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 Instructions for Form NYC-2.5

 Computation of Receipts Factor                                                                                                             2022
All citations are to New York City Administrative Code sections unless          Line 3 – For the New York City column, net the gains  from the sales of real 
specifically noted otherwise.                                                   property located within the city against the losses from the sales of real prop-
                                                                                erty located  within the city and enter the result (but not less than zero).  For 
GENERAL INFORMATION                                                             the Everywhere column, net the gains from the sales of real property located 
                                                                                everywhere  against the losses from the sales of real property located every-
For tax years beginning on and after January 1, 2015, significant changes       where and enter the result (but not less than zero). 
were made to the rules for computing the receipts factor of the business al-     
location percentage. The receipts factor of the business allocation percent-    SECTION 11-654.2(3) – RENTALS OF REAL AND TANGIBLE PER-
age under the Business Corporation Tax generally uses customer-based            SONAL PROPERTY, ROYALTIES, AND RIGHTS FOR CERTAIN 
sourcing. Receipts from services are generally sourced to New York City if      CLOSED-CIRCUIT AND CABLE TV TRANSMISSIONS 
the customer receives the benefit of the service in the city.                    
                                                                                Line 4 – Receipts from rentals of real and tangible personal property located 
In general, for tax years beginning in or after 2018, taxpayers that allocate   within the city are  included  in the New York City column. 
business income and business capital inside and outside New York City must       
do so using their receipts factor (i.e. the percentage of all receipts that are Line 5 – Receipts of royalties from the use of patents, copyrights, trade-
from sources inside New York City). See Administrative Code of the City of      marks, and similar intangible personal property within the city are  included 
New York (“Administrative Code”) sections 11-654(3)(a)(10)(x) and 11-           in the  New York City column. 
654.2. However, a taxpayer with NYC receipts of $50,000,000 or less that al-     
locates business income and business capital may make a one-time election       Line 6 – Receipts from the sales of rights for closed-circuit and cable tele-
to allocate business income and business capital using the three-factor         vision transmissions of an event (other than events occurring on a regularly 
weighted formula applicable to the 2017 tax year. Such election may only be     scheduled basis) taking place within the city as a result of the rendition of 
made during a corporation’s first taxable year commencing on or after Janu-     services by employees of the corporation, as athletes, entertainers, or per-
ary 1, 2018, and shall remain in effect until revoked by the corporation. See   forming artists, are entered in the New York City column to the extent that 
Administrative Code sections 11-654(3)(a)(10)(xii) and 11-654(3)(a)(10)(ix).    those receipts are attributable to such transmissions received or exhibited 
For more on this election, see the instructions for Form NYC-2, Schedule F.     within the city. 
                                                                                 
When completing this form, include only the receipts, net income, net gains,    SECTION 11-654.2(4) – RECEIPTS FROM SALE OF, LICENSE TO 
and other items described in Administrative Code §11- 654.2 that are earned     USE, OR GRANTING OF REMOTE ACCESS TO DIGITAL PROD-
in the regular course of business and included in your business income, de-     UCTS 
termined without regard to the amount subtracted on Schedule B, line 23          
(Subtraction modification for qualified banks) and without regard to any        Line 7 – For Subchapter 3-A allocation purposes, the term digital product 
amount from investment capital that is determined to exceed the 8% of ENI       means any property or service, or combination thereof, of whatever nature 
limitation on gross investment income.                                          delivered to the purchaser through the use of wire, cable, fiber-optic, laser, 
                                                                                microwave, radio wave, satellite or similar successor media, or any combi-
Note:  Generally, receipts from services are reported on line 52 (Receipts      nation of these. Digital product includes, but is not limited to, an audio work, 
from other services/activities not specified).                                  audiovisual work, visual work, book or literary work, graphic work, game, 
                                                                                information or entertainment service, and storage of digital products. In ad-
Columns A and B – New York City (column A) amounts are determined               dition, it includes computer software by whatever means delivered. The term 
per the specific line instructions. Everywhere (column B) amounts should be     delivered to includes furnished or provided to or accessed by. A digital prod-
100% of the  item being reported on a line unless otherwise specified. If only  uct does not include legal, medical, accounting, architectural, research, an-
one line of this form  applies to your business, you must still complete both   alytical, engineering or consulting services. 
columns for that  line. The amounts entered in either column cannot be less      
than zero. Skip a line only if both the numerator (column A) and the de-        If the receipt for a digital product is comprised of a combination of digital 
nominator (column B) are zero.                                                  property and services, it cannot be divided into separate components and is 
                                                                                considered to be one receipt, regardless of whether it is separately stated for 
Failure to properly complete this form may result in the imposition of a        billing purposes.  The entire receipt must be allocated according to a hierar-
100% business allocation factor.                                                chy (see below). 
                                                                                 
SECTION 11-654.2(2) – SALES OF TANGIBLE PERSONAL PROP-                           Receipts from the sale of, license to use, or granting of remote access to 
ERTY, ELECTRICITY AND NET GAINS FROM REAL PROPERTY                              digital products within the city, are determined according to the following 
                                                                                hierarchy: 
Line 1 – Receipts from the sale of tangible personal property are included       
in the New York City column when shipments are made to points in the city,      1) The customer’s primary use location of the digital product. 
or the destination of the property is a point in the city. Receipts from sales   
of tangible personal property and electricity that are traded as commodities,   2) The location where the digital product is received by the customer or 
as defined in IRC section 475, are included on line 27, in accordance with         is received by a person designated for receipt by the customer. 
§11-654.2(5)(a)(2)(ix).                                                          
 
Line 2 – Receipts from the sale of electricity are  included in the New York    3) The receipts fraction determined pursuant to Administrative Code §11-
City column when delivered to points in the city. Receipts from sales of tan-      654.2(4) for the preceding tax year for such digital product. 
gible personal property and electricity that are traded as commodities, as de-   
fined in IRC section 475, are included on line 27, in accordance with           4) The receipts fraction in the current tax year for those digital products 
§11-654.2(5)(a)(2)(ix).                                                            that can be sourced using the methods in items 1 and 2.

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 Instructions for Form NYC-2.5 - 2022                                                                                                            Page 2

Note: Item 3 does not apply to your first tax period that begins on or after      For tax years beginning on or after January 1, 2016, in the case of a regulated 
January 1, 2015, for which you are subject to Subchapter 3-A.                     investment company (RIC) that is not a captive RIC or a real estate invest-
The taxpayer must exercise due diligence under each method before reject-         ment trust (REIT) that is not a captive REIT, a qualified financial instrument 
ing it and proceeding to the next method in the hierarchy, and must base its      means a financial instrument of a type that is reported on lines 11 through 24, 
determination on information known to the taxpayer or information that            27, 29, or 30. Such instruments need not be marked to market to be QFI. A 
would be known to the taxpayer upon reasonable inquiry.                           QFI for a RIC or a REIT will not include a loan secured by real property, 
                                                                                  stock that is investment capital as defined in §11-652(4)(a), and stock that 
SECTION 11-654.2(5)(a)(1) – QUALIFIED FINANCIAL INSTRU-                           generates other exempt income as defined in §11-652(5-a). 
MENTS (QFIS), THE 8% METHOD                                                        
                                                                                  Taxpayers may elect to use the 8% fixed percentage method to allocate busi-
Line 8 – Aqualified financial instrument (QFI) means a financial instru-          ness receipts from QFIs. This election is irrevocable, appliesallto   QFIs, and 
ment of these types that is marked to market in the tax year by the taxpayer      must be made on an annual basis on the original timely filed return (deter-
under IRC section 475 or 1256.  Type (i) (reported on lines 11 and 12); Type      mined with regard to valid extensions of time for filing) by checking the 
(ii) (reported on lines 13-18); Type (iii) (reported on lines 19-21); Type (iv)   YES box on line 8. If you check the NO box or do not check either box but 
(reported on lines 22-24); Type (ix) (reported on line 27); Type(s) (viii) (re-   still allocate QFIs receipts by 8%, you will be considered to have made the 
ported on lines 29 and 30); and Type(s) (vii) (also reported on line 30).         election and to have checked the YES box. 
                                                                                   
If the taxpayer has in the tax year marked to market a financial instrument       Regardless of whether or not the 8% fixed percentage method is elected, 
within types (i),(ii),(iii), (iv)and (ix), then any financial instrument within   when any financial instrument has been marked to market that is reported on: 
that same type that has not been marked to market by the taxpayer under            
IRC section 475 or 1256 is also a QFI in the tax year. When a financial in-       a)   either line 11 or 12, then the boxes on both lines 11 and 12 must be 
strument within either types (viii) or (vii) is marked to market, not all fi-          marked; and all financial instruments reported on such lines are QFIs 
nancial instruments within type (viii) or (vii), respectively are QFIs, as             (Type (i) financial instruments); 
explained further below.                                                           
                                                                                  b)   any of lines 13 through 18, then the box above line 13 must be marked 
When reporting interest from “other” financial instruments on line 29, and             and all financial instruments reports on such lines are QFIs (Type (ii) 
net gains and other income from “other” financial instruments on line 30,              financial instruments); 
marking to market one “other” financial instrument does       not necessarily      
cause all “other” financial instruments to be QFIs.  It is an instrument by in-   c)   any of lines 19 through 21, then the box above line 19 must be marked, 
strument determination as to when “other “ financial instruments are of the            and all financial instruments reported on such lines are QFIs (Type (iii) 
same type.  Thus, you may have more than one type of “other” financial in-             financial instruments); 
struments reported on lines 29 and 30 , and some types may be QFI while            
some other types may not be QFI.                                                  d)   any of lines 22 through 24, then the box above line 22 must be marked 
                                                                                       and all financial instruments reported on such lines are QFIs (Type (iv) 
Line 30 can be used to report financial instruments under clause (vii) (divi-          financial instruments); 
dends and net gains from sales of stock or partnership interests)  or clause       
(viii) (“other” financial instruments) of §11-654.2(5)(a)(2), or both.  Line      e)   line 27, then the box above line 27 must be marked, and all financial 
30 will be used to report instruments under clause (vii) only when the fi-             instruments reported on line 27 are QFIs (Type (ix) financial instru-
nancial instrument is a QFI and the 8% fixed percentage method had been                ments); 
elected.  When any stock that is business capital has been marked to market,       
all stock that is business capital is a QFI (for exception see next paragraph     f)   Line 28, then the box above line 28 must be marked; 
immediately following).  When any partnership interest in a widely held or         
publicly traded partnership has been marked to market,        all partnership in- g)   Line 29, then the box above line 29 must be marked; 
terests in a widely held or publicly traded partnership are QFIs.  However,        
marking to market stock that is business capital does not cause partnership       h)   Line 30, due to clause (viii), then Section 11-654.2(5)(a)(2)(viii) box 
interests in a widely held or publicly traded partnership that are not marked          above line 30 must be marked; and  
to market to be QFIs. The same is true in regard to the marking to market of       
partnership interests in a widely held or publicly  traded partnership in re-     i)   Line 30, due to clause (vii), then the section marked 11-
spect to stock that is business capital.  When a financial instrument falling          654.2(5)(a)(2)(vii) box above line 30 must be  marked. 
under clause (viii) has been market to market, it does not necessarily cause       
all financial instruments under clause (viii) to be QFIs.  It is an instrument    A marked QFI box does not indicate which method of sourcing (8% fixed 
by instrument determination as to when instruments under clause (viii) are        percentage method or customer-based sourcing rule) is being used to allocate 
of the same type.  Thus, you may have more than one type of “other” fi-           such instruments.  Also, because lines 28, 29, and 30 may report more than 
nancial instruments under clause (viii) to report on line 30.  Marking to mar-    one type of financial instrument when the QFI box above line 28 is marked 
ket a financial instrument of the type under clause (vii) does     not cause      or one of the boxes above lines 29 and 30 is marked:  
financial instrument of the type under clause (viii) to be QFIs.  The same is      
true in regard to clause (viii) in respect to clause (vii).                       1)   in the case of line 28 it does not indicate that all financial instruments 
                                                                                       being reported on line 28 are QFIs, and 
 If the only loans that are marked to market under IRC section 475 or 1256 are     
loans secured by real property, then no loans are QFIs. Stock that is investment  2)   in the case of lines 29 and 30 it does not indicate that all financial in-
capital shall not be a QFI. A stock that generates other exempt income as de-          struments being reported on  line 29 or line 30 are QFIs. 
fined in section 11-652(5-a) and that is not, itself, marked to market under sec-  
tion 475 or section 1256 of the IRC, is not a QFI with respect to such other       
exempt income only, even if other stocks are marked to market in the tax year.

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 Instructions for Form NYC-2.5 - 2022                                                                                                        Page 3

GENERAL INSTRUCTIONS LINES 9 THROUGH 52                                         In the New York City column, include interest from loans not secured by 
                                                                               real property if the borrower is located in New York City. 
For all financial instruments that do not meet the definition of a QFI, or for  
instruments that meet the definition of a QFI but the 8% fixed percentage      In the Everywhere column, include interest from all loans  not secured by 
method election is not in effect, use the customer-based sourcing rules as     real property. 
detailed in the specific instructions for lines 9 through 27, 29 and 30.        
                                                                               Line 12 – For the New York City column, multiply net gains (not less than 
Regardless of whether or not the 8% fixed percentage method election is in     zero) from sales of loans not secured by real property by a fraction, the nu-
effect, Worksheets A, B, and C of these instructions compute certain amounts   merator of which is the amount of gross proceeds from sales of loans not se-
for lines 10, 12, 21, 24, 28, and 30 of this form.                             cured by real property to purchasers located within the city, and the 
                                                                               denominator of which is the amount of gross proceeds from sales of such 
For purposes of these allocation instructions, an individual is deemed to be   loans to purchasers located within and outside the city.  
located in New York City if his or her billing address is in the city. A busi-  
ness entity is deemed to be located in New York City if its commercial domi-   In the Everywhere, column, include the amount of net gains (not less than 
cile is located in the city.                                                   zero) from sales of loans not secured by real property within and outside the 
                                                                               city. 
Use the following hierarchy to determine the commercial domicile of a busi-     
ness entity, based on known information, or information that would be          Use Worksheet A at the end of these instructions. 
known upon reasonable inquiry:                                                  
                                                                               SECTION 11-654.2(5)(a)(2)(ii) – FEDERAL, STATE, AND MUNICI-
1)   The seat of management and control of the business entity.                PAL DEBT 
                                                                                
2)   The billing address of the business entity in the taxpayer’s records.     Lines 13 through 18 – Receipts are not included in column A (New York 
                                                                               City) unless you have made the election to allocate QFI receipts using the 
You must exercise due diligence before rejecting the first method and pro-     8% method. For lines 13,15, and 16, in the Everywhere column, enter 100% 
ceeding to the next method in this hierarchy.                                  of the applicable receipts regardless of if the 8% fixed percentage method 
                                                                               election was made. For lines 17 and 18, if the 8% fixed percentage method 
For purposes of these allocation instructions, registered securities broker or election was made, and the QFI box above line 13 is marked, enter 100% of 
dealer means a broker or dealer registered as such by the Securities and Ex-   the receipts constituting interest and net gains  from sales of debt instruments 
change Commission (SEC) or a broker or dealer registered as such by the        issued by other states or their political subdivisions in the Everywhere col-
commodities futures trading commission, and shall include an over-the-         umn. Otherwise enter 50% for lines 17 and 18 in the Everywhere column.. 
counter (OTC) derivatives dealer as defined under regulations of the SEC (17    
CFR 240.3b-12).                                                                Line 16— When netting gains and losses, only net the gains from federal, 
                                                                               New York State, and New York State political subdivisions debt.  Do not 
SECTION 11-654.2(5)(a)(2)(i) – LOANS                                           enter less than zero. 
A loan is secured by real property if 50% or more of the value of the collat-   
eral used to secure the loan (when valued at FMV as of the time the loan       Line 18— When netting gains against losses, only net the gains from other 
was originated) consists of real property.                                     states and their political subdivisions debt against the losses from other states 
                                                                               and their political subdivisions debt.  Do not enter less than zero. 
Line 9 – Include in the New York City column, interest from loans secured       
by real property located within the city. Include in the Everywhere column     SECTION 11-654.2(5)(a)(2)(iii) – ASSET-BACKED SECURITIES AND 
interest  from loans secured by real property located anywhere.                OTHER GOVERNMENT AGENCY DEBT 
                                                                                
Line 10 – For the New York City column, multiply the amount of net gains       Line 19 – In the  Everywhere column, enter 100% of the interest income 
(not less than zero) from sales of loans secured by real property by a frac-   from all: 
tion, the numerator of which is the amount of gross proceeds from sales of      
loans secured by real property located within the city, and the denominator    1)    Asset-backed securities issued by government agencies ; 
of which is the amount of gross proceeds from sales of such loans every-        
where. In the Everywhere column, include the amount of net gains (not less     2)    Other securities issued by government agencies, including but not lim-
than zero) from sales of loans secured by real property both within and out-         ited to securities issued by the Government National Mortgage Asso-
side New York City.                                                                  ciation (GNMA), the Federal National Mortgage Association (FNMA), 
                                                                                     the Federal Home Loan Mortgage Corporation (FHLMC), or the Small 
Use Worksheet A at the end of these instructions.                                    Business Administration (SBA); and 
                                                                                
                                                                               3)    Asset-backed securities issued by other entities. 
Line 11 –When the 8% fixed percentage method  is   elected (the box on line     
8 of this form is marked) and the QFI box on line 11 is marked, use such       In the New York City column, enter 8% of the amount in  the Everywhere 
method for all financial instruments to be reported on this line.              column. 
                                                                                
When the 8% fixed percentage method is not elected (the box on line 8 of       Line 20 – In the Everywhere column enter the result (but not less than zero) 
this form isnot marked),and the QFI box on line 11  is marked, use the cus-    of netting the gains and losses from all: 
tomer-based sourcing rule below for  all financial instruments to be reported   
on this line.                                                                  1)    Sales of asset-backed securities or other securities issued by govern-
                                                                                     ment agencies, including but not limited to securities issued by GNMA, 
When the QFI box on line 11 is not marked, use the customer-based sourc-             FNMA, FHLMC, or the SBA; and 
ing rule below for all financial instruments to be reported on this line.

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 Instructions for Form NYC-2.5 - 2022                                                                                                               Page 4

2)  Sales of other asset-backed securities that are sold through a registered  SECTION11-654.2(5)(a)(2)(vi) – INTEREST INCOME FROM FED-
    securities broker or dealer, or through a licensed exchange.               ERAL FUNDS 
                                                                                
In the New York City column, enter 8% of the  amount in the Everywhere         Line 26 – In the  Everywhere column, enter 100% of the net interest  from federal 
column.                                                                        funds. In  determining net interest from federal funds, deduct interest expense from 
                                                                               federal funds.  The resulting net interest cannot be less than zero. 
Line 21 – For the New York City column, multiply net gains (not less than       
zero) from sales of other asset-backed securities not reported on line 20 by   In the New York City column, enter 8% of the amount in the Everywhere column. 
a fraction, the numerator of which is the amount of gross proceeds from such    
sales to purchasers located in the city and the denominator of which is the    SECTION 11-654.2(5)(2)(ix) – NET INCOME FROM SALES OF 
amount of gross proceeds from such sales to purchasers located within and      PHYSICAL COMMODITIES 
                                                                                
outside the city.                                                              Line 27 – For the New York City column, multiply the net income from 
                                                                               sales of physical commodities by a fraction, the numerator of which is the 
In the Everywhere column, enter 100% of the amount of net gains (not less      amount of receipts from sales of physical commodities actually delivered to 
than zero) from sales of other asset-backed securities not reported on line    points within the city or, if there is no actual delivery of the physical com-
20.                                                                            modity, the amount sold to purchasers located in the city, and the denomi-
                                                                               nator of which is the amount of receipts from all sales of physical 
Use Worksheet  A at the end of these instructions.                             commodities actually delivered to points within and outside the city or, if 
                                                                               there is no actual delivery of the physical commodity, the amount sold to 
SECTION 11-654.2(5)(a)(2)(iv) – CORPORATE BONDS                                purchasers located both within and outside the city. 
                                                                                
Line 22 – In the New York City column, enter interest from corporate bonds     Net income (not less than zero) from sales of physical commodities is de-
when the commercial domicile of the issuing corporation is in the city.        termined after the deduction of the cost to acquire or produce the physical 
                                                                               commodities.  
If the 8% fixed percentage method election has been made (the box on line       
8 is marked), and the QFI box above line 22 is marked, enter 8% of the ap-     In the Everywhere column, enter 100% of the net income (not less than zero) 
plicable receipts in the New York City column.                                 from sales of physical commodities. 
                                                                                
Line 23 –In the Everywhere column, enter the result (but not less than zero)   SECTION 11-654.2(a)(2)(x) – MARKED TO MARKET NET GAINS 
of netting the gains and losses from the sales of corporate bonds sold through  
a registered securities broker or dealer, or through a licensed exchange       Line 28 –All marked to market net gains are reported on this line for  all fi-
                                                                               nancial instruments. 
                                                                                
 In the New York City column, enter 8% of the  amount in the Everywhere 
                                                                               For the purposes of computing marked to market net gains for this line, 
column. 
                                                                               marked to market means that a financial instrument is treated by the tax-
 
                                                                               payer as sold for its FMV on the last business day of the taxpayer’s tax year, 
Line 24 – For the New York City column, multiply net gains (not less than 
                                                                               despite no actual sale having taken place, under IRC section 475 or 1256. 
zero) from those sales of corporate bonds not reported on line 23 by a frac-
                                                                               The term marked to market gain or loss means the gain or loss recognized 
tion, the numerator of which is the amount of gross proceeds from such sales 
                                                                               by the taxpayer under IRC section 475 or 1256 because the financial instru-
to purchasers located within the city, and the denominator of which is the 
                                                                               ment is treated as sold for its FMV on the last business day of the tax year.  
amount of gross proceeds from such sales to purchasers located within and       
outside the city.                                                              All marked to market net gains are reported on this line. When the 8% fixed 
                                                                               percentage method  iselected, use such method to source marked to market 
In the Everywhere column, enter the amount of net gains (not less than zero)   net gains for all financial instruments that are QFIs.  
from sales of corporate bonds to purchasers within and outside the city.        
                                                                               When the 8% fixed percentage method is elected, use the customer-based 
Use Worksheet A at the end of these instructions.                              sourcing rule below to source the marked to market net gains for those fi-
                                                                               nancial instruments that are not QFIs. Also, use the customer-based sourc-
SECTION 11-654.2(5)(a)(2)(v) – INTEREST INCOME FROM RE-                        ing rule below to source all  marked to market net gains for         all financial 
VERSE REPURCHASE AND SECURITIES BORROWING AGREE-                               instruments when the 8% fixed percentage method is not elected. 
MENTS                                                                           
                                                                               The amount of marked to market net gains ( to be included in the New York 
Line 25 – In the New York City column, enter 8% of net interest income         City column for financial instruments described on any certain line of this 
(not less than zero) from reverse repurchase agreements and securities bor-    form, is determined by multiplying such net gains  by a fraction, the nu-
rowing agreements. For this calculation, net interest income is determined     merator of which is the amount included in the numerator of the allocation 
after the deduction of the amount of interest expense from the taxpayer’s re-  fraction for the net gains from actual sales of financial instruments reported 
purchase agreements and securities lending transactions, but cannot be less    on the same certain line of this form, and the denominator of which is the 
than zero. The amount of such interest expense is the interest expense asso-   amount included in the denominator of the allocation fraction for the net 
ciated with the sum of the value of the taxpayer’s repurchase agreements       gains from actual sales of the financial instruments reported  on  that same 
where the taxpayer is the seller or borrower, plus the value of the taxpayer’s certain  line of this form. 
securities lending agreements where the taxpayer is the securities lender       
(provided such sum is limited to the sum of the value of the taxpayer’s re-    In the Everywhere column, enter 100% of the marked to market net gains  
verse repurchase agreements where the taxpayer is the purchaser or lender,     from financial instruments for which the amount to be included in the New 
plus the value of the taxpayer’s securities lending agreements where the tax-  York City column is determined under the immediately preceding paragraph. 
payer is the securities borrower).

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 Instructions for Form NYC-2.5 - 2022                                                                                                               Page 5

If financial instruments that are described on any certain line of this form,              instrument, where the purchaser or payor is located in New York City.  
have marked to market net gains, but there are no actual sales of financial in-            However, if the purchaser or payor is a registered securities broker or 
struments reported on thatsame certain line of this form,  orif thereare      ac-          dealer, or the transaction is made through a licensed exchange, then in-
tual  sales of financial instruments reported  on that same certain line of this           clude 8% of the Everywhere amount in the New York City column. 
form, but those actual sales resulted in a net loss, the amount of the marked          
to market net gains to include in the New York City column of line 28  for            •    For “other” income from “other” financial instruments, for the Every-
those same financial instruments is determined  by  multiplying   such                     where column, compute the “other” income (but not less than zero) 
marked to market  net gains  by a fraction, the numerator of which is the                  from a type of “other” financial instrument.  For the New York City 
sum of the amount entered in the New York City column on lines 9 through                   column, for the same   type of “other” financial instrument being re-
30, and the denominator of which is the sum of the amount of receipts en-                  ported in the Everywhere column, compute the “other” income (but not 
tered in the Everywhere column on lines 9 through 30 of this form.                         less than zero) for such same type of “other” financial instrument, 
                                                                                           where the purchaser or payor is located in New York City.  However, 
In the Everywhere column, enter 100% of the marked to market net gains                     if the purchaser or payor is a registered securities broker or dealer, or 
from financial instruments for which the amount to be included in the New                  the transaction is made through a licensed exchange, then include 8% 
York City column is determined under the immediately preceding paragraph.                  of the Everywhere amount in the New York City column. 
                                                                                       
Use Worksheet C at the end of these instructions.                                     Use Worksheet B at the end of these instructions. 
However, when sourcing the marked to market net gain from loans secured                 
by real property, always use customer-based sourcing (even when the 8%                SECTION 11-654.2(5)(b) – OTHER RECEIPTS FROM BROKER OR 
fixed percentage method election was made).  If using customer-based sourc-           DEALER ACTIVITIES 
ing to source such market to market net gains  when 11-654.2(5)(a)(2)(x)(C)           For the purposes of lines 31 through 37, securities has the same meaning as in 
applies, never include any amounts sourced under the 8% fixed percentage              IRC section 475(c)(2), and commodities has the same meaning as in IRC sec-
method election in computing the New York City aggregate marked to mar-               tion 475(e)(2). If the taxpayer receives any of the receipts reported on lines 31 
ket factor in Part 2 of Worksheet C.                                                  through 35 as a result of a securities correspondent relationship that the tax-
                                                                                      payer has with another broker or dealer (with the taxpayer acting in this rela-
SECTION 11-654.2(5)(a)(2)(viii) – INCOME FROM OTHER FINAN-                            tionship as the clearing firm), those receipts are deemed generated within the 
CIAL INSTRUMENTS                                                                      city to the extent set forth in §11-654.2(5)(b)(1) through §11-654.2(5)(b)(4). 
                                                                                      The amount of those receipts excludes the amount the taxpayer is required to 
Line 29 – When the 8% fixed percentage method  is      elected, use such method forpay to the correspondent firm for the correspondent relationship. If the tax-
all financial instruments to be reported on this line that are QFIs.  When the        payer receives any of the receipts reported on lines 31 through 35 as a result 
8% fixed percentage method  is elected, use the customer-based sourcing rule          of a securities correspondent relationship that the taxpayer has with another 
below for those financial instruments to be reported on this line that are not QFIs.  broker or dealer (with the taxpayer acting in this relationship as the introduc-
Also use the customer-based sourcing rule belowallfor   financial instruments toing firm), these receipts are deemed generated within the city to the extent set 
be reported on this line when the 8% fixed percentage method is not elected.          forth in 11-654.2(5)(b)(1) through §11-654.2(5)(b)(4). If the taxpayer is unable 
                                                                                      to determine the mailing address of the customer from its records, include 8% 
In the New York City column, enter interest from other financial instruments          of the receipts in the numerator of the allocation fraction. 
when the payor is located in New York City.                                            
                                                                                      Line 31 – In the New York City column, enter brokerage commissions de-
Line 30 –  More than 1 type of financial instrument may be reported on this           rived from the execution of securities or commodities purchase or sales or-
line.  Report financial instruments under clause (vii) or clause (viii) of §11-       ders for the accounts of customers if in the records of the taxpayer, the mailing 
654.2(5)(a)(2).                                                                       address of the customer responsible for paying the commissions is in the city. 
                                                                                       
Include clause (vii) financial instruments only when the 8% fixed percent-            Line 32 – In the New York City column, enter margin interest earned on be-
age method  iselected.  The following constitute clause (vii) instruments to          half of brokerage accounts if in the records of the taxpayer, the mailing address 
be included:                                                                          of the customer responsible for paying such margin interest is in the city. 
                                                                                       
•   Dividends and net gains from stock that is business capital if you have,          Line 33 – In the New York City column, enter the amount of fees for advi-
    in the tax year, marked to market any stock under IRC section 475 or              sory services to a customer in connection with the underwriting of securities 
    1256; provided that dividends that qualify as other exempt income                 for the entity that is contemplating issuing or is issuing securities, or fees 
    should not be included; and                                                       for managing an underwriting, if in the records of the taxpayer, the mailing 
 
•   Net gains from the sale of partnership interests in widely held or pub-           address of the customer responsible for paying such fees is in the city. 
                                                                                       
    licly traded partnerships if you have, in the tax year, marked to market          Line 34 – In the New York City column, enter the receipts constituting the 
    any partnership interest in a widely held or publicly traded partnership          primary spread of selling concession from underwritten securities if the cus-
    under IRC section 475 or 1256.                                                    tomer is located in the city. The term primary spread means the difference 
 
Customer-based sourcing rules for clause (viii) instruments included on line 30:      between the price paid by the taxpayer to the issuer of the securities being 
                                                                                      marketed and the price received from the subsequent sale of the underwrit-
•   For gains from “other” financial instruments, for the Everywhere col-             ten securities at the initial public offering price, less any selling concession 
    umn, net the gains from all sales of a  type of “other” financial instru-         and any fees paid to the taxpayer for advisory services or any manager’s 
    ment against the losses from all sale of the       same type of “other”           fees, if those fees are not paid by the customer to the taxpayer separately. The 
    financial instrument.  For the New York City column, for the same type            term public offering price means the price agreed upon by the taxpayer and 
    of “other” financial instrument being reported in the Everywhere col-             the issuer at which the securities are to be offered to the public. The term sell-
    umn, net the gains from all sale of such same type of “other” financial           ing concession means the amount paid to the taxpayer for participating in the 
    instrument , where the purchaser or payor is located in New York City,            underwriting of a security where the taxpayer is not the lead underwriter. 
    against the losses from all sales of such same type of “other” financial           
                                                                                      Line 35 – In the New York City column, enter account maintenance fees if

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 Instructions for Form NYC-2.5 - 2022                                                                                                          Page 6
in the records of the taxpayer, the mailing address of the customer responsi-      To determine the monthly percentage for each month, divide the number of 
ble for paying such account maintenance fees is in the city.                       shares in the investment company that are owned on the last day of the month 
                                                                                   by shareholders that are located in New York City by the total number of 
Line 36 – In the New York City column, enter fees for management or ad-            shares in the investment company outstanding on that date.  
visory services, including fees for advisory services in relation to merger or      
acquisition activities, if in the records of the taxpayer, the mailing address of  In the Everywhere column, enter 100% of the receipts received from an in-
the customer responsible for paying such fees is in the city. Exclude fees         vestment company arising from the sale of management, administration, or 
paid for services reported on line 43.                                             distribution services to the investment company. 
                                                                                    
Line 37 – Interest earned on loans and advances made by the taxpayer to a          For purposes of these receipts, the following apply: 
corporation affiliated with the taxpayer, but with which the taxpayer is not        
included in a combined return under Subchapter 3-A of Chapter 6 of Title 11        • An individual, estate or trust is deemed located in New York City if 
of the Administrative Code are deemed to arise from services performed at            his, her, or its mailing address in the records of the investment company 
the principal place of business of the affiliated corporation. If such principal     is in the city. A business entity is deemed located in New York City if 
place of business is in New York City, include the interest in the New York          its commercial domicile is located in the city. 
City column.                                                                        
                                                                                   • Investment company means a regulated investment company, as de-
SECTION 11-654.2(5)(c) – RECEIPTS FROM CREDIT CARD AND                               fined in IRC section 851, and a partnership to which IRC section 
SIMILAR ACTIVITIES                                                                   7704(a) applies (by virtue of section 7704(c)(3)) and that meets the re-
                                                                                     quirements of IRC section 851(b). This is applied to the tax year, for 
Line 38 through 42 —These lines are used by corporations that issue or               federal income tax purposes, of the business entity that is asserted to 
process credit cards and not by businesses that accept credit cards as pay-          constitute an investment company that ends within the tax year of the 
ment for goods and services.                                                         taxpayer. 
                                                                                    
Line 38 – In the New York City column, enter interest, fees, and penalties         • Receipts from an investment company includes amounts received di-
in the nature of interest from bank, credit, travel, and entertainment card re-      rectly from an investment company as well as amounts received from 
ceivables if in the records of the taxpayer, the mailing address of the card         the shareholders in the investment company, in their capacity as such. 
holder is in the city.                                                              
                                                                                   • Management services means the rendering of investment advice to an 
Line 39 – In the New York City column, enter service charges and fees from           investment company, making determinations as to when sales and pur-
such cards, if in the records of the taxpayer, the mailing address of the card       chases of securities are to be made on behalf of an investment com-
holder is in the city.                                                               pany, or the selling or purchasing of securities constituting assets of an 
                                                                                     investment company, and related activities, but only where such activ-
Line 40 – In the New York City column, enter receipts from merchant dis-             ity or activities are performed pursuant to a contract with the investment 
counts when the merchant is located within the city. If the merchant has lo-         company entered into according to the federal Investment Company 
cations both within and outside of New York City,      only receipts from            Act of 1940, section 15(a), as amended. 
merchant discounts attributable to sales made from locations within New             
York City are entered in the New York City column. The location of the mer-        • Distribution services means the services of advertising, servicing in-
chant is presumed to be the address of the merchant shown on the invoice             vestor accounts (including redemptions), marketing shares or selling 
submitted to the taxpayer by the merchant.                                           shares of an investment company; but in the case of advertising, servic-
                                                                                     ing investor accounts (including redemptions) or marketing shares, only 
Line 41 – In the New York City column, enter receipts from credit card au-           where such service is performed by a person who is (or was, in the case 
thorization processing, and clearing and settlement processing, received by          of a closed end company) also engaged in the service of selling such 
credit card processors if the location where the customer of the credit card         shares. In the case of an open-end company, the service of selling shares 
processor accesses the credit card processor’s network is located within the city.   must be performed pursuant to a contract entered into pursuant to the 
                                                                                     federal Investment Company Act of 1940, section 15(b), as amended. 
Line 42 – For the New York City column, multiply the total amount of all            
other receipts received by credit card processors not reported on lines 1          • Administration services includes clerical, accounting, bookkeeping, data pro-
through 53b by the average of 8% and the percent of its New York City ac-            cessing, internal auditing, legal, and tax services performed for an invest-
cess points. The percent of New York City access points is the number of lo-         ment company, but only if the provider of such service or services during the 
cations within New York City from which the credit card processor’s                  tax year in which such service or services are sold also sells management or 
customers access the credit card processor’s network, divided by the total           distribution services (as defined above), to such investment company. 
number of locations in the United States where the credit card processor’s          
customers access the credit card processor’s network.                              SECTION 11-654.2(6) – RECEIPTS FROM RAILROAD  AND 
                                                                                   TRUCKING BUSINESSES 
SECTION 11-654.2(5)(d) – RECEIPTS FROM CERTAIN SERVICES                             
TO INVESTMENT COMPANIES                                                            Line 44 – For the New York City column, multiply receipts from the con-
                                                                                   duct of a railroad business or a trucking business (including surface railroad, 
Line 43 – For the New York City column, multiply the receipts received             whether or not operated by steam, subway railroad, elevated railroad, palace 
from an investment company arising from the sale of management, admin-             car or sleeping car business) by a fraction, the numerator of which is the 
istration, or distribution services to such investment company by a fraction,      miles in such business within the city during the period covered by this re-
the numerator of which is the sum of the monthly percentages determined for        turn, and the denominator of which is the miles in such business both within 
each month of the investment company’s federal tax year that ends within the       and outside the city during such period. 
tax year of the taxpayer (but excluding any month during which the invest-          
ment company had no outstanding shares), and the denominator of which is           SECTION 11-654.2(12) – RECEIPTS FROM OPERATION OF VESSELS  
the number of those monthly percentages.                                            
                                                                                   Line 45 – For the New York City column, multiply receipts from the oper-

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  Instructions for Form NYC-2.5 - 2022                                                                                                                                  Page 7
 ation of vessels by a fraction, the numerator of which is the aggregate num-                            • 100% of such receipts if both the pickup and delivery associated with 
 ber of working days of the vessels owned or leased by the taxpayer in terri-                              those receipts are made in the city; and 
 torial waters of the city during the period covered by this return, and the                              
 denominator of which is the aggregate number of working days of all ves-                                • 50% of such receipts if either the pickup or delivery associated with 
 sels owned or leased by the taxpayer during such period.                                                  those receipts is made in this city.  
                                                                                                          
 SECTION 11-654.2(7) – RECEIPTS FROM AVIATION SERVICES                                                     In the Everywhere column, enter the amount of receipts from all such activity. 
                                                                                                          
                                                                                                         Line 47 – Other aviation services – For the New York City and Every-
 Line 46 – Air freight forwarding – In the New York City column, enter                                   where columns, determine the portion of receipts from aviation services, 
 the receipts from the activity of air freight forwarding acting as principal                            other than services described in line 46 (but including the receipts of a qual-
 and like indirect air carrier receipts arising from that activity as follows:                           ified air freight forwarder, as described below) to enter by averaging lines 2, 
  
                                                                                                         4, and 6 in the worksheet below. 
                                        BUSINESS ALLOCATION FOR  AVIATION CORPORATIONS
                                                                                                                            AVERAGE FOR THE YEAR
                                                                                                          COLUMN A - NEW YORK CITY             COLUMN B - EVERYWHERE 
   1. Aircraft arrivals and departures  .................................................... 1.                                                                         
2.    New York City percentage (column A divided by column B) .......... 2.                                                                                                      % 
                                                                                                         
3.    Revenue tons handled ..................................................................  3.
4.    New York City percentage (column A divided by column B) .......... 4.                                                                                                      % 
                                                                                                         
5.    Originating revenue .......................................................................... 5. 
6.    New York City percentage (column A divided by column B)  .........   6.                                                                                                    % 
                                                                                                         
7.    Total of lines 2, 4 and 6 ..................................................................................................................................   7.          %

 8.   Allocation percentage (line 7 divided by three rounded to the nearest one hundredth of a percentage point)................. 8.                                             % 
9.    Enter 100% of receipts from other aviation services; also enter on line 47, in column B..........................  9.
10.   Multiply line 8 by line 9; also enter on line 47, in column A ......................................................................10. 
 Aircraft arrivals and departures means the number of landings and takeoffs                                line or airlines operated by such other corporation. 
 in the tax year, plus the number of air pickups and deliveries by such aircraft.                         
 Do not include arrivals and departures solely for maintenance, repair, or re-                           SECTION 11-654.2(8) – ADVERTISING: NEWSPAPERS/PERIODI-
 fueling (where no debarkation or embarkation of traffic occurs). Arrivals and                           CALS, TV/RADIO, AND OTHER MEANS 
 departures of ferry and personnel training flights, or in the event of emer-                             
 gency situations, are also not included. Arrivals and departures of flights                             Line 48 – For the New York City column, multiply receipts from sales of ad-
 transporting officers and employees receiving air transportation are included                           vertising in newspapers or periodicals by a fraction, the numerator of which 
 (but see Note below for exceptions) without regard to remuneration.                                     is the number of newspapers and periodicals delivered to points within the 
                                                                                                         city, and the denominator of which is the number of newspapers and peri-
 Note: The Commissioner of Finance may exempt from the calculation ar-                                   odicals delivered to points both within and outside the city. 
 rivals and departures of all non-revenue flights including flights involving                             
 the transportation of officers and employees receiving air transportation to                            Line 49 – For the New York City column, multiply receipts from sales of ad-
 perform maintenance or repair services, or where such officers or employ-                               vertising on television or radio by a fraction, the numerator of which is the 
 ees are transported in conjunction with an emergency situation or the inves-                            number of viewers or listeners within the city, and the denominator of which 
 tigation of an air disaster (other than on a scheduled flight).                                         is the number of viewers or listeners both within and outside the city. 
                                                                                                          
 Revenue tons handled by the taxpayer at airports means the weight, in tons, of                          Line 50 – For the New York City column, multiply receipts from sales of ad-
 revenue passengers (at 200 pounds per passenger) and revenue cargo first received,                      vertising not reported on either line 48 or 49 that is furnished, provided, or 
 either as originating or connecting traffic or finally discharged at an airport.                        delivered to or accessed by the viewer or listener through the use of wire, 
                                                                                                         cable, fiber-optic, laser, microwave, radio wave, satellite or similar succes-
 Originating revenue means revenue to the taxpayer from the transportation                               sor media, or any combination of these by a fraction, the numerator of which 
 of revenue passengers and revenue property first received by the taxpayer as                            is the number of viewers or listeners within the city, and the denominator of 
 originating or connecting traffic at airports.                                                          which is the number of viewers or listeners both within and outside the city. 
                                                                                                          
 A corporation is a qualified air freight forwarder with respect to another cor-                         SECTION 11-654.2(9) – RECEIPTS FROM THE TRANSPORTATION 
 poration if:                                                                                            OR TRANSMISSION OF GAS THROUGH PIPES 
                                                                                                          
 •    it owns or controls, either directly or indirectly, all of the capital stock                       Line 51 – For the New York City column, multiply receipts from the trans-
      of such other corporation; or if all of its capital stock is owned or con-                         portation or transmission of gas through pipes by a fraction, the numerator 
      trolled, either directly or indirectly, by such other corporation; or if all                       of which is the taxpayer’s transportation units within the city, and the de-
      of the capital stock of both corporations is owned or controlled, either                           nominator of which is the taxpayer’s transportation units both within and 
      directly or indirectly, by the same interests;                                                     outside the city.  
  
                                                                                                         A 
 •    it is principally engaged in the business of air freight forwarding; and                             transportation unit is the transportation of one cubic foot of gas over a 
 •    its air freight forwarding business is carried on principally with the air-
                                                                                                         distance of one mile.

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 Instructions for Form NYC-2.5 - 2022                                                                                                          Page 8
 SECTION 11-654.2(10) – RECEIPTS FROM OTHER SERVICES/AC-
 TIVITIES NOT SPECIFIED 
  
 Line 52 – In the New York City column, enter receipts from services and 
 other business receipts not reported on lines 1 through 53b, if the location of 
 the customer is within the city. The determination of the amount of receipts 
 included in the New York City column is made according to the Hierarchy 
 of methods below. 
  
 The taxpayer must exercise due diligence under each method described be-
 fore rejecting it and proceeding to the next method in the hierarchy, and must 
 base its determination on information known to the taxpayer, or information 
 that would be known to the taxpayer upon reasonable inquiry. 
  
 Hierarchy of methods 
  
  1)The benefit is received in this city. 
  2)Delivery destination. 
 3) The receipts fraction for such receipts within the city determined ac-
    cording to §11-654.2(10) for the preceding tax year. 
 4) The receipts fraction for the current tax year determined according to 
    §11-654.2(10) for those receipts that can be sourced using the hierar-
    chy of sourcing method in item 1 or 2. 
 Note: Item 3 does not apply to your first tax period that begins on or after 
 January 1, 2015, for which you are subject to Subchapter 3-A. 
  
 SECTION 11-654.2(11) – DISCRETIONARY ADJUSTMENTS 
  
 Line 53a –Discretionary adjustments.  If it appears that the allocation frac-
 tion determined according to §11-654.2 does not result in a proper reflection 
 of the taxpayer’s business income or capital within New York City, the Com-
 missioner of Finance is authorized in his or her discretion to adjust it, or the 
 taxpayer may request that the commissioner adjust it. This is done by: 
  • excluding one or more items in such determination, 
  • including one or more other items in such determination, or 
 •  any other similar or different method calculated to effect a fair and 
    proper allocation of the business income and capital reasonably attrib-
    uted to the city.  
  
    The party seeking the adjustment bears the burden of proof to demon-
    strate that the allocation fraction determined according to §11-654.2 does 
    not result in a proper reflection of the taxpayer’s business income or cap-
    ital within the city and that the proposed adjustment is appropriate. 
  
    Where you have received approval from the commissioner to make 
    such adjustment, use line 53a to report it. Do not use line 53a to report 
    an adjustment unless you have received the approval of the commis-
    sioner. If you have received the approval of the commissioner, you must 
    attach a copy of such approval to your return.  If you have not received       
                                                                                  WORKSHEET A —Gross proceeds factors and net gains—Form NYC-2.5, 
    the approval of the commissioner before filing this return, you must 
                                                                                  lines 10, 12, 21, and 24 
    file using the statutory rules for allocation. You may file an amended re-
    turn after you have received approval.                                         
                                                                                  GENERAL INFORMATION 
 SECTION 11-654.2(5-A) – GLOBAL INTANGIBLE LOW-TAXED INCOME                        
                                                                                  This worksheet computes the amounts for Form NYC-2.5, lines 10, 12, 21, 
 Line 53b – Enter in the Everywhere column the amount of Global Intangi-          and 24.  See the corresponding Form NYC-2.5  line instructions and also 
 ble Low-Taxed Income (GILTI) that constitutes business income for City           the specific instructions below.  In the instructions below, all lines refers to 
 tax purposes and was required to be included in federal gross income pur-        lines 10, 12, 21, and 24, and specific rows (a, b, c, d, or e) are indicated to 
 suant to IRC section 951A, less the corresponding IRC section 250(a)(1)(B)(i)    clarify which rows of these lines the specific instruction applies to. 
 amount as reduced by IRC section 250(a)(2) (if applicable). Note that GILTI       
 is considered business income if the underlying stock that generates the GILTI   LINE INSTRUCTIONS FOR WORKSHEET A 
 is business capital. GILTI amounts must not be included in the numerator of       
 your receipts factor. You must attach to your return a statement detailing your  Use the instructions for Condition 1 or Condition 2 below, whichever ap-
 computation of the amount of GILTI included in the Everywhere column, as           plies, however: 
 well as Forms 8992 and 8993 or pro forma Forms 8992 and 8993, and Sched-          
 ule I-1 of Form 5471. See Finance Memorandum 18-9.                               • for line 10, use the specific instructions under Condition 1 below and

- 9 -

Instructions for Form NYC-2.5 - 2022 Page 9
skip Condition 2.

• For lines 12, 21, and 24, when the receipts for a certain line are not
from QFIs (the QFI box pertaining to that specific line is not marked),
use the specific instructions under Condition 1 below.

Condition 1 —If the fixed percentage method for QFIs is not in effect (use
when Form NYC-2.5, line 8 box is not marked).

1.1 For all lines, rows a and b respectively, enter the total NYC and EW
gross proceeds amount for that line’s category of receipts; do not enter
an amount less than zero. In determining such total gross amounts for
each line, deduct any cost incurred to acquire the securities. When this
results in a negative proceed amount for an individual security reported
on a line, such negative amount is not limited to zero, and is netted
against any positive proceed amounts for securities also reported on
the same line.

1.2 For all lines, row c, divide the amount in row a by the amount in row
b, and enter the result rounded to four decimal places; however, if ei-
ther the amount in row a or the amount in row b is equal to zero enter
0. This is the NYC gross proceeds factor for each respective line. It is
used to compute the row e (NYC) amount for all lines.

1.3 For all lines, row d, enter the EW receipts for that line’s category of re-
ceipts, but if the result is less than zero enter 0.

1.4 For all lines, row e, multiply the factor in that line’s row c (the NYC
gross proceeds factor) by the amount in that line’s row d, and enter the
result. If the result is zero, enter 0.

Condition 2 – If the fixed percentage method for QFIs is in effect (use for
a specific line when NYC-2.5, line 8 box is marked and the QFI box
pertaining to that specific line is also marked)

2.1. Leave rows a through c blank, for such specific line(s).

2.2. For such specific lines, row d, enter the EW receipts for that line’s cat-
egory of receipts, but if the result is less than zero, enter 0.

2.3. In row e, for such specific line(s), multiply row d by 8% (.08) and
enter the result; however, if the result is an amount equal to zero, enter
0 in row e.

Where are the amounts calculated on Worksheet A entered?

The amounts entered or calculated in rows a, b, and c, for all lines, are only
used for Worksheet A calculations and do not get transferred to any other
form or worksheet. The amounts entered or calculated in rows d and e need
to be entered on Form NYC-2.5, as follows:

Amount from Worksheet A Amount is entered on
Line 10d (EW) ......................... NYC-2.5, line 10 EW (column B)

Line 10e (NYC) ........................ NYC-2.5, line 10 NYC (column A) WORKSHEET B – Net gains and other income – Form NYC-2.5, line 30

Line 12d (EW) ......................... NYC-2.5, line 12 EW (column B) GENERAL INFORMATION
Line 12e (NYC) ......................... NYC-2.5, line 12 NYC (column A)
This worksheet computes certain amounts for Form NYC-2.5, line 30. See
Line 21d (EW) ......................... NYC-2.5, line 21 EW (column B) the line 30 instructions in Form NYC-2.5, and also the specific instructions
below. In the instructions below, all lines refers to all lines 30.1 and 30.2, and
Line 21e (NYC) ......................... NYC-2.5, line 21 NYC (column A) lines 30.3, 30.4, 30.5, and 30, and specific rows (a or b) are indicated to clar-
Line 24d (EW) ......................... NYC-2.5, line 24 EW (column B) ify which rows of these lines the specific instruction applies to. Note: Lines
30.1 through 30.5 are specific to this worksheet only. Since Form NYC-2.5,
Line 24e (NYC) ......................... NYC-2.5, line 24 NYC (column A) line 30 is comprised of different types of receipts that have to be netted sep-

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 Instructions for Form NYC-2.5 - 2022                                                                                                         Page 10
arately, these receipts amounts are shown separately on lines 30.1 through        Step 1 – Lines 30.3 and 30.4, rows a (EW) and b (NYC) – If the fixed 
30.5.                                                                             percentage method for QFIs  is in effect and you have marked to marketany 
                                                                                  stock that is business capital under IRC section 475 or 1256 in the tax year, 
LINE INSTRUCTIONS FOR WORKSHEET B                                                 complete substep 1.1 below; otherwise leave lines 30.3 and 30.4 blank and 
                                                                                  continue with Step 2 below. 
Part 1                                                                             
                                                                                  1.1. Enter on line 30.3, row a, 100% of dividends from stock that is business 
Only clause (viii) receipts are reported in Part 1.                               capital, provided that dividends that qualify as other exempt income should 
                                                                                  not be included. Enter on line 30.4, row a, 100% of net gains from sales of 
Step 1 – Lines 30.1 and 30.2, row a – Regardless of whether or not the            stock that is business capital; if the amount is less than zero, enter 0. 
fixed percentage method is in effect for lines 30.1 and 30.2, for row a (EW),      
follow the applicable Form NYC-2.5, line 30 instructions to determine the            1.1.1.For lines 30.3 and 30.4, row,bmultiply row a   , for each respec-
amount of everywhere receipts, except that if the amount is less than zero,          tive line, by 8% (.08) and enter the result; however, if the result is an 
enter 0. When you have net gains from sales of more than one type of “other”         amount equal to zero, enter  0    in row b. 
financial instruments, use separate lines 30.1 to report sales of all “other”      
financial instruments of each such type. The same is true for lines 30.2 when     Step 2 – Line 30.5, rows a (EW) and b (NYC) – If the fixed percentage 
reporting other income from “other” financial instruments.                        method for QFIs is in effect, and you have marked to market any partnership 
                                                                                  interest in a widely held or publicly traded partnership under IRC section 
If you have receipts reportable on lines 30.1 or 30.2 from more than three        475 or 1256 in the tax year, complete substep 2.1, below; otherwise leave line 
separate types of “other” financial instruments, use an additional line 30.1 or   30.5 blank and continue with Totals of Parts 1 and 2 below. 
line 30.2 for each additional separate type of “other” financial instrument for    
which you have net gains (line 30.1) or other income (line 30.2); include the     2.1. Enter on line 30.5, row a, 100% of net gains from sales of partnership 
amounts from these additional lines in the same manner as you would for the       interests in widely held or publicly traded partnerships; if the amount is less 
three lines 30.1 and 30.2 provided on the worksheet, as you complete the          than zero, enter 0. 
steps below, as applicable.                                                        
                                                                                     2.1.1. In line 30.5, row b, multiply row a, for each respective line, by 
Step 2 – Complete lines 30.1 and 30.2, row b (NYC), using the instructions           8% (.08) and enter the result; however, if the result is an amount equal 
for Condition 1 or Condition 2, or both, as applicable.                              to zero, enter  0in row b. 
                                                                                   
Condition 1 – If the fixed percentage method for QFIs is not in effect (Form      Totals of Parts 1 and 2 
NYC-2.5, line 8 box isnot marked);  orif the receipts from line 30.1 or 30.2       
do not represent receipts from QFIs (see instructions for NYC-2.5, line 8):       Step 1 – Line 30, rows a and b 
                                                                                   
1.1. For such lines 30.1 and 30.2, row b, follow the applicable line 30 in-       2.1. For line 30, row a, enter the sum of the amounts in row a, lines 30.1 
structions to determine the amount of NYC receipts, except that if the            through 30.5. 
amount is less than zero, enter 0 . Use a separate line 30.1netfor gains from      
sales of all “other” financial instruments of each certain type, and use a sep-   2.2. For line 30, row b, enter the sum of the amounts in row b, lines 30.1 
arate line 30.2 for other income from all “other” financial instruments of        through 30.5. 
each certain type.                                                                 
                                                                                  Where are the amounts calculated on Worksheet B entered? 
Condition 2 – If the fixed percentage method for QFIs  isin effect (Form           
NYC-2.5, line 8 box is marked) and:                                               The amounts entered or calculated on lines 30.1 through 30.5 are used to 
                                                                                  compute the line 30 totals and do not get transferred to any other form or 
2.1. the clause (viii) QFI box is not marked on Form NYC-2.5, above line          worksheet; the line 30 totals need to be entered on Form NYC-2.5 as follows: 
29, then lines 30.1 and 30.2, row  b, are completed in the same manner as if       
the fixed percentage method is not in effect (see above instructions).            Amount from Worksheet B        Amount is entered on 
 
2.2. the clause (viii) QFI box  ismarked on Form NYC-2.5, above line 29,          Line 30b (Total NYC)................ Form NYC-2.5, line 30 NYC (column A) 
and the receipts to be reported on a line 30.1 or 30.2 represent receipts from    Line 30a (Total EW)................... Form NYC-2.5, line 30 EW (column B)  
QFIs (see instructions for NYC-2.5, line 8), then for such lines 30.1 or 30.2,     
row b, multiply row a, for each respective line, by 8% (.08) and enter the re-     
sult; however, if the result is an amount equal to zero, enter  0  in row b . Use  
a separate line 30.1 for net gains from sales of all “other” financial instru-     
ments of each certain type, and use a separate line 30.2 for other income          
from all “other” financial instruments of each certain type.                       
                                                                                   
Part 2                                                                             
                                                                                   
Only clause (vii) receipts are reported in Part 2.                                 
                                                                                   
Part 2 of Worksheet B must    only be completed  ifthe fixed percentage            
method for QFIs  isin effect. If Form NYC-2.5, line 8 box isnot marked,            
leave lines 30.3, 30.4, and 30.5 blank and continue with    Totals of Parts 1      
and 2   instructions below; otherwise continue with Step 1 below.

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 Instructions for Form NYC-2.5 - 2022 Page 11
 
WORKSHEET C – Marked to market (MTM) net gains – Form NYC-
2.5, line 28 
 
GENERAL INFORMATION 
 
Note: You must first complete Worksheets A and B, and lines 9 through 27, 
29, and 30 of Form NYC-2.5; then, follow the steps below, in order, to com-
plete Worksheet C. 
 
This worksheet computes the amounts for Form NYC-2.5, line 28. See the 
Form NYC-2.5, line 28 instructions and also the specific instructions below. 
For purposes of Worksheet C, §11-654.2(5)(a)(2)(x)(B) is referred to as x(B), 
and §11-654.2(5)(a)(2)(x)(C) as x(C). x(B) sources MTM net gains based 
on the sourcing of net gains from actual sales of financial instruments of 
the same type. x(C) is used when there are no actual sales of a type, or the 
actual sales of a type resulted in a net loss for that type. 
 
Part 1 of the worksheet computes MTM net gains for those financial in-
struments that are described on Form NYC-2.5, lines 10, 12, 16, 18, 20, 21, 
23, 24, 27, and 30, and that have been MTM. Row b is broken out into 
subcolumns for lines 10, 12, 16, 18, 20, 21, 23, 24, 27, and all lines 30. For 
each such line, only one of the subcolumns will apply for that line, depend-
ing on the sourcing rule that applies for that line; the subcolumns that do not 
apply should be left blank. 
 
Part 2 of the worksheet is generally only applicable if the 8% fixed per-
centage method for QFIs is not in effect. Provided however, that if the fixed 
percentage method for QFIs  isin effect, and you have MTM net gains re-
portable on line 10 of the worksheet, you may have to complete Part 2 of the 
worksheet, as instructed further below. Part 2 computes the NYC aggregate 
MTM factor. This factor is used to determine NYC MTM net gains under 
x(C) in Part 1, as per the specific line instructions under Customer-based 
sourcing below. 
 
Line instructions for Worksheet C 
 
If the fixed percentage method for QFIs  isin effect (Form NYC-2.5, line 8 
box  ismarked), youmust complete the steps under the8% fixed percentage 
method elected instructions below to complete Worksheet C. Do not com-
plete the steps under the Customer-based sourcing instructions, unless specif-
ically instructed to do so for a certain line. 
 
If the fixed percentage method for QFIs is not in effect (Form NYC-2.5, line 
8 box is not marked), you must complete the steps under the Customer-
based sourcing instructions below to complete Worksheet C. Do not com-
plete the steps under the 8% fixed percentage method elected instructions. 
 
Regardless of whether or not the fixed percentage method for QFIs is in ef-
fect, use a separate line 30 for MTM net gains from all “other” financial in-
struments of one same certain type. If you need more than three lines 30, use 
an additional line 30 for each separate type of “other” financial instrument 
for which you have MTM net gains; include the amounts from these addi-
tional lines in the same manner as you would for the three lines 30 provided 
on the worksheet, as you complete the steps below, as applicable.  
 
8% fixed percentage method elected 
 
When the 8% fixed percentage method for QFIs is in effect, follow the in-
structions for Condition 1 or Condition 2 below, whichever applies. When 
Condition 1 applies, only Part 1 of Worksheet C needs to be completed, and 
the Part 1, x(B) Totals section should be left blank. When Condition 2 ap-
plies, you may need to complete Part 2 of the worksheet and the Part 1, x(B) 
Totals section. 
 
Condition 1 – If you do not have MTM net gains reportable on line 10 of

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 Instructions for Form NYC-2.5 - 2022                                                                                                               Page 12
this worksheet, complete  steps 1 and 2 below (under these 8% fixed per-          Step 1 – Part 1, row a, and row b, subcolumn x(B) 
centage method elected instructions) and do not complete any of the steps          
under the Customer-based sourcing instructions.                                   1.1. In row a, lines 10, 12, 16, 18, 20, 21, 23, 24, 27, and all lines 30, enter 
                                                                                  100% of your MTM net gains for those financial instruments described on 
Condition 2 – If you have MTM net gains reportable on line 10 of this work-       each such line (and described further in the corresponding line instructions 
sheet, you must determine the amounts to enter on line 10 by completing the       in Form NYC-2.5), except that if the net amount is less than or equal to zero, 
applicable steps underCustomer-based sourcing for line 10 only. When              enter 0. 
Condition 2 applies:                                                               
                                                                                  1.2. Row b, subcolumn x(B) - Subcolumn x(B), lines 10, 12, 16, 18, 20, 
•    First, for line 10 only, complete steps 1.1 through 4.1.2 under Cus-         21, 23, 24, 27, and all lines 30, is used to compute NYC MTM net gains, for 
     tomer-based sourcing, (do not complete step 5).                              those financial instruments described on each such line, under the sourcing 
                                                                                  rules of x(B). Follow the steps below to compute the subcolumn x(B) 
•    Next, complete all of steps 1 and 2 below (under these 8% fixed per-         amounts. Complete substeps 1.2.1 through 1.2.4 for each line (10, 12, 16, 18, 
     centage method elected instructions) for all remaining lines (including      20, 21, 23, 24, 27, and all lines 30): 
     lines 30-STK and 30-Pship, if applicable).                                    
                                                                                       1.2.1. If the step 1.1 amount is equal to zero, for any line, enter  0 in row 
Step 1 – Part 1, rows a and b                                                          b, subcolumns x(B) and x(C), for that line. 
                                                                                        
1.1. Inrow a (EW), lines 12, 16, 18, 20, 21, 23, 24, 27, all lines 30, 30-Stk,         1.2.2. Foreach line for which row  aisnot equal to zero, determine if 
and 30-Pship, enter 100% of your MTM net gains for those financial in-                 you have actual everywhere sales that generated a net gain during the 
struments described on each such line (and described further in the corre-             tax year, for that type of financial instrument. You had    actual every-
sponding line instructions in Form NYC-2.5), except that if the net amount             where sales that generated a net gain during the tax year for a specific 
is less than or equal to zero, enter 0 .                                               type of financial instrument if there is an amount greater than zero re-
                                                                                       ported on that type of financial instrument’s corresponding line of Form 
Note: Use line 30 for MTM net gains from “other” financial instruments                 NYC-2.5, column  B(EW). However, for line 30, you hadactual every-
(§11-654.2(5)(a)(2)(viii)). If in the tax year you have MTMany stock under             where sales that generated anet   gain during the tax year for a type of 
IRC section 475 or 1256, use line 30-Stk for MTM net gains from sales of               financial instrument described in §11-654.2(5)(a)(2)(viii)  if there is an 
stock that is business capital (§11-654.2(5)(a)(2(vii)); otherwise leave line          amount greater than zero reported on Worksheet B, on line 30.1 (used 
30-Stk blank. If in the tax year you have MTMany partnership interest in a             to report thesame specific type of financial instruments), row a    .  
widely held or publicly traded partnership under IRC section 475 or 1256,               
use line 30-Pship for MTM net gains from sales of partnership interests in             1.2.3. Foreach line for which Worksheet C, row a     , isnot equal to zero, 
widely held or publicly traded partnerships (§11-654.2(5)(a)(2)(vii)); other-          if you did have actual everywhere sales that generated a net gain for the 
wise, leave line 30-Pship blank.                                                       same specific type of financial instrument described on such line (as 
                                                                                       determined in substep 1.2.2 above), enter in row b, subcolumn x(B), for 
1.2. Inrow b (NYC), subcolumn 8%, lines 12, 16, 18, 20, 21, 23, 24, 27,                such line, theproduct of: the amount in row  a   for such line, and a frac-
all lines 30, 30-Stk, and 30-Pship, multiply row a , for each respective line,         tion, the numerator and the denominator of which are determined as fol-
by 8% (.08) and enter the result; if the result is equal to zero, enter 0 . You        lows: 
must leaverow b, subcolumn x(B) and row b,subcolumn x(C) blank for                 
all such lines as they are not applicable when the 8% fixed percentage                 •     For all such lines (except line 30): the numerator of the fraction 
method sourcing  isin effect for QFIs.                                                       for such line (except line 30) is the amount from Form NYC-2.5, 
                                                                                             column A (NYC) of the corresponding line; and the denominator 
Step 2 – Part 1, line 28, rows a and b                                                       of the fraction for such line (except line 30) is the amount from 
                                                                                             Form NYC-2.5, column B (EW) of the corresponding line. How-
2.1. For worksheet line 28,row a, enter thesum of the amounts from row a                     ever, if the numerator so determined is equal to zero, enter  0. For 
for lines 10, 12, 16, 18, 20, 21, 23, 24, 27, all lines 30, 30-Stk, and 30-Pship.            line 30, see the specific line 30 instruction below. 
                                                                                        
2.2. For worksheet line 28, row b, enter the sum of all amounts from all ap-           •     Line 30 – The numerator of the fraction for any specific line 30 
plicable subcolumns in row b for lines 10, 12, 16, 18, 20, 21, 23, 24, 27, all               is the amount from Worksheet B, line 30.1 (used to report the same 
lines 30, 30-Stk, and 30-Pship.                                                              specific type of financial instrument), row b (NYC). The denom-
                                                                                             inator of the fraction for any specific line 30 is the amount from 
Customer-based sourcing                                                                      Worksheet B, line 30.1 (used to report the same specific type of fi-
                                                                                             nancial instrument), row a (EW). However, if the numerator so de-
Parts 1 and 2 of Worksheet C need to be completed when the 8% fixed per-                     termined is zero, enter 0. 
centage method for QFIs is not in effect. To complete Worksheet C in this          
instance, follow Steps 1 through 5 below, in that order.                               1.2.4. Foreach line for which row  a isnot equal to zero, if you didnot  
                                                                                       have actual everywhere sales that generated a    net gain for the  same 
Note: Lines 30-Stk and 30-Pship should not be completed as these lines are             specific type of financial instrument described in that line (as deter-
not applicable when customer-based sourcing is used (§11-                              mined in substep 1.2.2 above), leave row b, subcolumn x(B) blank for 
654.2(5)(a)(2)(vii)).                                                                  that line. 
                                                                                   
If the fixed percentage method for QFIs  is  in effectand you have MTM net        Step 2 – Part 1, x(B) Total EW, and x(B) Total NYC 
gains reportable on worksheet line 10, then you must use customer-based            
sourcing for the MTM net gains for line 10 only. In this instance follow the      When you have completed Part 1, row a, and row b subcolumn x(B), for 
instructions for Condition 2 under the 8% fixed percentage method elected         lines 10, 12, 16, 18, 20, 21, 23, 24, 27, and all lines 30, you must next com-
instructions, above.                                                              plete the x(B) Total lines for EW and NYC, which are below line 30-Pship.

- 13 -

 Instructions for Form NYC-2.5 - 2022                                                                                             Page 13
The x(B) totals are needed to calculate the NYC aggregate MTM factor in         to compute the line 28 MTM totals in Part 1 and do not get transferred to any 
Part 2 of this worksheet, when applicable.                                      other form or worksheet; the line 28 totals from Part 1 need to be entered on 
                                                                                Form NYC-2.5 as follows: 
2.1. Enter in thex(B) Total EW line, thesum of the row  aamounts for all         
lines that have an amount entered in row  b,subcolumn x(B) even if the          Amount from Worksheet C      Amount is entered on 
amount entered is zero.                                                         Line 28b (NYC) ......................... Form NYC-2.5, line 28 NYC (column A) 
 
2.2. Enter in the x(B) Total NYC line, the sum of the row b, subcolumn x(B)     Line 28a (EW)............................ Form NYC-2.5, line 28 EW (column B) 
amounts for all lines that have an amount entered in row b, subcolumn x(B). 
 
Step 3 – Part 2 
 
Part 2 of the worksheet computes your NYC aggregate MTM factor which you 
will need in order to complete Part 1, row b, subcolumn x(C), when applicable.  
 
Never include any amounts sourced under the 8% fixed percentage method 
election when determining the amounts to include in the sums described in 
these step 3 instructions. 
 
3.1. Line A – Enter the sum of: the x(B) Total NYC amount from Part 1 of 
this worksheet plus the amounts from Form NYC-2.5, column A (NYC), 
lines 9 through 27, 29, and 30. 
 
3.2. Line B – Enter the sum of: the x(B) Total EW amount from Part 1 of 
this worksheet plus the amounts from Form NYC-2.5, column B (EW), lines 
9 through 27, 29, and 30. 
 
3.3. Line C – Divide the line A amount by the line B amount and enter the 
result, rounded to four decimal places.  
 
Step 4 – Part 1, row b, subcolumn x(C) 
 
4.1. Row b, subcolumn x(C) - Subcolumn x(C), lines 10, 12, 16, 18, 20, 
21, 23, 24, 27, and all lines 30, is used to compute NYC MTM net gains, for 
those financial instruments described on each such line, under the sourcing 
rules of x(C). Follow the steps below to compute the subcolumn x(C) 
amounts. Complete substeps 4.1.1 and 4.1.2 for each line (10, 12, 16, 18, 
20, 21, 23, 24, 27, and all lines 30): 
 
 4.1.1. For each line, if there is an amount greater than or equal to zero 
 entered in row b, subcolumn x(B), then leave row b, subcolumn x(C) 
 blank for that line. Note: When you had      actual everywhere sales that 
 generated a net gain for that type of financial instrument during the tax 
 year, subcolumn x(B) should have an amount entered, and subcolumn 
 x(C) should be left blank. 
  
 4.1.2. For each line, if you did not have    actual everywhere sales that 
 generated a net gain for the   specific type of financial instrument  de-
 scribed on that line (row b, subcolumn x(B) was left blank per substep 
 1.2.4), enter in row b, subcolumn x(C), for  that line, the    product of: 
 the amount in row a (EW) for that line, and the factor in Part 2, line C. 
 
Step 5 – Part 1, line 28, rows a and b 
 
5.1. For line 28,row a (EW), enter the sum of the amounts from row  a  (EW) 
for lines 10, 12, 16, 18, 20, 21, 23, 24, 27, and all lines 30. 
 
5.2. For line 28, row b (NYC), enter the sum of all amounts from row b 
(NYC), subcolumns x(B) and x(C) for lines 10, 12, 16, 18, 20, 21, 23, 24, 
27, and all lines 30.  
 
Where are the amounts calculated on Worksheet C entered? 
 
The amounts entered or calculated on Part 1, lines 10, 12, 16, 18, 20, 21, 23, 
24, 27, 30, 30-Stk, and 30-Pship and Part 2, lines A, B, and C are only used 
                                                                                                                           NYC-2.5 Instructions - 2022

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