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Instructions for Form NYC-1 - 2022 Page 9
(d) For tax years beginning on or before to With respect to property placed in service in tax- Computation and Allocation of Taxable Assets
December 31, 2017, the New York City NOL able years beginning before January 1, 1981, tax- A taxpayer is not subject to the tax on taxable
deduction was computed as if the corporation payers using a different adjusted basis, or a dif- assets for that portion of the tax year in which it
elected under IRC section 172 to relinquish ferent method of depreciation, for City tax pur- had outstanding net worth certificates issued to
the carryback provisions. poses than for federal tax purposes must make the following: the FDIC under 12 USC section
appropriate subtractions from federal taxable 1823(i); the RTC under 12 USC section
(e) The New York City NOL deduction may not income. Attach a schedule showing the adjust- 1823(c)(1), (2), or (3); or the FSLIC under former
exceed the allowable deduction for the tax year ments. See subdivisions (c) and (j)(2) of Ad. section 406(f)(5) of the Federal National Housing
under IRC section 172. For tax years begin- Code section 11-641 for details. Act, as amended, before its repeal.
ning before January 1, 2010, that amount is
augmented by the excess of the amount The amount of any grant received through either LINE 1 - AVERAGE VALUE OF
allowed as a New York City bad debt deduc- the COVID-19 Pandemic Small Business TOTAL ASSETS
tion over the federal bad debt deduction in Recovery Grant Program, pursuant to section-ff Compute the average value of total assets, which
each loss year (except to the extent such excess of the New York State Urban Development includes money or other property received from the
was previously deducted in computing ENI). Corporation Act, or the Small Business FSLIC or FDIC and interbank placements. The aver-
However, for loss years beginning on or after Resilience Grant Program administered by the age value of total assets is computed on a quarterly
January 1, 2010, there is no separate New York Department of Small Business Services, to the basis, or, at the option of the taxpayer, on a more fre-
City bad debt deduction, and, as a result, there extent the amount of either grant is included in quent basis, such as monthly, weekly or daily.
no longer is an excess amount with which to federal taxable income, should be included on
augment the deduction under IRC section 172. this line. Attach a schedule. Total assets means the average value of those
Amounts from such excess from loss years assets which are properly reflected on a balance
beginning before January 1, 2010, are not SCHEDULE C sheet, the income or expenses of which are prop-
affected. For more information, see Computation and Allocation of Alternative erly reflected (or would have been properly
“Treatment of Bad Debt Deductions,” above. Entire Net Income reflected if not fully depreciated or expensed or
depreciated or expensed to a nominal amount) in
(f) For tax years beginning on or before December LINE 1 - ENTIRE NET INCOME the computation of the taxpayer’s alternative
31, 2017, the NOL may be carried forward for Entire net income must be the same as that report- entire net income for the taxable year or in the
20 years. Losses incurred during taxable years ed on line 30 of Schedule B. Whatever election computation of the eligible net income of the tax-
beginning after December 31, 2017, can be car- the taxpayer makes concerning the IBF modifica- payer’s IBF for the taxable year.
ried forward indefinitely for federal purposes. tion to entire net income applies to the computa-
tion of alternative entire net income. Real and tangible personal property, such as
(g) Losses incurred during taxable years beginning buildings, land, machinery and equipment, is to
after December 31, 2017, may not be carried back. LINE 2 - INTEREST INCOME FROM SUB- be valued at cost. Intangible property, such as
loans, investments, coin and currency, is to be
SIDIARY CAPITAL
(h) The deduction for losses incurred during taxable valued at book value.
Enter the amount subtracted on line 22 of Schedule B.
years beginning after December 31, 2017, is lim-
ited to 80% of federal taxable income calculated LINE 2 - FDIC, FSLIC, OR RTC AMOUNT
LINE 3 - DIVIDEND INCOME FROM
as if the corporation had not made the election Include any amount of money or other property
SUBSIDIARY CAPITAL
pursuant to subchapter S of the IRC (without (whether or not evidenced by a note or other
Enter the amount subtracted (or, in the case of a
regard to the deduction). instrument) received from or attributable to
loss, added) on lines 23 and 24 of Schedule B.
These rules also apply to any corporation includ- amounts received from the FDIC or the RTC
ed in a consolidated group for federal purposes, LINE 4 - INTEREST INCOME under 12 USC section 1823(c); or the FSLIC
but filing on a separate basis for New York City Enter the amount subtracted on line 25 of Schedule B. under former section 406(f)(1), (2), (3), or (4) of
purposes. Those corporations should compute the Federal National Housing Act, as amended,
their NOLs and NOL deductions as if filing on a SCHEDULE D before its repeal.
separate basis for federal income tax purposes. Changes for 2011.
For tax years beginning on or after January 1, 2011, LINE 5 - NET WORTH RATIO
LINE 28 - OTHER SUBTRACTIONS the law concerning the computation and allocation The term net worth ratio means the percentage
A taxpayer which makes an adjustment to federal of taxable assets has been changed. All corpora- of net worth to assets on the last day of the tax
taxable income on line 26 must subtract any expens- tions subject to the Banking Corporation Tax, year. The term net worth means the sum of pre-
es of the IBF included on line 18 of Schedule F including corporations organized under the laws of ferred stock, common stock, surplus, capital
which were paid to foreign branches of the taxpay- a country other than the United States, must use reserves, undivided profits, mutual capital cer-
er and not included in federal taxable income. taxable assets as the alternative basis of tax and tificates, reserve for contingencies, reserve for
must complete Schedule D. loan losses, and reserve for security losses,
For tax years beginning on or after August 1, minus assets classified loss. The term assets
2002, corporations that are partners in partner- Another change is that, in addition to completing means the sum of mortgage loans, nonmortgage
ships that receive at least eighty percent of their lines 1 through 4 of Schedule D to determine allo- loans, repossessed assets, real estate held for
gross receipts from providing mobile telecommu- cated taxable assets, taxpayers also complete lines development, investment, or resale, cash,
nications services must exclude their distributive 5 and 6. Line 5 concerns a corporation’s net worth deposits, investment securities, fixed assets and
share of losses and deductions from any such ratio and line 6 concerns the percentage of mort- other assets (such as financial futures, goodwill,
partnership, including their share of separately gages included in total assets. Those results are and other intangible assets) minus assets classi-
reported items, from their federal taxable income entered on the chart in Schedule D to determine fied loss. In no event shall assets be reduced by
reported on line 1. the tax rate to use. The results are then transferred reserves for losses.
to line 3 of Schedule A.
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