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Instructions for Form NYC-202-EIN - 2022 Page 8
100% with the phase-down to begin in 2023. The ning before January 1, 1985 (except recovery 4) Add back royalty and interest payments
taxpayer can elect to apply a 50% depreciation rate property subject to the provisions of IRC made to related members as required by
for property placed in service in the taxpayer’s first Section 280-F). Ad. Code section 11-506(e).(See Royalty
tax year ending after September 27, 2017. The Payments to Related Members, page 3)
phase-down of the bonus depreciation enacted ACRS and MACRS may not be allowed for
under the 2015 PATH Act is still applicable to property placed in service outside of New York 5) any other additions required by Sections
property acquired before September 28, 2017. State in taxable years beginning after 1984 and 11-506, 11-507 and 11-509 of the NYC
Thus, for property acquired before September 28, before January 1, 1994 (except property sub- Administrative Code. (Attach any appro-
2017 and placed in service in 2018, the bonus ject to the provisions of IRC Section 280-F). priate schedules.)
depreciation is 40% and 30% for property placed For additional information regarding deprecia-
in service in 2019 with no bonus depreciation for tion deductions for property placed in service - SUBTRACTIONS -
property placed in service after 2019. Under the outside New York after 1984 and before 1994, LINE 13 - INCOME AND
TCJA the first year depreciation limit increase of see Finance Memorandum 99-4 “Depreciation UNINCORPORATED BUSINESS TAX
$8,000 for passenger automobiles under for Property Placed in Service Outside New REFUNDS
§280(F)(a)(1)(A) is extended to include automo- York After 1984 and Before 1994”. Enter any refund or credit for overpayment of
biles placed in service on or before December 31,
any income tax to the extent included in com-
2026. Prior to that in order to qualify for the $8,000 In place of the federal depreciation deduction,
puting part 1, line 8.
increase in bonus depreciation, the passenger auto- a depreciation deduction using pre-ACRS or
mobile would had to have been placed into service MACRS rules (IRC Section 167) is allowed. LINE 14 - FEDERAL
on or before December 31, 2019. This extension Enter on line 10c the ACRS depreciation EMPLOYMENT CREDIT
of the placed in service deadline only applies to deduction used in computing part 1, line 8. Enter the portion of wages and salaries paid or
automobiles acquired on or after September 28, (Refer to instructions for line 15.) (Attach incurred for the taxable year for which a
2017. However, if the passenger automobile was Form NYC-399 and/or NYC-399Z.) deduction is not allowed pursuant to the provi-
acquired before September 28, 2018, the first year sions of Section 280C of the Internal Revenue
additional depreciation is phased down to $6,400 Line 10d: Add back losses, interest, depreci- Code. (Attach federal Form 5884 or any other
in the case of an automobile placed in service dur- ation and any other expenses deducted for applicable federal forms.)
ing 2018 and to $4,800 in the case of automobile federal income tax purposes directly or indi-
placed in service during 2019. rectly attributable to the holding, leasing or LINE 15 - DEPRECIATION
managing of real property (including any ADJUSTMENT
For tax years beginning on or after January 1, business conducted at the property as an inci- In place of the disallowed ACRS deduction
2004, other than for eligible farmers (for purposes dental service to tenants) or to the income or for certain property, line 10c, a depreciation
of the New York State farmers' school tax credit), gain therefrom, if such holding, leasing or deduction computed by any method permit-
the amount allowed as a deduction with respect to managing of property is exempt from ted under IRC Section 167 as in effect on
a sport utility vehicle that is not a passenger auto- Unincorporated Business Tax under NYC December 31, 1980, will be allowed. Enter
mobile for purposes of section 280F(d)(5) of the Administrative Code Section 11-502(d) in on line 15 the ACRS adjustment from Form
Internal Revenue Code is limited to the amount taxable years beginning on or after July 1, NYC-399, Schedule C, line 8, column B.
allowed under section 280F of the Internal 1994 or January 1, 1996, in the case of park- (Attach Form NYC-399.) See instructions
Revenue Code as if the vehicle were a passenger ing services rendered to tenants at a garage for line 10c and for Form NYC-399, see also
automobile as defined in that section. For SUVs open to the public. (Refer to “Who is Subject Finance Memorandum 99-4 “Depreciation
that are qualified property other than qualified to the Tax”, paragraph 6.) Enter on line 10d for Property Placed in Service Outside New
Resurgence Zone property and other than New expense deductions and losses reflected in York After 1984 and Before 1994.”
York Liberty Zone property, the amount allowed Part 1, line 8 attributable to exempt real
as a deduction is calculated as of the date the SUV estate activities. If a taxpayer took the additional depreciation
was actually placed in service and not as of deduction on its federal return with respect
September 10, 2001. SUVs which are entitled to LINE 11 - OTHER ADDITIONS to “qualified property” OTHER THAN
Federal first-year bonus depreciation under IRC Describe in a separate schedule the nature and “qualified Resurgence Zone property”,
section 168(k) are not entitled to bonus deprecia- amount of any additions, such as: “qualified New York Liberty Zone property”
tion for New York City purposes except for SUVs 1) interest income on state and local bonds and “qualified New York Liberty Zone lease-
that are “qualified Resurgence Zone property.” held in connection with the business hold improvements or SUVs for which an
On the disposition of an SUV subject to the limi- (other than on bonds of New York State add-back was required under the instruc-
tation, the amount of any gain or loss included in and its political subdivisions) tions to Line 10(c) of this schedule, use NYC
income must be adjusted to reflect the limited 399Z to calculate the amount of the deduc-
deductions allowed for City purposes under this 2) interest or dividend income on bonds or tion that may be deducted for City purposes.
provision. Enter on Schedule B, lines 10(c) and 15 securities, held in connection with the The amount appearing in column B of line 8
the appropriate adjustments from form NYC- business, of any United States authority, on Form NYC 399Z should be included on
399Z. See, Finance Memorandum 22-1, commission or instrumentality that the this line. See “Highlights of Recent Tax Law
“Application of IRC 280F Limits to Sport Utility laws of the United States exempt from Changes” and Finance Memorandum 22-1,
Vehicles” for more information. federal income tax but not from state or “Application of IRC 280F Limits to Sport
local income taxes Utility Vehicles”, for more information.
The federal depreciation deduction computed
under the Accelerated Cost Recovery System 3) any amount deducted in computing part LINE 16 - EXEMPT INCOME
(ACRS) or the Modified Accelerated Cost 1, line 8, for salaries, wages, withdrawals Attach a schedule showing the nature and
Recovery System (MACRS) (IRC Section or interest paid to the proprietor of the amount of exempt income, such as:
168) is not allowed for property placed in serv- unincorporated business 1) interest income on United States obliga-
ice in New York State in taxable years begin- tions included in computing part 1, line 8
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