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20 CRR-NY 3-4.2NY-CRR

STATE COMPILATION OF CODES, RULES AND REGULATIONS OF THE STATE OF NEW YORK

TITLE 20. DEPARTMENT OF TAXATION AND FINANCE

CHAPTER I. FRANCHISE AND CERTAIN BUSINESS TAXES

SUBCHAPTER A. BUSINESS CORPORATION FRANCHISE TAX

PART 3. METHODS OF COMPUTING TAX

SUBPART 3-4. TAX MEASURED BY THE MINIMUM TAXABLE INCOME BASE

20 CRR-NY 3-4.2

3-4.2 Definition of minimum taxable income.

Tax Law, § 208(8-B)

(a) Minimum taxable income means the entire net income, as defined in section 3-2.2 of this Part, of the taxpayer for the taxable year adjusted as follows:

(1) increased by the amount of Federal items of tax preference set forth in section 57 of the Internal Revenue Code (with the modifications set forth in subdivision [b] of this section);

(2) determined with the Federal adjustments described in subdivision (c) of this section; and

(3) increased by the New York net operating loss deduction otherwise allowed under Subpart 3-8 of this Part.

(b) The Federal items of tax preference referred to in subdivision (a)(1) of this section shall have the same meaning and be computed in the same manner as under section 57 of the Internal Revenue Code. Such Federal items of tax preference shall be modified by deducting “tax-exempt interest” and “accelerated depreciation or amortization on certain property placed in service before January 1, 1987”, as determined under sections 57(a)(5) and 57(a)(7) of the Internal Revenue Code, respectively.

(c) The Federal adjustments referred to in subdivision (a)(2) of this section shall have the same meaning and be computed in the same manner as under sections 56 and 58 of the Internal Revenue Code. Such Federal adjustments are as follows:

(1) “depreciation”, as determined under section 56(a)(1) of the Internal Revenue Code (any amount attributable to property for which the tax benefits of the accelerated cost recovery system are not available under article 9-A of the Tax Law by reason of section 3-2.3[a][17] of this Part shall not be included);

(2) “mining exploration and development costs”, as determined under section 56(a)(2) of the Internal Revenue Code;

(3) “treatment of certain long-term contracts”, as determined under section 56(a)(3) of the Internal Revenue Code;

(4) “installment sales of certain property”, as determined under section 56(a)(6) of the Internal Revenue Code;

(5) “circulation expenditures of personal holding companies”, as determined under section 56(b)(2)(C) of the Internal Revenue Code;

(6) “merchant marine capital construction funds”, as determined under section 56(c)(2) of the Internal Revenue Code;

(7) “disallowance of passive activity loss”, as determined under section 58(b) of the Internal Revenue Code; and

(8) “adjusted basis”, as it appears in section 56(a)(7) of the Internal Revenue Code, but without taking into account the references to section 56(a)(5) of the Internal Revenue Code.

20 CRR-NY 3-4.2

Current through February 28, 2023

End of Document

IMPORTANT NOTE REGARDING CONTENT CURRENCY: The "Current through" date indicated immediately above is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Administrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of NYS Rules.