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