Partnertax.ai Start free trial

20 NYCRR § 3-4.8

Safe harbor reduction election

Official textus-ny/regstax.ny.gov
Summarize

# (a)

In lieu of performing the attribution of interest deductions in section 3-4.7 of this Subpart, a corporation may elect to reduce the amount of gross investment income, gross exempt CFC income, and gross exempt other unitary corporation dividends by the safe harbor reduction amount, which is 40% of the respective gross income amount. If the corporation has gross exempt cross-article dividends, it must attribute interest deductions to such income using the methodology described in section 3-4.7 of this Subpart only as it relates to such exempt cross-article stock. In addition, the amounts of interest deductions directly attributable to gross investment income or investment capital, gross exempt CFC income, and gross exempt unitary corporation dividends are not subtracted from gross investment income, gross exempt CFC income, and gross exempt unitary corporation dividends, respectively.

# (b)

This election applies to gross investment income, gross exempt CFC income, and gross exempt other unitary corporation dividends. The absence of gross investment income, gross exempt CFC income, or gross exempt other unitary corporation dividends does not preclude the election being made.

# (c)

The election may be made or revoked by the taxpayer, or in the case of a combined group, the designated agent, by filing a tax return within the statute of limitations for each applicable tax year. Such method chosen by the taxpayer is binding on both the taxpayer and the department unless the taxpayer files an amended return within the statute of limitations for the applicable tax year to make a change.

Source: official source document (DTF adopted rule text, December 2023 corporate reform)

Report a problem

What's wrong?

Sent anonymously with this page's citation. No personal information is collected.
In this part (40 sections)
  1. 3-1.1 · Computation of tax
  2. 3-1.2 · Business income base tax
  3. 3-1.3 · Capital base tax
  4. 3-1.4 · Fixed dollar minimum tax
  5. 3-2.1 · Correcting distortions of income or capital
  6. 3-2.2 · Adjusting tax bases to period covered by report
  7. 3-2.3 · Fair market value
  8. 3-2.4 · Average value
  9. 3-2.5 · Use of dollar amounts in computing tax
  10. 3-3.1 · Definition of entire net income (ENI)
  11. 3-3.2 · Taxable year in which income or deduction is included in ENI
  12. 3-3.3 · Subtraction modifications for community banks and thrifts
  13. 3-3.4 · Royalty modification
  14. 3-4.1 · Definition of investment capital
  15. 3-4.2 · Constitutionally protected investment capital
  16. 3-4.3 · Investment capital identification procedures
  17. 3-4.4 · Presumed investment capital that fails the holding period…
  18. 3-4.5 · Definition of investment income
  19. 3-4.6 · Definition of other exempt income
  20. 3-4.7 · Attribution of interest deductions
  21. 3-4.8 · Safe harbor reduction election
  22. 3-5.1 · Definition of business capital and capital base
  23. 3-5.2 · Definition of business income and the business income base
  24. 3-6.1 · Examples. The following are examples intended to address only…
  25. 3-7.1 · New York investment capital gains or losses in taxable years…
  26. 3-7.2 · New York business capital gains or losses in taxable years…
  27. 3-7.3 · Capital losses sustained in taxable years beginning before…
  28. 3-7.4 · Capital losses sustained in taxable years beginning on or after…
  29. 3-7.5 · Application of New York net capital losses
  30. 3-7.6 · Rules for combined reports
  31. 3-7.7 · Record keeping
  32. 3-7.8 · Examples
  33. 3-8.1 · Definitions
  34. 3-8.2 · Computation of the unabsorbed net operating loss (UNOL)
  35. 3-8.3 · Examples
  36. 3-8.4 · PNOLC subtraction -- General
  37. 3-8.5 · Corporations that are not allowed a PNOLC subtraction
  38. 3-8.6 · Computation of PNOLC subtraction pool
  39. 3-8.7 · Computation of the PNOLC subtraction
  40. 3-8.8 · Impact of combined group changes on the PNOLC subtraction
Full table of contents →