- 2 -
|
Instructions for Form NYC-NOLD-UBTP - 2020 Page 2
Note: According to the federal Tax Cuts and operating loss deduction is determined by ref- LINE 5b
Jobs Act of 2017, net operating losses (NOL) erence to the allocation basis or method used This line should only be filled out for loss
generated during or after 2018 generally may in the year the loss was sustained, regardless years beginning on or after January 1, 2018.
no longer be carried back. These losses may of whether the unincorporated business was For the first loss year beginning on or after
be carried forward indefinitely; however each carried on both inside and outside New York such date, the amount on this line should
year’s NOL deduction will be limited to 80% of City during the current year. equal the amount on line 5a. For all subse-
taxable income (without regard to the deduc- quent loss years, deduct from line 5a the sum
tion). LINE1a of amounts entered on line 10 for prior loss
Enter the year ended date (MM-DD-YYYY) years beginning on or after January 1, 2018,
Note further that for UBT purposes, Admin. for the earliest loss year in column Year 1. and divide the result by the percentage on
Code §11-507(2)(c) decouples from the fed- line 9 of the current loss year.
eral Coronavirus Aid, Relief, and Economic LINE 1b
Security Act (CARES Act) provisions that Enter the amount of loss allocated to New LINES 7, 8, 9 and 10
temporarily reversed the Tax Cuts and Jobs York City for the loss year For limitations on the net operating loss de-
Act changes relating to net operating losses duction of a partnership where the interests
for federal purposes. See Finance Memoran- LINES 2 and 3 of the member partners have changed be-
dum 20-6 for more information. For purposes of completing line 2, the tween a loss year and the year for which the
amount of loss absorbed in a year is deter- deduction is claimed, refer to Section 11-
The schedule allows for up to five (5) loss mined without regard to changes in interests 507(2)(b) of the NYC Administrative Code
years. If the current year’s net operating loss of the member partners. and 19 RCNY Section 28-06(c)(3). If line 8 is
deduction is derived from more years, please marked “NO”, skip lines 9 and 10 for that loss
complete and attach separate schedule(s). LINE 5 year.
If the amount on Form NYC-204, Schedule
The net operating loss deduction allowable A, line 10 is a loss, enter "0." Enter on line 5 LINE 10
on Form NYC-204 is computed in the same the amount from Form NYC-204, Schedule Multiply the percentage on line 9 by the
manner for unincorporated business tax pur- A, line 10. On the column for any subsequent amount on line 6. The excess, if any, of the
poses as it would be for federal income tax loss year, enter on line 5 the amount from the amount on line 6 over the amount entered on
purposes if the unincorporated business were current year's Form NYC-204, Schedule A, line 10 is considered absorbed and is not
an individual taxpayer, but taking into account line 10, reduced by the sum of the amounts available as a carryover to another year.
only unincorporated business gross income entered on line 10 for any earlier loss years.
and unincorporated business deductions al- LINE 11
located to New York City of the unincorpo- LINE 5a Add the amounts on Line 10. Enter the total
rated business. This line should only be filled out for loss years here and on Form NYC-204, Page 1, Sched-
beginning on or after January 1, 2018. Enter ule A, Line 11.
If the unincorporated business was carried on on this line 80% of Form NYC-204, Schedule
both inside and outside New York City during A, line 10. Do not reduce this line for subse-
the year in which the net operating loss was quent loss years.
sustained, the allowable current year’s net
|