear beginning on or after January 1,2009, such a corporation will be taxableunder the BCT, rather than the GCT, asof the first day of the tax year in whichthe condition applied:

l The corporation ceases to be a tax-payer under the GCT.

l The corporation becomes subject tothe fixed dollar minimum tax underAd. Code section 11-604(1)(E)(a)(4).

l The corporation has no wages or re-ceipts allocable to New York Citypursuant to Ad. Code section 11-604(3) or is otherwise inactive.However, this condition does notapply to a corporation that is en-gaged in the active conduct of atrade or business, or substantially allof the assets of which are stock andsecurities of corporations that are di-rectly or indirectly controlled by itand are engaged in the active con-duct of a trade or business.

l 65% or more of the voting stock ofthe corporation becomes owned orcontrolled directly by a corporationthat acquired the stock in a transac-tion (or series of related transac-tions) that qualifies as a purchasewithin the meaning of Internal Rev-

enue Code section 338(h)(3), unlessboth corporations, immediately be-fore the purchase, were members ofthe same affiliated group (as suchterm is defined in IRC section 1504without regard to the exclusions pro-vided for in 1504(b)).

l The corporation, in a transaction orseries of related transactions, ac-quires assets, whether by contribu-tion, purchase, or otherwise, havingan average value as determined inaccordance with Ad. Code section11-604(2) (or, if greater, a total taxbasis) in excess of 40% of the aver-age value (or, if greater, the total taxbasis) of all assets of the corporationimmediately before the acquisitionand, as a result of the acquisition, thecorporation is principally engaged ina business that is different from thebusiness immediately before the ac-quisition (provided that such differ-ent business is described in Ad.Code section 11-640(a)(9)(i) or (ii)).

See Ad. Code section 11-640(m).

Special Rules For Combining CaptiveReal Estate Investment Trusts (REITs)and Regulated Investment Companies(RICs).

Captive REITs and RICs.For tax years beginning on or after Janu-ary 1, 2009, the law has been amended toprovide that a captive REIT or RIC mustgenerally be included in a combined reportunder the General Corporation Tax (GCT)or Banking Corporation Tax (BCT).Under new Ad. Code 11-601(12), a REITor RIC is a captive REIT or RIC if morethan 50% of its voting stock is owned orcontrolled, directly or indirectly, by a sin-gle corporation. Any voting stock held ina segregated asset account of a life insur-ance corporation as described in InternalRevenue Code section 817 is not takeninto account for the purpose of determin-ing the percentage of stock ownership. Asexplained more below, if a corporationsubject to the GCT directly owns over50% of the voting stock of a captive REITor RIC or is the “closest controlling share-holder” of a captive REIT or RIC, then thecaptive REIT or RIC must be included ina combined report under the GCT with

that corporation. For these purposes, the“closest controlling stockholder” meansthe corporation: (a) that indirectly owns orcontrols over 50% of the voting stock of acaptive REIT or RIC; (b) is subject to taxunder the GCT or BCT or otherwise re-quired to be included in a combined reportor report under the GCT or BCT; and (c) isthe fewest tiers of corporations away in theownership structure from the captiveREIT or RIC.

If a captive REIT or RIC is required to beincluded in a combined report under theGCT, it will be subject to tax under theGCT. Ad. Code § 11-605(4)(a)(5). Notethat if a captive REIT or RIC is re-quired to be included in a combined re-port under the BCT, it will not besubject to tax under the GCT, and, as aresult, must file an NYC-1 report. Ad.Code section 11-640(d).

Requirement to be Included in a Com-bined Report under the GCT.

A captive REIT or RIC must be includedin a combined report under the GCTunder the following conditions:

(1) A captive REIT or RIC must be in-cluded in a combined report with thecorporation that directly owns orcontrols over 50% of the votingstock of the captive REIT or RIC ifthat corporation is subject to tax orrequired to be included in a com-bined report under the GCT.

(2) If over 50% of the voting stock of acaptive REIT or RIC is not directlyowned or controlled by a corpora-tion that is subject to tax or requiredto be included in a combined reportunder the GCT, then the captiveREIT or RIC must be included in acombined report with the corpora-tion that is the “closest controlling”stockholder of the captive REIT orRIC. If the corporation that is the“closest controlling” stockholder issubject to tax or required to be in-cluded in a combined report underthe GCT, then the captive REIT orRIC must be included in a combinedreport under the GCT.


(3) If the corporation that directly ownsor controls the voting stock of thecaptive REIT or captive RIC is de-scribed as a corporation that is notpermitted to make a combined re-port as provided in Ad. Code section11-605(4)(a)(1), (a)(2) or (a)(4),then the captive REIT or captiveRIC must determine the closest con-trolling shareholder under Ad. Codesection 11-605(4)(a)(5)(iii) to be in-cluded in a combined report withthat corporation. If the corporationthat is the closest controlling stock-holder of the captive REIT or cap-tive RIC is a corporation notpermitted to make a combined re-port, then that corporation isdeemed to not be in the ownershipstructure of the captive REIT or cap-tive RIC, and the closest controllingstockholder will be determinedunder Ad. Code section 11-605(4)(a)(5)(iii) without regard tothat corporation.

(4) If a captive REIT owns the stock ofa qualified REIT subsidiary (as de-fined in IRC section 856(i)(2)), thenthe qualified REIT subsidiary mustbe included in any combined reportrequired to be made by the captiveREIT that owns its stock.

(5) If a captive REIT or RIC is requiredby any of the conditions set outherein to be included in a combinedreport with another corporation, andthat other corporation is required tobe included in a combined reportwith another corporation under otherprovisions of Ad. Code 11-605(4)(a), the captive REIT or RICmust be included in that combinedreport with those corporations.

(6) If a captive REIT or RIC is not re-quired to be included in a combinedreport or report under the GCT (Ad.Code § 11-605(4)(a)(5)) or BCT(Ad. Code § 11-646(f), then the cor-poration will be required to file acombined report if it either meetsthe substantial intercorporate trans-actions requirement provided in Ad.Code 11-605(4)(a) or the inter-com-pany transactions or agreement, un-

derstanding, arrangement or trans-action requirement of Ad. Code §11-605(4)(a)(3) is satisfied andmore than 50% of the voting stockof the captive REIT or the captiveRIC and substantially all of the cap-ital stock of that other corporationare owned and controlled, directlyor indirectly, by the same corpora-tion.

Computation of tax for Captive REITsand RICs. In the case of a combined report under theGCT, the tax is measured by the combinedentire net income or combined capital ofall the corporations included in the report,including any captive REIT or RIC.

In the case of a captive REIT or RIC thatmust be included in a combined report,the entire net income of the captive REITmust be computed under Ad. Code § 11-603(7) and the entire net income of a cap-tive RIC must be computed under Ad.Code § 11-603(8).

In computing entire net income, the de-duction under the IRC for dividends paidby the captive REIT or RIC to any mem-ber of the affiliated group that includes thecorporation that directly or indirectly ownsover 50% of the voting stock of the cap-tive REIT or RIC must be added back tothe federal taxable income of the captiveREIT or RIC for tax years beginning on orafter January 1, 2009. The term affiliatedgroup is defined in IRC section 1504 with-out regard to the exceptions of 1504(b).

WHEN AND WHERE TO FILEThe due date for filing is on or beforeMarch 16, 2015 or, for fiscal year taxpay-ers, on or before the 15th day of the 3rdmonth following the close of the fiscal year.

Special short-period returns: If this is NOTa final return and your federal return cov-ered a period of less than 12 months as a re-sult of your joining or leaving a federalconsolidated group or as a result of a fed-eral IRC §338 election, this return gener-ally will be due on the due date for thefederal return and not on the date notedabove. Check the box on the front of the re-turn.

All returns, except refund returns:NYC Department of Finance P.O. BOX 5564Binghamton, NY 13902-5564

Remittances - Pay online with FormNYC-200V at nyc.gov/eservices, or Mailpayment and Form NYC-200V only to:NYC Department of FinanceP.O. Box 3646New York, NY 10008-3646

Returns claiming refunds:NYC Department of Finance P.O. Box 5563Binghamton , NY 13902-5563

AUTOMATIC EXTENSIONSAn automatic extension of six months forfiling this return will be allowed if, by theoriginal due date, the taxpayer files withthe Department of Finance an applicationfor automatic extension on Form NYC-EXT and pays the amount properly esti-mated as its tax. See the instructions forForm NYC-EXT for information regard-ing what constitutes a proper estimatedtax for this purpose. Failure to pay aproper estimated amount will result in adenial of the extension. A taxpayer witha valid six-month automatic extensionfiled on Form NYC-EXT may request upto two additional three-month extensionsby filing Form NYC-EXT.1. A separateForm NYC-EXT.1 must be filed for eachadditional three-month extension.

Mail Forms NYC-EXT and EXT.1 to theaddress indicated on those forms.

FINAL RETURNSIf a corporation ceases to do business inNew York City, the due date for filing afinal General Corporation Tax Return isthe 15th day after the due date of the ces-sation (Section 11-605 of the NYCAdmin. Code). Corporations may applyfor an automatic six-month extension forfiling a final return by filing Form NYC-EXT, Application for Automatic 6-MonthExtension of Time to File Business In-come Tax Return. Any tax due must bepaid with the final return or the exten-sion, whichever is filed earlier.


ACCESSING NYC TAX FORMS

By Computer - Download forms fromthe Finance website at nyc.gov/finance

By Phone - Order forms by calling 311.If calling from outside of the five NYCboroughs, please call 212-NEW-YORK(212-639-9675).

OTHER FORMS YOU MAY BEREQUIRED TO FILE

FORM NYC-EXT - Application ForAutomatic 6-Month Extension of Time toFile Business Income Tax Return. File iton or before the due date of the return.

FORM NYC-EXT.1 - Application forAdditional Extension is a request for anadditional three months of time to file areturn. A corporation with a valid six-month extension is limited to two addi-tional extensions.

FORM NYC-222 - Underpayment ofEstimated Tax by Corporations will helpa corporation determine if it has under-paid an estimated tax installment and, ifnecessary, compute the penalty due.

FORM NYC-245 - Activities Report ofCorporations must be filed by a corpora-tion that has an officer, employee, agentor representative in the City but disclaimsliability for the General Corporation Tax.

FORM NYC-399 - Schedule of NewYork City Depreciation Adjustments isused to compute the allowable New YorkCity depreciation deduction if a federalACRS or MACRS depreciation deduc-tion is claimed for certain property placedin service after December 31, 1980.

FORM NYC-399Z - Depreciation Ad-justments for Certain Post 9/10/01 Prop-erty may have to be filed by taxpayersclaiming depreciation deductions forcertain sport utility vehicles or "quali-fied property," other than "qualifiedNew York Liberty Zone property,""qualified New York Liberty Zoneleasehold improvements" and “qualifiedresurgence zone property” placed inservice after September 10, 2001, forfederal or New York State tax purposes.

See Finance Memorandum 14-1, “Ap-plication of IRC §280F Limits to SportsUtility Vehicles.”

FORM NYC-400 - Declaration of Esti-mated Tax by General Corporations mustbe filed by any corporation whose NewYork City tax liability can reasonably beexpected to exceed $1,000 for any calen-dar or fiscal tax year. Form NYC-400may also be used to make the quarterlyestimated tax payments.

FORM NYC-3360 - General Corpora-tion Tax Report of Change in Tax BaseMade by Internal Revenue Service and/orNew York State Department of Taxationand Finance is used for reporting adjust-ments in taxable income or other basis oftax resulting from an audit of your fed-eral corporate tax return and/or Stateaudit of your State corporate tax return.

FORM NYC-CR-A - Commercial RentTax Annual Return must be filed byevery tenant that rents premises for busi-ness purposes in Manhattan south of thecenter line of 96th Street and whose an-nual or annualized gross rent for anypremises is at least $200,000. (EffectiveJune 1, 2001.)

FORM NYC-RPT - Real Property Trans-fer Tax Return must be filed when the cor-poration acquires or disposes of an interestin real property, including a leasehold in-terest; when there is a partial or completeliquidation of the corporation that owns orleases real property; or when there is atransfer of a controlling economic interestin a corporation, partnership or trust thatowns or leases real property.

FORM NYC-ATT-S-CORP - Calcula-tion of federal Taxable Income for S Cor-porations must be included in the GCTfiling of every federal S corporation.

FORM NYC-NOLD-GCT - Net Oper-ating Loss Deduction Computation mustbe included in the GCT filing of everyGCT taxpayer claiming a net operatingloss deduction.

FORM NYC-3A/B – If more than onesubsidiary is included in the combined re-port complete the Subsidiary Detail

Spreadsheet which must be included inthe Combined GCT tax filing.

FORM NYC-3A/ATT – this schedulemust be completed by each member of thecombined group.

If you have delinquent taxes and you areinterested in the Voluntary Disclosureand Compliance Program, please go toour website at www.nyc.gov/finance.

ESTIMATED TAXIf the tax for the period following thatcovered by this return is expected to ex-ceed $1,000, a declaration of estimatedtax and installment payments are re-quired. Form NYC-400 is to be used forthis purpose. If the tax on this return ex-ceeds $1,000, Form NYC-400 will auto-matically be mailed to you.

If, after filing a declaration, your esti-mated tax substantially increases or de-creases as a result of a change in income,deduction or allocation, you must amendyour declaration on or before the nextdate for an installment payment. Theprocedure is as follows:

l Complete the amended schedule ofthe notice of estimated tax due.(This is your quarterly notice forpayment of estimated tax.)

l Mail the bottom portion of the noticealong with your check to:

NYC Department of Finance P.O. Box 3922New York, NY 10008-3922

If the amendment is made after the 15thday of the 9th month of the taxable year,any increase in tax must be paid with theamendment.

For more information regarding esti-mated tax payments and due dates, seeForm NYC-400.

PENALTY FOR UNDERSTATINGTAXIf there is a substantial understatement oftax (i.e., if the amount of the understate-ment exceeds the greater of 10% of thetax required to be shown on the return or


$5,000) for any taxable year, a penaltywill be imposed equal to 10% of theamount of the understated tax.

The amount on which you pay thepenalty can be reduced by subtractingany item for which (1) there is or wassubstantial authority for the way in whichthe item was treated on the return, or (2)there is adequate disclosure of the rele-vant facts affecting the item’s tax treat-ment on the return or in a statementattached to the return.

CHANGE OF BUSINESS INFOR-MATIONIf there have been any changes in yourbusiness name, identification number,billing or mailing address or telephonenumber, complete Form DOF-1, Changeof Business Information. You can obtainthis form by calling 311. If calling fromoutside of the five NYC boroughs,please call 212-NEW-YORK (212-639-9675). You can also logon to nyc.gov/fi-nance.

SIGNATUREThis report must be signed by an officerauthorized to certify that the statementscontained herein are true. If the taxpayeris a publicly-traded partnership or an-other unincorporated entity taxed as acorporation, this return must be signed bya person duly authorized to act on behalfof the taxpayer.

TAX PREPARERSAnyone who prepares a return for a feemust sign the return as a paid preparerand enter his or her Social Security Num-ber or PTIN. (See Finance Memorandum00-1.) Include the company or corpora-tion name and Employer IdentificationNumber, if applicable.

Preparer Authorization: If you wantto allow the Department of Finance todiscuss your return with the paid pre-parer who signed it, you must check the"Yes" box in the signature area of the re-turn. This authorization applies only tothe individual whose signature appearsin the "Preparer's Use Only" section ofyour return. It does not apply to the firm,if any, shown in that section. By check-ing the "Yes" box, you are authorizing

the Department of Finance to call thepreparer to answer any questions thatmay arise during the processing of yourreturn. Also, you are authorizing the pre-parer to:

l give the Department any informa-tion missing from your return,

l call the Department for informationabout the processing of your returnor the status of your refund or pay-ment(s), and

l respond to certain notices that youhave shared with the preparer aboutmath errors, offsets, and returnpreparation. The notices will not besent to the preparer.

You are not authorizing the preparer toreceive any refund check, bind you toanything (including any additional tax li-ability), or otherwise represent you be-fore the Department. The authorizationcannot be revoked; however, the author-ization will automatically expire no laterthan the due date (without regard to anyextensions) for filing next year's return.Failure to check the box will be deemeda denial of authority.

SPECIFIC INSTRUCTIONSSpecial Condition CodesAt the time this form is being published,there are no special condition codes for taxyear 2014. Check the Finance website forupdated special condition codes. If applica-ble, enter the two character code in the boxprovided on the form.

Special short-period returns: If this isNOT a final return and your Federal re-turn covered a period of less than 12months as a result of your joining or leav-ing a Federal consolidated group or as aresult of a Federal IRC §338 election, thisreturn generally will be due on the duedate for the Federal return and not on thedate noted on the return on page 2. Checkthe box on the front of the return.

Check the appropriate box on page 1 ofthis form if, on your federal return: (i) youreported bonus depreciation and/or a firstyear expense deduction under IRC §179for "qualified New York Liberty Zone

property," "qualified New York LibertyZone leasehold improvements," or "quali-fied Resurgence Zone property," regardlessof whether you are required to file formNYC-399Z or (ii) you replaced propertyinvoluntarily converted as a result of theattacks on the World Trade Center duringthe five (5) year extended replacement pe-riod. You must attach Federal forms 4562,4684 and 4797 to this return.

SCHEDULE AComputation of Tax

LINE A - PAYMENTAfter completing this form, enter theamount of your payment.

LINE 2 - ALLOCATED CAPITALThe tax based on allocated combinedcapital is limited to $1,000,000. Multi-ply the amount from Schedule M, line 8by the applicable percentage, but do notenter more than $1,000,000 in the right-hand column on line 2, Schedule A.

LINE 3 - ALTERNATIVE TAXEvery taxpayer, other than a REIT orRIC, must calculate its alternative tax andenter its computation on line 3. To com-pute the alternative tax, measured by en-tire net income plus compensation, youmust use the schedule on page 2 of FormNYC-3A. Professional corporations mustcalculate the alternative tax.

ADDITIONAL INFORMATION FORCOMPUTING THE ALTERNATIVETAX

ALTERNATIVE TAX SCHEDULELine 1 - Net Income. Enter the amounton Schedule B, line 19 or 20. If theamount entered on Schedule B, line 19 is0 because the amount that would havebeen entered on that line would havebeen as a loss (i.e., the amount on Sched-ule B, line 18 was greater than theamount on Schedule B, line 8), enter theamount of this loss on line 1.

Line 2 - Salaries. No portion of officerssalaries and other compensation is in-cluded in the alternative tax base. Notwith-standing the foregoing, include in thealternative tax computation 100% of allsalaries and compensation of stockholders


owning more than 5% of the corporation’sstock, as deducted for federal tax purposesand reported on Schedule F of Form NYC-3A/B or NYC-3A/ATT, regardless ofwhether such stockholders are also offi-cers. In determining whether a stockholderowns more than 5% of the issued capitalstock, include all classes of voting andnonvoting stock, issued and outstanding.

Line 3 - Enter on line 3 the sum of line 1and line 2.

Line 4 - Enter $40,000. If the return doesnot cover an entire year, the exclusionmust be prorated based on period coveredby the return.

Line 6 -The alternative tax measured by en-tire net income plus compensation is deter-mined by multiplying line 5 by 15 percent.

LINE 4 - MINIMUM TAXFor tax years beginning after 2008, the$300 fixed dollar minimum tax has beenreplaced with a sliding scale fixed dollarminimum tax based on business receiptsallocated to New York City. The slidingscale is the same as the one used to de-termine the fixed dollar minimum taxunder the New York State Franchise Tax,but the receipts used to determine thefixed dollar minimum tax are receipts al-located to the City instead of receipts al-located to New York State, as is doneunder the Franchise Tax. The amount ofCity business receipts for this purpose isthe same as the amount used for deter-mining the taxpayer’s business allocationpercentage. See Ad Code § 11-604(1)(E)(a)(4) as amended by Ch. 201,§ 17, of the Laws of 2009.

Enter the amount of New York City Re-ceipts for the reporting corporationfrom (Schedule H, column A, line 2g(A)) and the Minimum Tax amount forthe reporting corporation from the fol-lowing table. If 100% of your businessincome is to be allocated to the City,enter the total amount of your businessreceipts, which should be the same asthe amount you would have had to enteron (Schedule H, column A, line 2g(A))if you had been required to completethat line.

Table - Fixed dollar minimum taxFor a corporation with New York Cityreceipts of:Not more than $100,000:.................$25More than $100,000but not over $250,000:.....................$75More than $250,000but not over $500,000:...................$175More than $500,000but not over $1,000,000:................$500More than $1,000,000but not over $5,000,000:.............$1,500More than $5,000,000but not over $25,000,000:...........$3,500Over $25,000,000: ......................$5,000

Short periods - fixed dollar minimum taxCompute the New York City receipts forshort periods (tax periods of less than 12months) by dividing the amount of NewYork City receipts by the number ofmonths in the short period and multiply-ing the result by 12. The fixed dollarminimum tax may be reduced for shortperiods:

Period Reductionl Not more than 6 months..........50%l More than 6 months

but not more than 9 months.....25%l More than 9 months ...............None

CREDITS - GENERALComplete a separate Credit Form for thereporting corporation and any other mem-ber of the combined group, if applicable.The Total amount of each credit, i.e. thesum of the credits taken for each memberof the combined group, is placed onSchedule A, line 9, 10a, 10b, 11a, or 11b.

LINE 9 – CREDIT FROM FORMNYC- 9.7 Enter on line 9 the sum of credits against theGeneral Corporation tax for unincorporatedbusiness tax paid by partnerships fromwhich any corporation included in this re-turn receives a distributive share or guaran-teed payment that is included in calculatingGeneral Corporation Tax liability on eitherthe entire net income or income plus com-pensation base. (Attach Form NYC-9.7.)

LINE 10a – CREDITS FROM FORMNYC– 9.5Enter on this line the following creditsagainst the General Corporation Tax:1) Relocation and Employment Assis-

tance Program (REAP) credit (At-tach Form NYC-9.5.)

2) Sales and compensating use taxes(Refer to instructions on FormNYC-9.5 and attach form.)

NOTE: This credit may only be taken forsales tax paid in the current year for cer-tain purchases in certain prior periods.

LINE 10b - CREDITS FROMFORM NYC-9.8Enter on this line the sum of the creditsagainst the General Corporation Tax for thenew Lower Manhattan relocation and em-ployment assistance program. (AttachForm NYC-9.8.)

LINE 11a – CREDITS FROM FORMNYC-9.6Real estate tax escalation credit and em-ployment opportunity relocation costscredit and industrial business zone credit(Refer to instructions on Form NYC-9.6and attach form.)

LINE 11b – CREDITS FROM FORMNYC-9.10Enter on this line the NYC biotechnologycredit. (Attach Form NYC-9.10.)

LINE 13b - FIRST INSTALLMENTPAYMENTDo not use this line if an application forautomatic extension, Form NYC-EXT,has been filed. The payment of theamount shown at line 13 is required aspayment on account of estimated tax forthe 2015 calendar year, if a calendaryear taxpayer, or for the taxable year be-ginning in 2015, if a fiscal year tax-payer.

LINE 14 - SALES TAX ADDBACKThis line relates to the General Corpora-tion Tax credit for sales and compensatinguse taxes paid on certain machinery andequipment and/or certain services. If anyof the corporations included in this returnreceived a credit or refund of any suchsales or compensating use taxes during the


year covered by this return for which itclaimed a General Corporation Tax creditin a prior tax period, the amount of suchcredit or refund must be added back at line14. A corresponding adjustment is to bemade at line 14 on Schedule B.

LINE 16 - PREPAYMENTSEnter the sum from line H, PrepaymentSchedule of all estimated payments madefor this tax period, the payment made withthe extension request, if any, and both thecarryover credit and the first installmentrecorded on the prior tax period’s return.

LINE 19a- LATE PAYMENT - INTERESTIf the tax is not paid on or before the duedate (determined without regard to any ex-tension of time), interest must be paid onthe amount of the underpayment from thedue date to the date paid. For informationas to the applicable rate of interest, call311. If calling from outside of the fiveNYC boroughs, please call 212-NEW-YORK (212-639-9675) or logon tonyc.gov/finance.

LINE 19b - LATE PAYMENT OR LATEFILING/ADDITIONAL CHARGESa) A late filing penalty is assessed if you

fail to file this form when due, unlessthe failure is due to reasonable cause.For every month or partial month thatthis form is late, add to the tax (lessany payments made on or before thedue date) 5%, up to a total of 25%.

b) If this form is filed more than 60 dayslate, the above late filing penalty can-not be less than the lesser of (1) $100or (2) 100% of the amount requiredto be shown on the form (less anypayments made by the due date orcredits claimed on the return).

c) A late payment penalty is assessed ifyou fail to pay the tax shown on thisform by the prescribed filing date,unless the failure is due to reason-able cause. For every month or par-tial month that your payment is late,add to the tax (less any paymentsmade) 1/2%, up to a total of 25%.

d) The total of the additional charges in a)and c) may not exceed 5% for any onemonth except as provided for in b).

If you claim not to be liable for these ad-

ditional charges, attach a statement toyour return explaining the delay in filing,payment or both.

LINE 19c - PENALTY FOR UNDER-PAYMENT OF ESTIMATED TAXA penalty is imposed for failure to file adeclaration of estimated tax or for failureto pay each installment payment of esti-mated tax due. (For complete details, referto Form NYC-222, Underpayment of Esti-mated Tax by Corporations.) If you un-derpaid your estimated tax, use FormNYC-222 to compute the penalty. AttachForm NYC-222. If no penalty is due, enter“0” on line 19c. Form NYC-222 may beattached as a PDF if you are e-filing.

LINE 23 - TOTAL REMITTANCE DUEIf the amount on line 17 is greater thanzero or the amount on line 21 is less thanzero, enter on line 23 the sum of line 17and the amount, if any, by which line 20exceeds the amount on line 18.

LINE 25 - GROSS RECEIPTS ORSALESThe amount entered on line 25 should bethe sum of the gross receipts or sales lessreturns and allowances for each memberof the combined group.

LINE 28 - NEW YORK CITY RENTEnter the total rent deducted for federalpurposes for premises located in New YorkCity for each member of the combinedgroup. Rent includes consideration paid forthe use or occupancy of premises as well aspayments made to or on behalf of a land-lord for taxes, charges, insurance or otherexpenses normally payable by the landlordother than for the improvement, repair ormaintenance of the tenant's premises.

PREPAYMENTS SCHEDULEEnter the payment date and the amountof all prepayments made for this tax pe-riod. Include on Line G the paymentsmade by any of the subsidiaries. Attach arider detailing the payments.

For interest calculations and account in-formation, call 311. If calling from out-side of the five NYC boroughs, pleasecall 212-NEW-YORK (212-639-9675).You can also visit the Finance website atnyc.gov/finance

THE FOLLOWING LINEINSTRUCTIONS ARE FOR FORMSNYC-3A, NYC-3A/B AND NYC-3A/ATT.

Form NYC- 3A is the form on which thecombined tax is computed. In column A,enter the information for the reporting cor-poration. In column B, enter the total for allsubsidiaries from Form NYC-3A/B. If thegroup is comprised of only one subsidiary,enter the information for that subsidiary incolumn B and Item 3 of the Additional In-formation Required on page 10.

Columns A and B on Form NYC-3A arethen added together, and the subtotal isindicated in column C. Enter in columnD any intercorporate eliminations. Attacha rider of any intercorporate eliminationsfor each corporation in the combinedgroup. Subtract column D from thesubtotal in column C and enter the bal-ance in column E.

Form NYC- 3A/B provides a column foreach member in the group other than thereporting corporation. The columns areadded together and the totals are then car-ried to the subsidiary column B on FormNYC-3A. If there are only two corpora-tions included in the combined return,Form NYC-3A/B is not required. Ifmore than four corporations are includedin the combined return, attach multiplecopies of Form NYC-3A/B, pages 2, 4,and 6. Do not attach multiple copies ofpages 1, 3 and 5.

Form NYC-3A/ATT provides subsidiarycapital, investment capital, salaries andcompensation of stockholders and businesslocation information. Attach one FormNYC-3A/ATT for each corporation in thecombined group (including the reportingcorporation). For subsidiaries, the Totalcolumns from these schedules are carriedto Form NYC-3A/B, if Form NYC-3A/Bis required. Transfer the amounts to theschedules and lines on the Form NYC-3A/B as indicated. If there are only two cor-porations included in the combined return,the Total column may be carried directly tothe Total Subsidiaries column in the appro-priate schedule of Form NYC-3A. For thereporting corporation, the Total column iscarried directly to the column in the appro-priate schedule on Form NYC-3A.


SCHEDULE B(Entire Net Income)Form NYC-3A/B does not include linesfor those items that are computed on thecombined basis.

LINE 1 - FEDERAL TAXABLEINCOMEEnter your federal taxable income (be-fore net operating loss and special de-ductions) as required to be reported onyour federal tax return.

If you file federal Form 1120, use theamount from line 28.

If you file federal Form 1120-C, use theamount from line 25c.

If you file federal Form 1120-RIC, seeAdmin. Code section 11-603.8.

If you file federal Form 1120-REIT, seeAdmin. Code section 11-603.7.

If you are a member of a federal affiliatedgroup that files a consolidated return, andthe city combined group is the same as thefederal group or if all members of the citygroup are included in a larger federalgroup filing the consolidated return, attacha copy of the federal consolidated returnand the consolidating workpapers indicat-ing the separate taxable income of eachcorporation before elimination of inter-corporate transactions. If some membersof the state combined group are not in-cluded in the federal consolidated return,but instead file separately, send a copy ofthe federal consolidated return (with con-solidating workpapers) plus a completecopy of the separate federal return, as filedwith the IRS, for each corporation not in-cluded in the federal consolidated group.

S corporations and qualified subchap-ter S subsidiaries (QSSS) must file re-turns as ordinary corporations. FederalS corporation taxpayers included in acombined return must complete formNYC-ATT-S-CORP, Calculation of Fed-eral Taxable Income for S corporationsand include it with this Form.

NOTE: The charitable contribution de-duction from federal Form 1120S, Sched-ule K, line 12a may not exceed 10% of

the sum of lines 1 through 12d (otherthan line 12a) of Schedule K.

LINE 2 - NONTAXABLE INTERESTInclude all interest received or accruedwhich was not taxable on your federalincome tax return.

LINES 3 AND 4 - SUBSIDIARYCAPITALA subsidiary is a corporation which iscontrolled by the taxpayer by reason ofthe taxpayer’s ownership of more than50% of the total number of shares of thecorporation’s voting capital stock, issuedand outstanding. The term “subsidiarycapital” means all investments in thestock of subsidiary corporations, plus allindebtedness from subsidiary corpora-tions (other than accounts receivable ac-quired in the ordinary course of businessfor services rendered or from sales ofproperty held primarily for sale to cus-tomers), whether or not evidenced bybonds or other written instruments, onwhich interest is not claimed and de-ducted by the subsidiary for purposes oftaxation under Title 11, Chapter 6, Sub-chapters 2 and 3 of the Admin. Code.

If you have a subsidiary, complete lines 3and 4, and attach a list of all items in-cluded. You will also have to completeSchedule C. If you do not have a sub-sidiary, enter “0” on lines 3 and 4.

On line 3, enter total of amounts, includinginterest expense, deducted in computingfederal taxable income that are directly at-tributable to subsidiary capital or to in-come, gains or losses from subsidiarycapital. Include capital losses from salesor exchanges of subsidiary capital, allother losses, bad debts and any carryingcharges attributable to subsidiary capital.

On line 4, enter all amounts, including in-terest, that are indirectly attributable tosubsidiary capital or to income, gains orlosses from subsidiary capital.

For more information, see also Statementof Audit Procedure GCT-2008-04, Non-interest Expense Attribution, April 9,2008, available on the Department's web-site (nyc.gov/finance).

LINE 5 - STATE AND LOCALBUSINESS TAXESOn line 5a enter the amount deducted onyour federal return for business taxespaid or accrued to any state, any politicalsubdivision of a state or to the District ofColumbia if they are on or measured byprofits or income or include profits or in-come as a measure of tax, including taxesexpressly in lieu of any of the foregoingtaxes. Include the New York State Met-ropolitan Transportation Business Taxsurcharge and the MTA Payroll Tax (NewYork State Tax Law, Art. 23).

Attach a rider listing each locality and theamount of all those taxes deducted onyour federal return.

On line 5b, enter the amount of NewYork City General Corporation Tax andBanking Corporation Tax deducted onyour federal return.

LINES 6a, 6b, 6c and 6d -NEW YORK CITY ADJUSTMENTSa) The credit for sales tax paid on elec-

tricity or electric service used in theproduction of certain tangible prop-erty formerly allowed by Admin.Code §11-604.15 has been repealedfor purchases on or after November1, 2000. No amount should be addedback with respect to this credit.

Purchases of machinery or equipmentfor which a credit is allowed by Admin.Code §11-604.12 were exempted fromsales tax effective December 1, 1989.Purchases of certain services performedon machinery or equipment used in pro-duction for which a credit is allowed byAdmin. Code §11-604.17-a were ex-empted from sales tax effective Sep-tember 1, 1996. Credits may be takenunder these two provisions only if thesales tax payment was made in the cur-rent year with respect to a purchase ina period when the applicable sales taxwas effective. In such case, the sales taxexcluded or deducted for federal taxpurposes should be added back. If youare claiming a credit pursuant to §11-604.12, a form NYC-9.5 for the year1990 or a prior year should be used. Ifyou are claiming a credit pursuant to§11-604.17-a, a form NYC-9.5 for the


year 2000 or a prior year should be used.

b & c) For the reporting corporation, enterthe amount to NYC-3A, column A.For the other members of the com-bined group, enter amount on FormNYC-3A/B and the sum on NYC-3A column B. If there is only oneother member of the combinedgroup, enter the amount for that cor-poration on the NYC-3A, column B.Taxpayers claiming the real estatetax escalation credit and/or the em-ployment opportunity relocationcosts credit or the industrial busi-ness zone credit must enter on lines6(c) and 6(b), respectively, theamounts shown on lines 4 and 5, re-spectively, of Part II of Form NYC-9.6.

d) The federal bonus depreciation al-lowed for "qualified property", as de-fined in the Job Creation and WorkerAssistance Act of 2002 is not allowedfor General Corporation Tax purposesexcept for such deductions allowedwith respect to "qualified New Yorkliberty zone property", "qualified NewYork liberty zone leasehold improve-ments" and "qualified property"placed in service in the ResurgenceZone (generally the area in the bor-ough of Manhattan south of HoustonStreet and north of Canal Street). ForCity tax purposes, depreciation de-ductions for all other "qualified prop-erty" must be calculated as if theproperty was placed in service prior toSeptember 11, 2001.

Economic Stimulus Act of 2008 andOther Federal Legislation Effecting De-preciation. Section 102 of the EconomicStimulus Act of 2008, Pub.L. No. 110-185,122 Stat. 613 (Feb. 13, 2008) amended IRCsection 168(k). As amended, section168(k)(1)(A) provides a 50-percent addi-tional first year depreciation deduction forcertain new property acquired by the tax-payer after December 31, 2007, and beforeJanuary 1, 2009 (in the case of certain prop-erty, before January 1, 2010), so long as nowritten binding contract for the acquisitionof the property existed prior to January 1,2008. Section 1201 of Title I of Division Bof the American Recovery and Reinvest-

ment Act of 2009, Pub. L. No. 111- 5, 123Stat 115 (February 17, 2009) furtheramended IRC section 168(k) by extendingthe 50 percent additional first year depreci-ation deduction to new property acquiredbefore January 1, 2010 (in the case of cer-tain property, before January 1, 2011). Sec-tion 2022 of the Small Business Jobs andCredit Act of 2010, Pub. L. No. 111- 240,124 Stat. 2504 (September 27, 2010) fur-ther amended IRC section 168(k) by ex-tending the 50 percent additional first yeardepreciation deduction to new property ac-quired before January 1, 2011 (in the caseof certain property, before January 1, 2012.)Section 401 of the Tax Relief, Unemploy-ment Insurance Reauthorization, and JobCreation Act of 2010, Pub. L. No. 111-312,124 Stat. 3296 (Dec. 17, 2010) (“2010 TaxRelief Act”) extended and expanded addi-tional first-year depreciation to equal 100%of the cost of qualified property placed inservice after Sept. 8, 2010 and before Jan.1, 2012 (before Jan. 1, 2013 for certainlonger-lived and transportation property);and 50% of the cost of qualified propertyplaced in service after Dec. 31, 2011 andbefore Jan. 1, 2013 (after Dec. 31, 2012 andbefore Jan. 1, 2014 for certain longer-livedand transportation property). Section 331of the American Taxpayer Relief Act of2012, Pub. L. No. 112-240, 126 Stat. 2313(January 2, 2013) (“2012 Tax Relief Act”)extended the 50 percent additional first yeardepreciation to qualified property acquiredafter December 31, 2012 and before Janu-ary 1, 2014 (after December 31, 2013 andbefore January 1, 2015 for certain longer-lived and transportation property). Section125 of the Tax Increase Prevention Act of2014, Pub. L. No. 113-295, 128 Stat. 4010(December 19, 2014) (”2014 Tax Act”) ex-tended the 50 percent additional first yeardepreciation to qualified property acquiredafter December 31, 2013 and before Janu-ary 1, 2015 (after December 31, 2014 andbefore January 1, 2016 for certain longer-lived and transportation property). Conse-quently, the years in which the first yeardepreciation for passenger automobilesunder §280F(a)(1)(A) is increased by$8,000 have also been extended. However,as discussed above the AdministrativeCode limits the depreciation for “qualifiedproperty” other than “Qualified ResurgenceZone property” and “New York LibertyZone property” to the deduction that would

have been allowed for such property hadthe property been acquired by the taxpayeron September 10, 2001, and therefore, ex-cept for Qualified Resurgence Zone prop-erty, as defined in the Administrative Codeand “New York Liberty Zone property,” theCity has decoupled from the federal bonusdepreciation provision. The AdministrativeCode also requires appropriate adjustmentsto the amount of any gain or loss includedin entire net income or unincorporated busi-ness entire net income upon the dispositionof any property for which the federal andNew York City depreciation deductions dif-fer. Use Form NYC-399Z for this calcula-tion. For tax years beginning on or afterJanuary 1, 2004, other than for eligiblefarmers (for purposes of the New YorkState farmers' school tax credit), the amountallowed as a deduction with respect to asport utility vehicle that is not a passengerautomobile for purposes of section280F(d)(5) of the Internal Revenue Code islimited to the amount allowed under sec-tion 280F of the Internal Revenue Code asif the vehicle were a passenger automobileas defined in that section. For SUVs thatare qualified property other than qualifiedResurgence Zone property and other thanNew York Liberty Zone property, theamount allowed as a deduction is calculatedas of the date the SUV was actually placedin service and not as of September 10,2001. Note that for the 2014 tax year forGeneral Corporation Tax purposes:

l An SUV cannot qualify as eitherNew York Resurgence Zone Propertyor as New York Liberty Zone prop-erty. See Administrative Code sec-tion 11-602(8)(o).

l An SUV cannot qualify for the addi-tional first year depreciation availableunder the Economic Stimulus Act of2008 and the subsequent related fed-eral legislation described above.

On the disposition of an SUV subjectto the limitation, the amount of anygain or loss included in income mustbe adjusted to reflect the limited de-ductions allowed for City purposesunder this provision. Enter on Sched-ule B, lines 6(d) and 16 the appropri-ate adjustments from formNYC-399Z. See Finance Memoran-


dum 14-1, “Application of IRC §280FLimits to Sports Utility Vehicles.”

The federal depreciation deductioncomputed under the Accelerated CostRecovery System or Modified Accel-erated Cost Recovery System (IRCSection 168) is not allowed for thefollowing types of property:

l property placed in service in New YorkState in taxable years beginning beforeJanuary 1, 1985 (except recovery prop-erty subject to the provisions of Inter-nal Revenue Code Section 280-F)

l property of a taxpayer principally en-gaged in the conduct of an aviation,steamboat, ferry, or navigation busi-ness, or two or more such businesseswhich is placed in service in taxableyears beginning after December 31,1988, and before January 1, 1994

In place of the federal depreciation deduc-tion, a depreciation deduction using pre-ACRS or MACRS rules (IRC Section 167)is allowed. Enter on line 6d the ACRS ad-justment from Form NYC-399, ScheduleC, line 8, Column A. Enter on line 16 theACRS adjustment from Form NYC-399,Schedule C, line 8, Column B. ACRS andMACRS may be available for propertyplaced in service outside New York in yearsbeginning after 1984 and before 1994. SeeFinance Memorandum 99-4 “Depreciationfor Property Placed in Service Outside NewYork After 1984 and Before 1994.”

LINE 7a - PAYMENT FOR USEOF INTANGIBLESAdd back payments for the use of intan-gibles made to related members as re-quired by Ad. Code section 11-602.8(n).See Royalty Payments to Related Mem-bers, p. 3, above.

LINE 7b - DOMESTIC PRODUC-TION ACTIVITIES DEDUCTIONAdd back any amounts deducted undersection 199 of the Internal Revenue Code(Domestic Production Activities Deduc-tion). Please attach federal Form 8903.

LINE 7c - OTHER ADDITIONS a) Effective for taxable years beginning

on or after January 1, 1982, the New

York City Admin. Code wasamended to nullify the effects of fed-eral “safe harbor leases” upon NewYork City taxable income (Section11-602.8(a)(8) and (9) of the Admin.Code). This applies to agreementsentered into prior to January 1, 1984.

Any amount included in the computa-tion of federal taxable income solelyas a result of an election made underIRC Section 168(f)(8) must be re-moved when computing New YorkCity taxable income. Any amount ex-cluded in the computation of federaltaxable income solely as a result of anelection made under IRC Section168(f)(8) must be included when com-puting New York City taxable income.

Exempt from these adjustments areleases for qualified mass commutingvehicles and property of a taxpayer,subject to the General CorporationTax, principally engaged in the con-duct of an aviation, steamboat, ferryor navigation business, or two ormore such businesses, which isplaced in service before taxable yearsbeginning in 1989.

Enter the appropriate additions anddeductions on lines 7 and 17, respec-tively, and attach a rider to show the“safe harbor” adjustments to NewYork City taxable income.

b) Foreign taxes paid or accrued that arededucted from gross income to deter-mine federal taxable income must beadded to entire net income. A foreigntax credit may not be used as a de-duction when computing NYC entirenet income.

c) Any “windfall profit” tax deducted incomputing federal income must beadded back when computing NYCentire net income.

d) If the taxpayer deducted on its federalreturn interest paid to a corporatestockholder owning more than 50%of its issued and outstanding stock,that corporate shareholder may notexclude that interest from its NYCentire net income as income from

subsidiary capital. (See instructionsfor lines 3, 4 and 9.) To enable amore than 50% corporate shareholderto treat any such interest as excludi-ble income from subsidiary capital,such interest should be added back online 7, Column E, of this return incomputing NYC entire net income.

e) In the case of a taxpayer organizedoutside the United States, all incomefrom sources outside the UnitedStates, less all allowable deductionsattributable thereto, that was not takeninto account in computing federal tax-able income must be added back incomputing NYC entire net income.

LINES 9a, 9b AND 9c - INCOMEFROM SUBSIDIARY CAPITALEnter on line 9a, Column E, dividendsfrom subsidiary capital that was includedas part of federal taxable income. Com-plete Schedule C.

Enter on line 9b, Column E, interest fromsubsidiary capital that was included infederal taxable income.

Enter on line 9c, Column E, capital gainsand other income and gain from sub-sidiary capital that was included as partof federal taxable income. CompleteSchedule C.

Do not enter on line 9b interest for whichthe payor subsidiary claimed a deduction.(See instructions for Schedule B, lines 3and 4, above for the definition of sub-sidiary capital.)

LINE 10 - NONSUBSIDIARYDIVIDENDSEnter 50% of dividends received fromnonsubsidiary corporations. Do not in-clude the following: (1) “gross-up” divi-dends pursuant to IRS Section 78, and (2)dividends from stocks not meeting theholding period requirement set forth inIRC Section 246(c). Regulated invest-ment companies and real estate investmenttrusts do not qualify for this deduction.

LINE 11 - NET OPERATING LOSSTaxpayers claiming a deduction for a NetOperating Loss must now complete the formNYC-NOLD-GCT, Net Operating Loss De-duction Computation. Attach a copy of the


completed Form NYC-NOLD-GCT.

Enter New York City net operating losscarryforward from prior years. The fol-lowing rules apply to net operating losses.

1) A deduction may only be claimed fornet operating losses sustained in taxableyears during all or part of which the cor-poration was subject to the GeneralCorporation Tax. New York City al-lows net operating losses to be used inthe same manner as provided by IRCSection 172. However, the amount ofany federal loss must be adjusted in ac-cordance with Section 11-602.8(f) ofthe Admin. Code. Regulated investmentcompanies and real estate investmenttrusts do not qualify for this deduction.

2) The deduction of a net operating losscarryforward from prior years maynot exceed, and is limited to, theamount of the current year’s federaltaxable income. A net operating lossmay not be claimed as a deduction ifSchedule B, line 1 reflects a loss.

3) The deduction shall not exceed the de-duction that would have been allowedif the taxpayer had not made an elec-tion to be an S corporation under therules of the Internal Revenue Code orhad not elected to be included in agroup reporting on a consolidatedbasis for federal income tax purposes.

4) The New York City net operating lossdeduction taken for City purposes foreach year may not exceed the deductionallowable for that year for federal in-come tax purposes calculated as if thetaxpayer had elected to relinquish thecarryback period except with respect tothe first $10,000 of each year’s loss. Thecarryback period for General Corpora-tion Tax purposes corresponds to thefederal carryback period. If the taxpayerelects to use a 2-year carryback periodfor federal purposes, the same carrybackperiod applies for City purposes. If thetaxpayer elects to relinquish the entirecarryback period for federal purposes,then the taxpayer may not carry backany amount for City purposes.

5) Losses which are not permitted to becarried back may generally be carried

forward and used to offset income forthe period permitted for federal taxpurposes, generally, 20 years subse-quent to the loss year for losses in-curred in taxable years beginningafter August 5, 1997.

6) Corporations principally engaged inthe conduct of an aviation, steam-boat, ferry or navigation business ortwo or more of such businesses arepermitted to claim a net operatingloss deduction in the same manner asother corporations.

These corporations are allowed tocarry forward any net operating lossesor a proportionate part of a net operat-ing loss sustained during the federaltaxable period(s) covering the years1985 through 1988, provided the cor-poration was taxable under Title 11,Chapter 6, Subchapter 4 of the Admin.Code (Transportation CorporationTax) for the calendar years 1985through and including 1988. The netoperating loss must be computed as if:

a) the corporation had been subject totaxation under Subchapter 2 (GeneralCorporation Tax) during the period(s)the loss was sustained,

b) the loss was sustained in 1988, and

c) the taxpayer had elected to relinquishthe entire carryback period underIRC Section 172.

For special rules relating to acquisi-tions, mergers or consolidations in-volving corporations principallyengaged in the conduct of aviation,steamboat, ferry or navigation busi-ness, refer to Section 77b of Chapter241 of the Laws of 1989.

7) Corporations reporting both businessand investment income must com-plete line 22 of this schedule to ap-portion any net operating lossbetween business income and invest-ment income.

CARRYBACK LOSSESIf the amount on line 18 is greater than theamount on line 8 so that the entry on line19 would be a loss, a request to carry it

back as a net operating loss deduction inany prior year must be made separately onan amended return. Do not attach or mailan amended return with this tax return.This request must be submitted withinthree years of the due date of the returnfor the loss year or within the period pre-scribed in Section 11-678 of the Admin.Code. Corporations that have elected torelinquish the carryback period for a netoperating loss incurred in taxable yearsbeginning after August 5, 1997, must sub-mit a copy of the federal election.

Because an S corporation does not carryover NOLs, it will not have made a federalelection to relinquish any or all of its car-ryback period. Therefore, for City tax pur-poses for losses arising in taxable yearsending in or after 2002, it will be presumedthat, unless the taxpayer S corporation at-tached a statement to this return indicatingthat the taxpayer intends to carry back theloss, the taxpayer is presumed to haveelected to relinquish the entire carrybackperiod. For S corporations filing on a com-bined basis only with other S corporationsor qualified Subchapter S subsidiaries, anystatement attached either to a pro formaNYC-3L or to the NYC-3A will bedeemed applicable to the entire group.Any excess net operating loss may be car-ried forward as if the taxpayer had electedto relinquish the entire carryback period forall but the first $10,000 of the loss.

LINE 12 - PROPERTY ACQUIREDPRIOR TO 1966A deduction is allowed with respect togain from the sale or other disposition ofany property acquired prior to January 1,1966 (except stock in trade, inventory,property held primarily for sale to cus-tomers in the ordinary course of trade orbusiness, or accounts or notes receivableacquired in the ordinary course of tradeor business). The amount of the deduc-tion with respect to each such property isequal to the difference between:

a) the amount of the taxpayer’s federaltaxable income; and

b) the amount of the taxpayer’s federaltaxable income (if smaller than theamount described in (a)), computedas if the federal adjusted basis of eachsuch property (on the sale or other


disposition of which gain was real-ized) on the date of the sale or otherdisposition had been equal to either:

1) its fair market value on January 1,1966, or the date of its sale orother disposition prior to January1, 1966, plus or minus all adjust-ments to basis made with respectto such property for federal in-come tax purposes for periods onor after January 1, 1966; or

2) the amount realized from its sale orother disposition, whichever is lower.

In no event, however, shall the totalamount computed above exceed the tax-payer’s net gain for the year from the saleor other disposition of property (other thanstock in trade, inventory, property held pri-marily for sale to customers in the ordinarycourse of trade or business, or accounts ornotes receivable acquired in the ordinarycourse of trade or business). Attach a ridershowing computation and a copy of fed-eral Form 1120 or 1120-S, Schedule D.

LINE 13 - CITY AND STATEREFUNDSEnter at line 13, in the appropriatecolumns, refunds or credits of the NewYork City General Corporation Tax, NewYork State Franchise Tax or New YorkCity or State Banking Corporation Tax forwhich no tax exclusion or deduction wasallowed in determining the taxpayer’staxable (entire) net income in a prior year.

LINE 14 - SALES TAX REFUNDSAND CREDITSThis line relates to credits or refunds ofsales and compensating use tax paid oncertain machinery and equipment and/orcertain services included in federal taxableincome for which a credit was claimed ina prior year. The amount entered hereshould be the same as the amount enteredat line 14 in the appropriate columns ofSchedule A. (Refer to instructions forSchedule A, line 14.)There is no addback for current refundsof sales tax paid on purchases of electric-ity or electric service used in the produc-tion of certain tangible property forwhich the taxpayer took a credit in a priorperiod under Admin. Code §11-604.15.

LINE 15 - FEDERAL JOBS CREDITEnter the portion of wages and salariespaid or incurred for the taxable year forwhich a deduction is not allowed pur-suant to the provisions of Section 280Cof the Internal Revenue Code because thefederal targeted jobs tax credit was taken.Attach federal Form 5884.LINE 16 - DEPRECIATION ADJUSTMENTEnter on line 16, in the appropriatecolumns, the adjustments from FormNYC-399 and/or Form NYC-399Z,Schedule C, line 8, Column B. See in-structions for Schedule B, line 6(d).LINE 17 - OTHER DEDUCTIONSa) Refer to instructions to Schedule B,

line 7 for adjustments relating to safeharbor leases.

b) Taxpayers entitled to a special deduc-tion for construction, reconstruction,erection or improvement of air pollu-tion control facilities initiated on orafter January 1, 1966, and having asitus in NYC in accordance with Sec-tion 11-602.8(g) should submit a ridershowing the complete computation.Enclose certification of complianceissued pursuant to Section 17-0707or Section 19-0309 of the Environ-mental Conservation Law. Entirenet income for the current year andall succeeding years must be com-puted without any deduction forsuch expenditures or for deprecia-tion of such property.

c) Deduct foreign dividend gross-uppursuant to Section 78 of the IRC (seefederal Form 1120, Schedule C, line15) to the extent not deducted at line9a. Entire net income does not in-clude any amount treated as dividendspursuant to Section 78 of the IRC.

d) Regulated investment companiesmust deduct dividends paid to stock-holders on this line.

LINE 19 – ENTIRE NET INCOMEIf line 18 is greater than line 8 so that theamount on this line would be a loss, enterzero (“0”) on this line, skip lines 22through 24, and enter zero (“0”) on line 5of Schedule M and on line 1 of ScheduleA. That loss may be available as a carry-

over. See instructions to Schedule B, line11 for more information.

LINE 20 - SPECIAL ADJUSTMENTSIf, as a result of the adjustments on thisline, entire net income is a loss, enter zero(“0”) on this line, skip lines 22 through24, and enter zero on line 5 of ScheduleM and line 1 of Schedule A.a) A corporation organized outside the

United States must enter at line 20 itsentire net income wherever earned,including all income from sourcesoutside the United States, less all al-lowable deductions attributablethereto, not taken into account incomputing federal taxable income.Attach a schedule. See “FOREIGNAIRLINES” under GENERAL IN-FORMATION, above.

b) If you are, either separately or as amember of a partnership, doing in-surance business as a member of theNew York Insurance Exchange de-scribed in Section 6201 of the Insur-ance Law, make the adjustmentrequired under Section 11-602.8(a)(6) and Section 11-602.8(b)(8) of the Admin. Code.

c) For tax years beginning on or afterAugust 1, 2002, corporations that arepartners in partnerships that receiveat least eighty percent of their grossreceipts from providing mobiletelecommunications services mustexclude their distributive share of in-come, gains, losses and deductionsfrom any such partnership, includingtheir share of separately reporteditems, from their federal taxable in-come reported on line 1.

LINE 21 - INVESTMENT INCOMEInvestment income includes: 50% of div-idends from non-subsidiary stocks heldfor investment, interest from investmentcapital, net capital gain or loss from salesor exchanges of nonsubsidiary securitiesheld for investment, and income fromcash if an election is made to treat cashas investment capital on line 3 of Sched-ule D. Do not include any “gross-up”dividends pursuant to Section 78 of theIRC that have been deducted in comput-ing entire net income.


Investment income includes interest receivedon a loan to a subsidiary if the subsidiaryclaims such interest as an NYC General orBanking Corporation Tax deduction on anyreturn for any period, and if such loan is evi-denced by a bond or other corporate security.Do not include any capital loss which was notused in computing federal taxable income.

In computing investment income, sub-tract the amount of deductions allowablein computing entire net income which aredirectly or indirectly attributable to in-vestment capital or investment income.

LINE 21a - DIVIDENDS Enter dividends not excluded on line 10 ex-cept for “gross-up” dividends pursuant to Sec-tion 78 of the IRC. This includes 50% ofdividends from nonsubsidiary corporations forwhich an exclusion was allowed on line 10 ofthis schedule and 100% of dividends fromstock not meeting the holding period require-ment set forth in Section 246(c) of the IRC.

LINE 21d - INCOME FROM CASHEnter income from cash on Schedule B,line 21d, only if you have elected to treatcash as investment capital and have enteredthe amount thereof on Schedule D, line 3.

LINE 21f - DEDUCTIONS ATTRIB-UTABLE TO INVESTMENT IN-COMEFor more information, see Statement ofAudit Procedure GCT-2008-04, Noninter-est Expense Attribution, April 9, 2008, andStatement of Audit Procedure PP-2008-12, GCT & UBT Treatment of RepurchaseAgreements and Securities Lending andBorrowing Transactions for FinancialServices Firms Regularly Engaged inSuch Activities, March 31, 2008, availableon the Department’s website at nyc.gov/fi-nance. Attach a list of the deductions di-rectly attributable to investment incomeand the deductions indirectly attributableto investment income.

LINE 22 - APPORTIONED NEWYORK CITY NET OPERATINGLOSS DEDUCTIONCorporations that report both business andinvestment income must apportion any netoperating loss deduction on line 11 be-tween business income and investment in-come. This is computed by multiplyingthe net operating loss deduction by a ratio.

The ratio is a fraction, the numerator ofwhich consists of investment income be-fore deducting any net operating loss andthe denominator of which is entire net in-come before deducting any net operatingloss. The ratio may be expressed as a per-centage. Multiply the net operating lossdeduction by the result. Attach a copy ofForm NYC-NOLD-GCT, Net Operat-ing Loss Deduction Computation.

LINE 23b – COMBINEDINVESTMENT INCOMETO BE ALLOCATEDEnter the amount from line 23a. If theamount on line 23a is greater than theamount on line 19 or 20, enter the amountfrom line 19 or 20. If the entry on line23a is a loss, enter zero (“0”) on line 23b.

If the investment allocation percentage iszero, interest on bank accounts must be mul-tiplied by the business allocation percentage.

SCHEDULE C(Subsidiary Capital)- and -SCHEDULE D(Investment Capital and Investment Al-location Percentage)Complete Schedule C if you have any sub-sidiaries. (Refer to the instructions forSchedule B, lines 3 and 4 for the defini-tion of a subsidiary and subsidiary capi-tal.)

Complete Schedule D if you have invest-ment capital. Investment capital is the av-erage value of your investments in stocks,bonds, and other corporate or governmentsecurities, less liabilities, both long termand short term, directly or indirectly at-tributable to investment capital. Invest-ment capital does not include thosestocks, bonds or other securities that areheld for sale to customers in the regularcourse of business or that constitute sub-sidiary capital. Investment capital doesnot include interests in, or obligations of,partnerships or other unincorporated en-tities. (Refer to Title 19 Rules of the Cityof New York Section 11-37 for the defi-nition of investment capital.)

To determine the value of your assets forbusiness, investment and subsidiary cap-ital purposes, you must include real prop-

erty and marketable securities at fair mar-ket value.

The fair market value of any asset is theprice (without any encumbrance, whetheror not the taxpayer is liable) at which awilling seller, not compelled to sell, willsell and a willing purchaser, not com-pelled to buy, will buy. The fair marketvalue, on any date, of stocks, bonds andother securities regularly dealt in on anexchange, or in the over-the-counter mar-ket, is the mean between the highest andlowest selling prices on that date.

The value of all other property must be in-cluded at the value shown on the tax-payer’s books and records in accordancewith generally accepted accounting prin-ciples (GAAP). (Refer to the instructionsfor Schedule E, lines 1 through 5 for moreinformation on computing average value.)

In completing Schedules C and D ofForm NYC-3A/ATT, you may use theworksheet which appears below to deter-mine the amount of liabilities indirectlyattributable to a particular asset.

In column D of Schedules C and D ofForm NYC-3A/ATT on the line for theasset in question, include the sum of theamount from line 15 of this worksheetand the amount of liabilities directly at-tributable to that asset.

WORKSHEETTotal liabilities from theappropriate column onNYC-3A or NYC-3A/B, Sch. E, line 6 1. _________Liabilities directlyattributable to:Subsidiary capital 2. _________Investment capital 3. _________Business capital 4. _________Add: lines 2, 3, and 4 5. _________Subtract line 5 from line 1 6. _________Enter amount from either:NYC-3A/ATT, Sch. C,line 1, col. C lessamount from line 2of worksheet 7a. _________OR


NYC-3A/ATT, Sch. D,line 1, col. C lessamount from line 3of worksheet 7b. _________Adjusted total assetsfrom the appropriatecolumn on NYC-3A orNYC-3A/B, Sch. E, line 5less amount from line 5of worksheet 8. _________Divide: line 7a or 7b byline 8 9. ________%Multiply line 6 by line 9 10. _________Average value of aparticular asset 11. _________Enter amount from either:NYC-3A/ATT, Sch. C,line 1, col. C 12a. _________OR

NYC-3A/ATT, Sch. D,line 1, col. C 12b. _________Divide: line 11 byline 12a or 12b 13. ________%Enter amount from line 10 14. _________Multiply: line 14 byline 13 15. _________

To determine the portion of subsidiary orinvestment capital to be allocated withinthe City, multiply the amount of sub-sidiary or investment capital during theperiod covered by the return by the is-suer’s allocation percentage (as defined inthe instructions for Schedule M, line 10).

This percentage may be obtained (1)from tax service publications, (2) fromthe Department’s website under “Forms& Publications” at nyc.gov/finance, or(3) by calling 311. If calling from out-side of the five NYC boroughs, pleasecall 212-NEW-YORK (212-639-9675).If the subsidiary or other issuer was notdoing business in New York City duringthe preceding year, the percentage is zero.The investment allocation percentageshould be rounded to the nearest one hun-dredth of a percentage point.

SCHEDULE D, LINE 6 - CASHIf you have both business and investmentcapital, you may elect to treat cash on handor on deposit as either business or invest-

ment capital. If you wish to elect to treatcash as investment capital, you must in-clude it on this line. Otherwise, you will bedeemed to have elected to treat cash asbusiness capital. You may not elect to treatpart of such cash as business capital andpart as investment capital. You may not re-voke your election after it has been made.

SCHEDULE E(Total Capital)

LINES 1 THROUGH 5 - AVERAGE VALUE OF TOTAL ASSETSTo determine the value of your assets forbusiness, investment and subsidiary cap-ital purposes, you must include real prop-erty and marketable securities at fairmarket value.

The value of all other property must beincluded at the value shown on the tax-payer's books and records in accordancewith generally accepted accounting prin-ciples (GAAP).

Use lines 2, 3 and 4 to adjust the value ofthe assets reported and use the averagevalue. Average value is generally com-puted on a quarterly basis. A more fre-quent basis (monthly, weekly or daily)may be used. Where the taxpayer’s usualaccounting practice does not permit com-putation of average value on a quarterlyor more frequent basis, a semiannual orannual basis may be used if no distortionof average value results.

With respect to real property ownedby the taxpayer and located withinNew York City, the fair market valueis presumed to be not less than the es-timated market value of the propertyon the Final Assessment Roll of theCity for the period covered by the re-turn or the most recent sales price,whichever is greater.

LINE 6 - TOTAL LIABILITIESThe liabilities deductible in computingeach type of capital are those liabilities(both long and short term) that are di-rectly or indirectly attributable to eachtype of capital. Use the same method ofaveraging as is used in determining aver-age value of assets.

LINES 7 THROUGH 11If the period covered by this report is otherthan a period of twelve calendar months,first follow the instructions on Schedule Eto calculate preliminary amounts for lines7 through 11. Before entering theseamounts on Schedule E, multiply eachamount by a fraction, the numerator ofwhich is the number of months or majorparts thereof included in such period andthe denominator of which is twelve.

If the amount on line 8, Column E is lessthan zero because liabilities attributableto subsidiary capital exceed the value ofthe assets reported in Schedule C, add theabsolute amount of the amount on line 8,Column E to the amount on line 7, Col-umn E and enter the total on line 9, Col-umn E. For example, if the amount onSchedule E, line 8, Column E is ($100)and the amount on Schedule E, line 7,Column E is $200, the amount on Sched-ule E, line 9, Column E should be $300.

If the amount on Schedule D, line 7, Col-umn E is less than zero, enter zero (“0”)on line 10, Column E of this Schedule E,enter the amount from line 9, Column Eon line 11, Column E.

SCHEDULE F - (SALARIES ANDCOMPENSATION OF CERTAINSTOCKHOLDERS)Include all stockholders owning in excessof 5% of taxpayer's issued capital stockwho received any compensation, includ-ing commissions.

SCHEDULE G – (Business Location Information)(Form NYC-3A-ATT only).

SCHEDULE H(Business Allocation Percentage)

Note: Zip codes beginning with the fol-lowing three-digits are within the fiveboroughs of New York City:

Manhattan 100, 101, 102Bronx 104Brooklyn 112Queens 111, 113, 114, 116Staten Island 103

In addition, the five-digit zip codes 11004,11005 and some addresses with a zip code


of 11001, 11040 and 11096 are in the bor-ough of Queens. If the zip code is 11001,11040 or 11096, consult the address trans-lator located on the City’s websitehttp://a030-goat.nyc.gov/goat/Default.aspxto determine if the corporation's address iswithin New York City.

A corporation is entitled to allocate part ofits business income and capital outsideNew York City if it carries on businessboth inside and outside New York Cityand, for taxable years beginning beforeJuly 1, 1996, only if it has a “regular placeof business” outside the City. Otherwise,100% of its business income and capitalmust be allocated to New York City. Ifyou did not carry on business both insideand outside New York City, you mustenter 100% at Schedule H, line 5. If youcarried on business both inside and outsideNew York City, you must complete Sched-ule G, parts I and II and Schedule H, busi-ness allocation percentage. Aviationcorporations and corporations operatingvessels qualified to file a combined returnwith similar corporations, do not completeSchedule H. See instructions on page 20.

The business allocation percentage isgenerally computed by means of a three-factor formula:

l real and tangible personal property(including rented property)

l business receiptsl payroll

WEIGHTED FACTOR ALLOCATIONFor taxable years beginning in 2014, tax-payers must weight the three factors asfollows: 13.5% for property; 13.5% forwages; and 73% for receipts. Those cor-porations using weighted factors mustcomplete Schedule H.

The following example illustrates the cal-culation of the business allocation per-centage using weighted factors:

EXAMPLE

Assume the percentages on lines 1g, 2hand 3b are as follows:

1g. 25.0002%2h. 65.2206%3b. 35.6104%

The amounts on lines 1h, 2i, 3c, 4a and4b should be calculated as follows:

1h. 25.0002 X 13.5 = 337.50272i. 65.2206 X 73 = 4761.10383c. 35.6104 X 13.5 = 480.74044a. Sum of above = 5579.34694b. divide line 4a by 100

Express as a percentage: 55.79%

ALTERNATIVE ALLOCATIONMETHOD You cannot use an allocation methodother than the formula basis set out inSchedule H without the consent of theDepartment of Finance. In order to re-quest consent to use a different method ofallocation, a written request, separate andapart from filing this return, must be sub-mitted. For details on how to make sucha request, go to www.nyc.gov/finance. Ifthe consent to use a different allocationmethod has not been obtained at the timeof the filing of the return, you must usethe formula basis set out in Schedule Hand pay the tax in accordance therewith.If the Department consents to your pro-posed alternative allocation method and itresults in a lower tax liability than the for-mula basis set out in Schedule H, youmay be entitled to claim a refund of theexcess amount you have paid.

Property FactorWhen computing the property percentage,value real and tangible personal propertyowned by the corporation at the adjustedbasis used for federal income tax purposes.However, you may make a one-time revo-cable election to value real and tangible per-sonal property owned at fair market value.You must make this election on or beforethe due date (or extended due date) for filingthe taxpayer’s first General Corporation TaxReturn. This election will not apply to anytaxable year with respect to which the cor-poration is included in a combined reportunless each of the corporations included onthe combined report has made the electionwhich remains in effect for such year.

LINE 1b - REAL ESTATE RENTEDThe value of real property rented to thetaxpayer is eight times the gross rentpayable during the year covered by thisreturn. Gross rent includes any amountpayable as rent or in lieu of rent, such as

taxes, repairs, etc., and, if there are lease-hold improvements made by or on behalfof the taxpayer, the amount of annualamortization of such cost. Do not includethe rental of personal property on this line.

LINE 1d - TANGIBLE PERSONALPROPERTY OWNEDEnter the average value of the tangiblepersonal property owned. The term “tan-gible personal property” means corporealpersonal property, such as machinery,tools, implements, goods and wares. Donot include cash, shares of stock, bonds,notes, credits, evidences of an interest inproperty, or evidences of debt.

LINE 1e - TANGIBLE PERSONALPROPERTY RENTEDEnter the average value of the tangiblepersonal property you rented. The valueof rented tangible personal property iseight times the gross rent payable duringthe year covered by this return.

Receipts FactorLINES 2a AND 2b - SALES OFTANGIBLE PERSONAL PROP-ERTYEnter on line 2a, receipts in the regularcourse of business from the sale of tangi-ble personal property where shipmentsare made to points within New York City.Enter on line 2b, receipts from all salesof tangible personal property.

LINE 2c - SERVICES PERFORMEDReceipts from services performed withinNew York City are allocable to New YorkCity. All amounts received by the tax-payer in payment for such services are al-locable to New York City regardless ofwhether the services were performed byemployees or agents of the taxpayer, bysubcontractors, or by any other persons.It is immaterial where such amounts werepayable or where they actually were re-ceived.

Commissions received by the taxpayerare allocated to New York City if the serv-ices for which the commissions were paidwere performed in New York City. If thetaxpayer’s services for which commis-sions were paid were performed for thetaxpayer by salesmen attached to or work-ing out of a New York City office of the


taxpayer, the taxpayer’s services will bedeemed to have been performed in NewYork City.

Corporations engaged in publishing news-papers or periodicals must allocate receiptsfrom advertising in such publicationsbased on the circulation of the publicationin the City compared to the total circula-tion. Corporations engaged in radio or tel-evision broadcasting, whether by cable orother means, must allocate receipts frombroadcasting programs or commercialmessages based upon the location of theaudience for the broadcasts in the Citycompared to the total audience. For tax-able years beginning on or after January 1,2002, corporations engaged in publishingnewspapers or periodicals or in radio or tel-evision broadcasting must allocate receiptsfrom subscriptions to such newspapers, pe-riodicals and broadcast programs based onthe location of the subscriber.

Taxpayers principally engaged in the ac-tivity of air freight forwarding acting asprincipal and like indirect air carriers arerequired to determine receipts for purposesof the receipts factor arising from the ac-tivity from services performed within NewYork City as follows: 100% of the receiptsif both the pick up and delivery associatedwith the receipts are made in New YorkCity and 50% of the receipts if either thepickup or delivery associated with the re-ceipts is made in the City but not both.

Receipts from management, administra-tion or distribution services provided to aregulated investment company (RIC)must be allocated based upon the per-centage of the RIC’s shareholders domi-ciled in New York City. (Attach ridershowing computation.)

SOURCING OF RECEIPTS OFREGISTERED SECURITIES ORCOMMODITIES BROKERS ORDEALERSFor taxable years beginning after 2008,new rules are applicable in determiningthe sourcing of the receipts of taxpayerswhich are registered securities or com-modities brokers or dealers. The rulesbelow apply for determining whether areceipt is deemed to arise from servicesperformed in New York City by a regis-

tered securities or commodities broker ordealer, for purposes of computing the re-ceipts factor of the BAP. See Ad. Code§11-604(3)(a)(10) as added by section 34of Chapter 201 of the Laws of 2009.

A registered securities or commoditiesbroker or dealer is a broker or dealer whois registered by the Securities and Ex-change Commission (SEC) or the Com-modities Futures Trading Commissionand includes over-the-counter (OTC) de-rivatives dealers as defined under regula-tions of the SEC (17 CFR 240.3b-12).The terms securities and commoditieshave the same meanings as the meaningsin IRC sections 475(c)(2) and 475(e)(2).

l Brokerage commissions - Brokeragecommissions earned from the execu-tion of securities or commodities pur-chase or sales orders for the accountsof customers are deemed to arise froma service performed in New York Cityif the customer who is responsible forpaying the commissions is located inNew York City. See Ad. Code § 11-604(3)(a)(10)(A)(i) as added by section34 of Chapter 201 of the Laws of 2009.

l Margin interest - Margin interestearned on brokerage accounts isdeemed to arise from a service per-formed in New York City if the cus-tomer who is responsible for paying themargin interest is located in New YorkCity. See Ad. Code § 11-604(3)(a)(10)(A)(ii) as added by section34 of Chapter 201 of the Laws of 2009.

l Account maintenance fees - Accountmaintenance fees are deemed to arisefrom a service performed in New YorkCity if the customer who is responsiblefor paying the account maintenancefees is located in New York City. SeeAd. Code § 11-604(3)(a)(10)(A)(vi) asadded by section 34 of Chapter 201 ofthe Laws of 2009.

l Income from principal transac-tions - Gross income from principaltransactions (that is, transactions inwhich the registered broker or dealeris acting as principal for its own ac-count, rather than as an agent for thecustomer) is deemed to arise from aservice performed in New York City

if the production credits for thesetransactions are awarded to a NewYork City branch, office, or em-ployee of the taxpayer.

Registered broker dealers may elect tosource the gross income from principaltransactions based on the location of thecustomer to the principal transaction. Ifthe election is made, gross income fromprincipal transactions is deemed to arisefrom a service performed in New YorkCity to the extent that the gross proceedsfrom the transactions are generated fromsales of securities or commodities tocustomers within the city based upon themailing addresses of those customers inthe records of the taxpayer. See Ad.Code § 11-604(3)(a)(10)(A)(iii) asadded by section 34 of Chapter 201 ofthe Laws of 2009.

l Fees from advisory services for theunderwriting of securities - Feesearned from advisory services for acustomer in connection with the un-derwriting of securities (where thecustomer is the entity contemplatingthe issuance of the securities or is is-suing securities) or for the manage-ment of an underwriting of securitiesare deemed to arise from a service per-formed in New York City if the cus-tomer responsible for paying the fee islocated in New York City. See Ad.Code § 11-604(3)(a)(10)(A)(iv)(I) asadded by section 34 of Chapter 201 ofthe Laws of 2009.

l Receipts from the primary spreadfor the underwriting of securities -Receipts from the primary spread orselling concession from underwrittensecurities are deemed to arise from aservice performed in New York City ifproduction credits are awarded to abranch, office, or employee of the tax-payer in New York City as a result ofthe sale of underwritten securities. SeeAd. Code § 11-604(3)(a)(10)(A)(iv)(II)as added by section 34 of Chapter 201of the Laws of 2009.

l Interest earned on loans to affiliates- Interest earned on loans and advancesmade by a taxpayer to an affiliate withwhom they are not required or permit-ted to file a combined return are


deemed to arise from a service per-formed in New York City if the princi-pal place of business of the affiliatewho is responsible for the payment ofinterest is located in New York City.See Ad. Code § 11-604(3)(a)(10)(A)(v)as added by section 34 of Chapter 201of the Laws of 2009.

l Fees for management or advisoryservices - Fees earned from manage-ment or advisory services, includingfees from advisory services for activ-ities relating to mergers or acquisitionactivities, are deemed to arise from aservice performed in New York Cityif the customer responsible for pay-ing these fees is located in New YorkCity. See Ad. Code § 11-604(3)(a)(10)(A)(vii) as added bysection 34 of Chapter 201 of theLaws of 2009.

A customer is located in New York Cityif the mailing address of the customer, asit appears in the broker’s or dealer'srecords, is in New York City. See Ad.Code § 11-604(3)(a)(2)(B)(v) as addedby section 33 of Chapter 201 of the Lawsof 2009.

If the taxpayer is unable from its recordsto determine the mailing address of thecustomer, the receipts enumerated in anyof such items shall be deemed to arisefrom services performed at the branch oroffice of the taxpayer that generates thetransaction for the customer that gener-ated such receipts. See Ad Code § 11-604(3)(a)(10)(D) as added by section 34of Chapter 201 of the Laws of 2009.

Note that the rules for the receipts underAd. Code § 11-604(3)(a)(10)(A) describedabove shall also apply to receipts de-scribed herein arising from a correspon-dent securities relationship. See Ad. Code§ 11-604(3)(a)(10)(C) as added by section34 of Chapter 201 of the Laws of 2009.

LINE 2d - RENTALS OF PROPERTYReceipts from rentals of real and personalproperty situated in New York City areallocable to New York City. These in-clude all amounts received by the tax-payer for the use or occupation ofproperty, whether or not such property isowned by the taxpayer.

LINE 2e - ROYALTIESRoyalties from the use in New York Cityof patents or copyrights are allocable toNew York City. These include all amountsreceived by the taxpayer for the use ofpatents or copyrights, whether or not thepatents or copyrights were originally is-sued to or are owned by the taxpayer. Apatent or copyright is used in New YorkCity to the extent that activities thereunder are carried on in New York City.

LINE 2f - OTHER BUSINESSRECEIPTSAll other business receipts earned by thetaxpayer within New York City are allo-cable to New York City. Business re-ceipts are not considered to have beenearned by the taxpayer in New York Citysolely by reason of the fact that they werepayable in New York City or actuallywere received in New York City. Re-ceipts from sales of capital assets (prop-erty not held by the taxpayer for sale tocustomers in the regular course of busi-ness) are not business receipts.

The following are also business receiptsand are allocable to New York City.

l receipts from the sale of real propertyheld by the taxpayer as a dealer forsale to customers in the regular courseof business, provided the real prop-erty was situated in New York City

l receipts from sales of intangible per-sonal property included in businesscapital held by the taxpayer as adealer for sale to customers in theregular course of business, providedthe sales were made in New YorkCity or through a regular place ofbusiness in New York City

Payroll FactorLINE 3a - WAGES AND SALARIESEmployees within New York City gener-ally include all employees, except gen-eral executive officers, regularlyconnected with or working out of an of-fice or place of business maintained bythe taxpayer within New York City. Formore information, please see 19 RCNYSection 11-66(a)(4).

General executive officers include the

chairman, president, vice-president, sec-retary, assistant secretary, treasurer, assis-tant treasurer, comptroller, and any otherofficer charged with the general executiveaffairs of the corporation. An executiveofficer whose duties are restricted to ter-ritory either inside or outside of New YorkCity is not a general executive officer.

Weighted Factor Allocation

LINE 4aThose taxpayers using the weighted fac-tor allocation should add the values fromlines 1h, 2i and 3c.

LINE 4bDivide line 4a by 100 if no factors aremissing. If a factor is missing, divide line4a by the total of the weights of the fac-tors present. Note that a factor is notmissing merely because its numerator iszero, but is missing if both its numeratorand denominator are zero. Enter as a per-centage. Round to the nearest one hun-dredth of a percentage point.

LINE 5 - BUSINESS ALLOCATIONPERCENTAGECorporations using the weighted factorallocation method should enter theamount from line 4b.

Aviation corporations may only file acombined return with other aviation cor-porations which allocate in the samemanner. Similarly, corporations operatingvessels may only file a combined returnwith other corporations operating vesselswhich allocate in the same manner.These combined filers must computetheir business allocation percentage usinga separate schedule. For aviation corpo-rations, this schedule must aggregate theapplicable allocation factors (aircraft ar-rivals and departures; revenue tons; andoriginating revenue) for both New YorkCity and everywhere. For corporationsoperating vessels this schedule must ag-gregate the number of working days thevessel was in New York City territorialwaters and everywhere.

SCHEDULE M Summary

LINES 6 THROUGH 9If the tax period reported on this return is


less than 12 months and allocated capitalhas been separately prorated for the cor-porations included in this combined re-port, do not prorate allocated capitalagain. See instructions for Schedule E,lines 7 through 11 for more informationand for information on calculating busi-ness and investment capital for the corpo-rations included in this combined report.

LINE 10 - ISSUERS ALLOCATIONPERCENTAGEEnter on line 10, the amount from line 8plus the amount from line 9 divided by theamount from Schedule, E, line 7, columnE rounded to the nearest one hundredth ofa percentage point. Do not calculate yourissuer's allocation percentage by addingthe business, investment and subsidiarycapital allocation percentages and divid-ing that total by the number of percent-ages. If the tax period reported on thisreturn is less than 12 months and theamount on line 9 has been prorated, in cal-culating the issuers allocation percentage,use the amount that would have been en-tered on line 9 had there been no proration.The issuer's allocation percentage cannotbe less than zero.

LINE 11 - NUMBER OFSUBSIDIARIES INCLUDEDIN THE COMBINED GROUPEnter the number of subsidiaries in thecombined group.

LINES 11a to 11gEnter the number of taxable subsidiarieswith NYC Receipts and multiply by theamount shown. A subsidiary is any cor-poration other than the reporting corpo-ration. For NYC Receipts, eachsubsidiary should use the amount onForm 3A/B, Schedule H, Line 2g(A) inthe column for that subsidiary. If there isonly one subsidiary, use the amount en-tered on Form 3A, Schedule H, Line2g(A) (Column B) for the NYC Receiptsfor that subsidiary.

LINE 12Add lines 11ab through 11gb.

ADDITIONAL REQUIRED INFOR-MATIONAll questions must be answered. For pur-poses of these questions, the term “mem-

ber corporation” shall mean a corporationthat is a member of the combined groupof corporations included in this Com-bined General Corporation Tax Return(the “Combined Group”).

QUESTION 1In reporting the "NYC principal businessactivity," give the one activity that ac-counts for the largest percentage of totalreceipts for the Combined Group. Totalreceipts means gross receipts plus allother income. State the broad field ofbusiness activity as well as the specificproduct or service (e.g., mining copper,manufacturing cotton broad woven fab-ric, wholesale meat, retail men’s apparel,export or import chemicals, real estaterental, or real estate operation of motel).

QUESTION 10If you answer “yes” to question 9, at-tach a separate sheet providing street ad-dress, borough, block and lot number ofsuch property. If you answer “yes” toquestion b, c or d, complete questions 11and 12. The term “owning corporation”means the member corporation whichowns the real property.

A controlling interest in the case of a cor-poration means:

l 50% or more of the total combinedvoting power of all classes of stockof such corporation, or

l 50% or more of the total fair marketvalue of all classes of stock of suchcorporation.

QUESTION 13If you answer “yes” to question 13, noportion of the income, gain, loss, deduc-tion or capital of a QSSS is permitted tobe included in a separate report filed bythe S corporation parent. The QSSS musteither: 1) be included in the CombinedGroup as a separate member corporationor 2) file a separate General CorporationTax return. See Finance Memorandum99-3. Note that to be included in theCombined Group, the QSSS would haveto be required to be included or to be per-mitted to be included and to have electedsuch inclusion.

AFFILIATIONS SCHEDULEList names and addresses of all affiliatedcorporations, including those not in-cluded in this combined report, their fed-eral Employer Identification Number, ifany, and principal business activity. Inaddition, list the NAICS code and stockholdings at the beginning of the year. Anaffiliated corporation for purposes ofcompleting the schedule is a corporationthat satisfies the stock ownership or con-trol requirements set forth in Section A,“Related Corporation,” on page 2 ofthese instructions, without regard to anylimitation that may otherwise exclude thecorporation from the combined report.

You may attach a completed federalForm 851 for any domestic corporationsthat would otherwise be included on theAffiliations Schedule.

PRIVACY ACT NOTIFICATIONThe Federal Privacy Act of 1974, asamended, requires agencies requestingSocial Security Numbers to inform indi-viduals from whom they seek this infor-mation as to whether compliance with therequest is voluntary or mandatory, whythe request is being made and how the in-formation will be used. The disclosure ofSocial Security Numbers for taxpayers ismandatory and is required by section 11-102.1 of the Administrative Code of theCity of New York. Such numbers dis-closed on any report or return are re-quested for tax administration purposesand will be used to facilitate the process-ing of tax returns and to establish andmaintain a uniform system for identify-ing taxpayers who are or may be subjectto taxes administered and collected by theDepartment of Finance, and, as may berequired by law, or when the taxpayergives written authorization to the Depart-ment of Finance for another department,person, agency or entity to have access(limited or otherwise) to the informationcontained in his or her return.


NYC-3A, NYC-3A/B and NYC-3A/ATT Instructions 2014

Documents

NEW YORK CITY DEPARTMENT OF FINANCE … · NEW YORK CITY DEPARTMENT OF FINANCE ... Part E of Chapter 59 of the Laws of 2013, § 10. ... formation, see “Captive Real