2016 - Forms corrections and changes (posted in 2016)

• If the decedent possessed a cause of action or was a plaintiff in any litigation at the time of death, mark an X in the box and complete Schedule F (see Form ET-706-I, Instructions for Form ET-706)

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.

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.

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.

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.

The instructions are not being revised.

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:... “.

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.”

“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:...“.

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.”