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Form NYC-204EZ - 2022 Page 3
INSTRUCTIONS
Who may use this form - This form is for certain partnerships, including gaged solely in the purchase, holding or sale of property,
limited liability companies treated as partnerships for federal income tax transactions in positions in property, or the acquisition, hold-
purposes, who are required to file an Unincorporated Business Tax Return ing or disposition, other than in the ordinary course of busi-
but have no tax liability. For taxable years beginning on or after January ness, of interests in other unincorporated entities that are
1, 2009, a partnership engaged in an unincorporated business is required themselves engaged solely in the foregoing activities. NOTE:
to file an Unincorporated Business Tax return if its unincorporated busi- entities receiving $25,000 or less of gross receipts from other
ness gross income is more than $95,000. This form may also be used by activities may still be eligible for this exclusion. Ad. Code §11-
a partnership that is not required to file but wishes to disclaim any liability 502(c)(3). However, entities eligible for the partial self-trad-
for tax because it is engaged solely in activities exempt from the tax. ing exemption under Ad. Code §11-502(c)(4) are not eligible
for this exclusion and may not use this form.
You may not use this form if:
u You have NYC modifications other than the addback of income and Un- (ii) for taxable years beginning on or after July 1, 1994, exclude
incorporated Business Taxes on Schedule B, line 13(a) of Form NYC-204. the income, gain or loss from real property held to produce
For a complete list of modifications, see instructions for Form NYC-204. rental income or from the disposition of such property by an
entity, other than a dealer. Also exclude income or loss from
u You allocate total business income within and without NYC. (If you al- a business conducted at the property solely for the benefit of
locate 100% of your business income to NYC, you may use this form.) tenants at the property that is not open to the public, and el-
u You claim a credit for Unincorporated Business Tax Paid (see Form igible income from parking services rendered to tenants. See
NYC-114.7) or other credits (see Forms NYC-114.5, NYC-114.6, NYC- Ad. Code §11-502(d).
114.8 or NYC-114.12). (iii) exclude the income or loss from any separate and distinct
u You claim a partial exemption for investment activities. (See instruc- activity carried on wholly outside of New York City.
tions to Form NYC-204 "Who is Subject to the Tax".) (iv) for tax years beginning on or after August 1, 2002, exclude
u You have any investment income or loss (See instructions for NYC- all of the federal taxable income of partnerships that receive
204, Schedule B, Lines 29 (a-f)). 80% or more of their gross receipts from charges for the pro-
vision of mobile telecommunications services to customers
u You claim any deduction for a net operating loss. (See Form NYC-204, and exclude a partner's distributive share of income, gains,
Schedule A, line 11.) losses and deductions from any partnership subject to tax
u Your unincorporated business gross income less the allowance for ac- under Ad. Code Title II, Ch. II as a “utility” as defined in Ad.
tive partners' services is more than $90,000. (See Form NYC-204, Code section 11-1101(6), including its share of separately re-
Schedule A, line 14.) ported items.
u For federal purposes, a portion of your business interest expense de- Line 7 A deduction may be claimed for reasonable compensation for
duction is disallowed under IRC §163(j). personal services rendered by the partners. The allowable de-
duction is the lower of (i) 20% of line 6 (if greater than zero) or (ii)
u For federal purposes, you have income under IRC sections 951A or 965. $10,000 for each active partner.
9/11/01-related tax benefits - Check the box marked “9/11/01-related tax Preparer Authorization - If you want to allow the Department of Finance
benefit” on this form if you claim any of the following benefits on your fed- to discuss your return with the paid preparer who signed it, you must check
eral return: (i) bonus depreciation or a deduction under IRC §179 for prop- the "yes" box in the signature area of the return. This authorization applies
erty in the Resurgence Zone, whether or not you file form NYC-399Z, (ii) only to the individual whose signature appears in the "Preparer's Use Only"
IRC §1033 treatment for property converted due to the attacks on the section of your return. It does not apply to the firm, if any, shown in that sec-
World Trade Center. Attach Federal forms 4562, 4684 and 4797 to this tion. By checking the "Yes" box, you are authorizing the Department of Fi-
return. See instructions for Form NYC 204, Sch. B, lines 14c and 19. nance to call the preparer to answer any questions that may arise during
Special Condition Codes - Check the Finance website for applicable spe- the processing of your return. Also, you are authorizing the preparer to:
cial condition codes. If applicable, enter the two character code in the box u Give the Department any information missing from your return,
provided on the form.
u Call the Department for information about the processing of your return
SPECIFIC INSTRUCTIONS or the status of your refund or payment(s), and
u Respond to certain notices that you have shared with the preparer
SCHEDULE A about math errors, offsets, and return preparation. The notices will
Line 2 Enter the net amount of the partners' distributive shares of income not be sent to the preparer.
and deduction items not included in line 1 but required to be re- You are not authorizing the preparer to receive any refund check, bind
ported separately on federal Form 1065. Attach a schedule. you to anything (including any additional tax liability), or otherwise repre-
sent you before the Department. The authorization cannot be revoked,
Line 3 Enter the amount of income and unincorporated business taxes however, the authorization will automatically expire no later than the due
imposed by New York City, New York State or any other taxing ju- date (without regard to any extensions) for filing next year's return. Fail-
risdiction that was deducted in computing the amounts on lines ure to check the box will be deemed a denial of authority.
1 or 2. Attach a schedule. Taxpayers are required to file Form
NYC-204 instead of this form if required to add back any pass Privacy Act Notification - The Federal Privacy Act of 1974, as amended,
through entity taxes when calculating entire net income. requires agencies requesting Social Security Numbers to inform individ-
Line 5 Enter on this line the amount included in line 4 that represents uals from whom they seek this information as to whether compliance with
the net income or net loss from an activity that is not an unincor- the request is voluntary or mandatory, why the request is being made and
porated business carried on by the taxpayer wholly or partly in how the information will be used. The disclosure of Social Security Num-
the City. See Instructions for Form NYC-204 "Who is Subject to bers for taxpayers is mandatory and is required by section 11-102.1 of
the Tax." For this purpose: the Administrative Code of the City of New York for tax administration pur-
poses and will be used to facilitate the processing of tax returns.
(i) exclude the income or loss of an entity, other than a dealer as
defined in Ad. Code §11-501(1), that, for its own account, en- 2022 NYC-204EZ
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