20 NYCRR § 3-3.2
Taxable year in which income or deduction is included in ENI
# (a)
In general, the method of accounting used in computing taxable income for Federal income tax purposes is used in computing ENI. However, whenever the commissioner deems it necessary in order to properly reflect the ENI of the taxpayer, the commissioner may determine the taxable year or period in which any item of income or deduction shall be included, without regard to the method of accounting used by the taxpayer for Federal income tax purposes.
# (b)
Examples.
Example 1: A taxpayer has a contract for the construction of a building and the subsequent installation of equipment in that building. The contract covers a period in excess of one taxable year. The taxpayer keeps its books so as to reflect the total income derived from the contract in the taxable year in which the contract is finally completed, and reports its Federal taxable income accordingly. The commissioner may require the taxpayer to report the income from the contract on the basis of the percentage of completion in each taxable year, or some other appropriate basis.
Example 2: A foreign corporation sells its New York State real estate on an installment basis, and terminates its taxable status in New York State in the year of the sale. The full profit on the sale must be included in entire net income in the year of the sale.
Example 3: A foreign corporation sells its New York State real estate on an installment basis and terminates its taxable status in New York State in a subsequent taxable year prior to the receipt of all of its installment payments. The profit included in the remaining installment payments for the sale must be included in ENI in the year it terminates its taxable status in New York State.
Source: official source document (DTF adopted rule text, December 2023 corporate reform)
In this part (40 sections)
- 3-1.1 · Computation of tax
- 3-1.2 · Business income base tax
- 3-1.3 · Capital base tax
- 3-1.4 · Fixed dollar minimum tax
- 3-2.1 · Correcting distortions of income or capital
- 3-2.2 · Adjusting tax bases to period covered by report
- 3-2.3 · Fair market value
- 3-2.4 · Average value
- 3-2.5 · Use of dollar amounts in computing tax
- 3-3.1 · Definition of entire net income (ENI)
- 3-3.2 · Taxable year in which income or deduction is included in ENI
- 3-3.3 · Subtraction modifications for community banks and thrifts
- 3-3.4 · Royalty modification
- 3-4.1 · Definition of investment capital
- 3-4.2 · Constitutionally protected investment capital
- 3-4.3 · Investment capital identification procedures
- 3-4.4 · Presumed investment capital that fails the holding period…
- 3-4.5 · Definition of investment income
- 3-4.6 · Definition of other exempt income
- 3-4.7 · Attribution of interest deductions
- 3-4.8 · Safe harbor reduction election
- 3-5.1 · Definition of business capital and capital base
- 3-5.2 · Definition of business income and the business income base
- 3-6.1 · Examples. The following are examples intended to address only…
- 3-7.1 · New York investment capital gains or losses in taxable years…
- 3-7.2 · New York business capital gains or losses in taxable years…
- 3-7.3 · Capital losses sustained in taxable years beginning before…
- 3-7.4 · Capital losses sustained in taxable years beginning on or after…
- 3-7.5 · Application of New York net capital losses
- 3-7.6 · Rules for combined reports
- 3-7.7 · Record keeping
- 3-7.8 · Examples
- 3-8.1 · Definitions
- 3-8.2 · Computation of the unabsorbed net operating loss (UNOL)
- 3-8.3 · Examples
- 3-8.4 · PNOLC subtraction -- General
- 3-8.5 · Corporations that are not allowed a PNOLC subtraction
- 3-8.6 · Computation of PNOLC subtraction pool
- 3-8.7 · Computation of the PNOLC subtraction
- 3-8.8 · Impact of combined group changes on the PNOLC subtraction