Corporation tax up-to-date information for 2015 (Articles 9, 9-A, 13, and 33)
The following changes were not reflected on the forms for 2015 when they went to print
If any of the following updates impact a tax form for which you are responsible for filing, and you have not yet filed such form, you must incorporate these updates when filing such form.
If you have already filed such form, and one of the following updates affects a calculation previously reported, you must file an amended form reflecting such update.
Select a tax form from the following list to identify the changes affecting that form. If a form is not listed, there have been no changes affecting that form.
CT-3-I
CT-3-A-I
CT-3-S-I
CT-3.1-I
CT-3.2-I
CT-33-A-I
CT-33-D-I
CT-33-M-I
CT-43
CT-222-I
CT-225-I and CT-225-A-I
CT-600
CT-601
CT-641-I
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6) On page 16, Part 6, Line 8 instructions, first paragraph, add the following as a new 3rd sentence:
“Financial instruments reported on lines 29 and 30 are not necessarily all of one type.”5) On page 16, Part 6, line 8 instructions, add under item “b)” the following as a new paragraph:
“For lines 28, 29, and 30, when the QFI box next to the section heading above line 28 or line 29 is marked: 1) in the case of line 28 it does not indicate that all financial instruments being reported on line 28 are QFIs (marked to market net gains from loans secured by real property are reported on line 28, but such loans are never QFIs; all financial instruments for which marked to market net gains are reported on line 28 are QFIs, except for such loans); and 2) in the case of lines 29 and 30 it does not indicate that all financial instruments being reported on either line 29 or line 30 are QFIs (due to the fact that lines 29 and 30 may report more than one type of financial instrument). For lines 29 and 30 it is an instrument by instrument determination as to when “other” financial instruments are of the same type. When the 8% fixed percentage method is elected, use such method for all financial instruments, including financial instruments reported under §210-A.5(a)(2)(G), that are QFIs (see text added to the end of the line 30 instructions by previously issued CT-3-I update #2).”4) On page 18, first column, line 30 instructions, add as a 2nd paragraph after the previously issued CT-3-I update #2:
“When you have net gains/(losses) from sales of more than one type of “other” financial instruments, or net income/(loss) from more than one type of “other” financial instruments, you must compute the net gain (not less than zero), or net income (not less than zero) for each type separately.”3) On page 16, Part 6, Line 8 instructions, first paragraph, add the following sentence to the end of such first paragraph:
“A stock that generates other exempt income as defined in section 208.6-a, and that is not, itself, marked to market under section 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.”2) On page 18, first column, under the heading “Section 210-A.5(a)(2)(H) – Income from other financial instruments” line 30 instruction, add the following text to the end of the current instruction:
“If the fixed percentage method election has been made, include on this line:
- dividends and net gains from stock that is business capital if you have, in the tax year, marked to market any stock under IRC section 475 or 1256, provided that dividends that qualify as other exempt income should not be included; and
- net gains from the sale of partnership interests in widely held or publicly traded partnerships if you have, in the tax year, marked to market any partnership interest in a widely held or publicly traded partnership under IRC section 475 or 1256.”
1) On page 16, first column, add the following at the beginning of the first sentence of the 3rd paragraph under the heading “Section 210-A.5(a)(1) – Qualified financial instruments (QFIs), the 8% method” (the line 8 instruction):
“Regardless of whether or not the 8% fixed percentage method is elected,”so that such first sentence now reads:
“Regardless of whether or not the 8% fixed percentage method is elected, when any financial instrument has been marked to market that is reported on:...”
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12) On page 17, Part 6, Line 8 instructions, first paragraph, add the following as a new 3rd sentence: “Financial instruments reported on lines 29 and 30 are not necessarily all of one type.”
11) On page 17, Part 6, line 8 instructions, add under item “b)” the following as a new paragraph:
“For lines 28, 29, and 30, when the QFI box next to the section heading above line 28 or line 29 is marked: 1) in the case of line 28 it does not indicate that all financial instruments being reported on line 28 are QFIs (marked to market net gains from loans secured by real property are reported on line 28, but such loans are never QFIs; all financial instruments for which marked to market net gains are reported on line 28 are QFIs, except for such loans); and 2) in the case of lines 29 and 30 it does not indicate that all financial instruments being reported on either line 29 or line 30 are QFIs (due to the fact that lines 29 and 30 may report more than one type of financial instrument). For lines 29 and 30 it is an instrument by instrument determination as to when “other” financial instruments are of the same type. When the 8% fixed percentage method is elected, use such method for all financial instruments, including financial instruments reported under §210-A.5(a)(2)(G), that are QFIs (see second paragraph of line 30 instructions).”
10) On page 19, Part 6, line 28 instructions, add the following immediately after the current last sentence:
“However, when sourcing the marked to market net gain from loans secured by real property, always use customer-based sourcing (even when the 8% fixed percentage method election was made). If using customer-based sourcing to source such marked to market net gains, when §210-A.5(a)(2)(j)(iii) applies never include any amounts sourced under the 8% fixed percentage method election in computing the NYS aggregate marked to market factor in Part 2 of Worksheet C.”
9) On page 26, “Line instructions for Worksheet B”, “Part 1”, at end of “Step 1” instruction add as a new paragraph:
“When you have net gains from sales of more than one type of “other” financial instruments, report such sales using an additional line 30.1 to report each such type, and when you have “other” income from more than one type of “other” financial instruments, report such “other” income using an additional line 30.2 to report each such type. Include the amounts from these additional lines in the same manner as you would for the lines 30.1 and 30.2 provided on the worksheet, as you complete the steps below, as applicable.”
8) On page 26, “Line instructions for Worksheet B”, “Part 1”, “Step 2”, “Condition 2”, add new text to “2.2” so that first sentence reads as:
“the applicable QFI box is marked on Form CT-3-A, Part 6, for the applicable section heading above line 30, and the receipts to be reported on a line 30.1 or 30.2 represent receipts from QFIs, . . . “
7) On page 29, add the word “generally” to the sentence in the 2nd column that begins with “Part 2” so that such sentence now reads:
“Part 2 of the worksheet is generally . . . “
6) On page 29, “Line instructions for Worksheet C”, add text to the end of the last sentence of the first paragraph so that such last sentence now reads:
“Do not complete the steps under the Customer-based sourcing instructions, unless instructed otherwise elsewhere.”
5) On page 30, add as a new paragraph immediately above the box with “8% fixed percentage method sourcing”:
“Regardless of whether or not the fixed percentage method for QFIs is in effect, when you have marked to market gains/(losses) from more than one type of “other” financial instruments, use an additional line 30 for each separate type of “other” financial instruments for which you have marked to market gains/(losses); include the amounts from these additional lines in the same manner as you would for the line 30 provided on the worksheet as you complete the steps below, as applicable.”4) On page 17, Part 6, Line 8 instructions, first paragraph, add the following sentence to the end of such first paragraph: “A stock that generates other exempt income as defined in section 208.6-a, and that is not, itself, marked to market under section 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.”
3) On page 21, Worksheet for Part 6, line 47, the line 7, 8, and 9 text is changed to read:
“7 Add all percentage amounts in column D, lines 2, 4, and 6, then divide by three
8 Enter 100% of receipts from other aviation services; also enter on line 47b of Form CT-3-A or Form CT-3-A/BC, as applicable
9 Multiply line 7 by line 8; also enter on line 47a of Form CT-3-A or Form CT-3-A/BC, as applicable”Also, line 7 of the worksheet should have an entry area only for column D, NYS percentage. Thus, on line 7, the current entry area for column C, Everywhere, should be shaded, and column D, NYS percentage, should be unshaded. For line 8 of the worksheet, the current entry area should not appear as falling under column D, NYS percentage but, rather, should appear as a general entry area as line 9 of the worksheet appears.
2) On page 27, in the Step 2 instruction that begins on page 26, the reference to Step 3 should be changed to “Totals of Parts 1 and 2.”
1) On page 30, first column, first paragraph, in the parenthetical, the word “not” should appear before the word “marked,” so that the parenthetical reads “... (Form CT-3-A, Part 6, line 8 box is not marked), ...” -
5) On page 8, Part 6, Line 57 instructions, first paragraph, add the following as a new 3rd sentence:
“Financial instruments reported on lines 78 and 79 are not necessarily all of one type.”4) On page 8, Part 6, line 57 instructions, add under item “b)” the following as a new paragraph:
“For lines 77, 78, and 79, when the QFI box next to the section heading above line 77 or line 78 is marked: 1) in the case of line 77 it does not indicate that all financial instruments being reported on line 77 are QFIs (marked to market net gains from loans secured by real property are reported on line 77, but such loans are never QFIs; all financial instruments for which marked to market net gains are reported on line 77 are QFIs, except for such loans); and 2) in the case of lines 78 and 79 it does not indicate that all financial instruments being reported on either line 78 or line 79 are QFIs (due to the fact that lines 78 and 79 may report more than one type of financial instrument). For lines 78 and 79 it is an instrument by instrument determination as to when “other” financial instruments are of the same type. When the 8% fixed percentage method is elected, use such method for all financial instruments, including financial instruments reported under §210-A.5(a)(2)(G), that are QFIs (see text added to the end of the line 79 instructions by previously issued CT-3-S-I update #1).”3) On page 8, Part 6, Line 57 instructions, first paragraph, add the following sentence to the end of such first paragraph: “A stock that generates other exempt income as defined in section 208.6-a, and that is not, itself, marked to market under section 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.”
2) On page 8, second column, add the following at the beginning of the first sentence of the 3rd paragraph under the heading “Section 210-A.5(a)(1) – Qualified financial instruments (QFIs), the 8% method” (the line 57 instruction):
“Regardless of whether or not the 8% fixed percentage method is elected,”
so that such first sentence now reads:
“Regardless of whether or not the 8% fixed percentage method is elected, when any financial instrument has been marked to market that is reported on:...”
1) On page 10, first column, under the heading “Section 210-A.5(a)(2)(H) – Income from other financial instruments” line 79 instruction, add the following text to the end of the current instruction:
“If the fixed percentage method election has been made, include on this line:
- dividends and net gains from stock that is business capital if you have, in the tax year, marked to market any stock under IRC section 475 or 1256, provided that dividends that qualify as other exempt income should not be included; and
- net gains from the sale of partnership interests in widely held or publicly traded partnerships if you have, in the tax year, marked to market any partnership interest in a widely held or publicly traded partnership under IRC section 475 or 1256.”
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On page 2, Schedule B, the following should be added at the end of the definition for other exempt income, after the Tax Law citation: “Provided, however, that if a stock that generates other exempt income as defined in section 208.6-a is, itself, marked to market, and the 8% fixed percentage method election is made, no income from such stock is includible in other exempt income for that tax year. For information concerning marking to market, and the 8% fixed percentage method election, see the Part 6, line 8 instructions of Form CT-3-I, CT-3-A-I, or CT-3-S-I, as applicable.”
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On page 2, under the schedule C, line 5 instructions for the definition of total assets, and on page 3, under the Schedule D instructions for the definition of total assets, the 5th sentence is changed to read as follows: “For leased assets that are not properly reflected on a balance sheet, only leased real property is included in total assets, and such real property is valued at the annual lease payment multiplied by eight.”
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The line 74 instructions on page 7 should read: If you have other additions to FTI, you must complete Form CT-225-A, New York State Modifications (for filers of combined franchise tax returns). Enter the amount from Form CT-225-A, line 5.
The line 83 instructions on page 8 should read: If you have other subtractions from FTI, you must complete Form CT-225-A, New York State Modifications (for filers of combined franchise tax returns). Enter the amount from Form CT-225-A, line 10.
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The mailing address for Form CT-33-D has changed. The new address is in the (8/16) version of the instructions, Form CT-33-D-I. Follow this link to Form TP-32.1 to see the new mailing addresses for all Forms CT-33-D (for contracts with dates both before and after July 21, 2011). (Forms CT-33-D that were recently mailed to the older address have been forwarded.)
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The NYS Corporation Tax mailing address on page 1 was changed to: NYS CORPORATION TAX, PO BOX 15181, ALBANY NY 12212-5181. The previous PO Box 22038 is no longer valid. Revised instructions were posted on 5/12/16.
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As a result of recent legislation, the 2015 Form CT-43 has been revised. The revised form shows a box surrounding the form number CT-43 with a revision date of 4/16.
Article 9-A taxpayers who, as mortgagee, paid the special additional mortgage recording tax on residential mortgages in any tax year beginning on or after January 1, 2015, may elect to treat the unused portion of special additional mortgage recording tax credit attributable to such mortgages as an overpayment of tax to be credited or refunded, instead of as a carryforward. Any carryforward of the SAMRTC from a prior period, including credit earned under former Article 32 or Article 9-A in a tax year beginning prior to January 1, 2015, is not eligible to be refunded.
A residential mortgage is defined as a mortgage of real property that has been or will be principally improved by one or more structures containing a total of not more than six residential dwelling units, each with its own separate cooking facilities.
These changes are effective for tax years beginning on or after January 1, 2015, and only apply to special additional mortgage recording tax paid, on or after January 1, 2015, as mortgagee with respect to those residential mortgages.
If you are taxable under Article 9-A of the Tax Law and are claiming a credit for special additional mortgage recording tax paid on a residential mortgage, you should download the revised 2015 Form CT-43 for use. If you have filed your 2015 return including Form CT-43 prior to revision and are now eligible to claim a refund or caryforward of credit attributable to special additional mortgage recording tax paid on residential mortgages, you may file an amended 2015 return and use the revised Form CT-43.
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On page 4, the heading that reads Line 99 should read Line 98.
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There is a new subtraction code, S-509, to be used to report expenses attributable to income that is not in federal taxable income due to a tax treaty. This is for Form CT-3 and CT-3-A filers that are alien corporations only. Also see A-506.
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As a result of recent legislation, the ordering of tax credits under Article 9-A of the Tax Law has been amended. Any carry forward of EZ Wage Tax Credit or ZEA Wage Tax Credit used in 2015 must be entered on Form CT-600 in Section 4, on line 32, instead of Section 2, line 6.
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Line 3 should read as follows:
3 Fifty percent limitation (multiply line 2 by 50% (.5); see instructions if claiming a credit carryforward from more than one entity )On page 2 add instructions for Line 3 as follows:
Line 3 - For taxpayers claiming a wage tax credit carryforward from more than one entity on a return, such as on a combined franchise tax return, the aggregate amount of all the wage tax credits used in the current year cannot exceed 50% of the current year’s tax. Multiply line 2 by 50% (.5). From this result, subtract any wage tax credits claimed for this year that you wish to apply prior to the credit claimed on this form and enter that result on line 3. -
Chapter 60 of the Laws of 2016 amended the definition of real property tax for the manufacturer's real property tax credit. The amendment is effective for tax years beginning on or after January 1, 2014. The bolded text below has been added to the definition. The instructions will not be updated for this law change until 2016.
Real property tax means a charge imposed upon real property by or on behalf of a county, city, town, village, or school district for municipal or school district purposes, provided that the charge is levied for the general public welfare by the proper taxing authorities at a like rate against all property over which such authorities have jurisdiction, and provided that where taxes are levied pursuant to Real Property Tax Law, Article 18 or 19, the property must have been taxed at the rate determined for the class in which it is contained, as provided by such article, whichever is applicable.
The term real property tax includes taxes paid by the taxpayer on real property principally used during the tax year by the taxpayer in manufacturing where the taxpayer leases such real property from an unrelated third party if the following conditions are satisfied:
- the tax must be paid by the taxpayer as lessee pursuant to explicit requirements in a written lease, and
- the taxpayer as lessee has paid such taxes directly to the taxing authority and has received a written receipt for payment of taxes from the taxing authority.
A taxpayer principally engaged in the production of goods by farming, agriculture, horticulture, floriculture, viticulture, or commercial fishing that satisfies the above conditions, is eligible if the taxpayer leases such real property from a related or unrelated third party.
In the case of a combined group that constitutes a qualified New York manufacturer, the conditions in the preceding sentence are satisfied if one corporation in the combined group is the lessee and another corporation in the combined group makes the payments to the taxing authority.The term real property tax does not include a payment made by the taxpayer in connection with an agreement for the payment in lieu of taxes (PILOT) on real property, whether such property is owned or leased by the taxpayer.
The term real property tax does not include a charge for local benefits, including any portion of that charge that is properly allocated to the costs attributable to maintenance or interest, when:- the property subject to the charge is limited to the property that benefits from the charge;
- the amount of the charge is determined by the benefit to the property assessed; or
- the improvement for which the charge is assessed tends to increase the property value.
The instructions are not being revised to reflect this change.