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20 NYCRR § 3-7.4

Capital losses sustained in taxable years beginning on or after January 1, 2015

Official textus-ny/regstax.ny.gov
Summarize

# (a)

In computing the business income base, taxpayers generally start with Federal taxable income that includes capital gains in excess of capital losses without differentiation between New York investment capital gains and losses and New York business capital gains and losses. For New York State purposes, taxpayers must ensure that investment capital losses do not offset business capital gains and that business capital losses do not offset investment capital gains when calculating the business income base.

# (b)

A corporation or combined group, in the case of a combined report, subject to tax under article 9-A must properly classify and separate any amount of Federal capital losses and Federal capital gains, as such terms are defined in IRC section 1222, into New York business capital gains or losses and New York investment capital gains or losses. To calculate the business income base, Federal taxable income must be increased by the amount of New York net investment capital loss that offsets New York net business capital gains. Similarly, to calculate the business income base, Federal taxable income must be increased by the amount of New York net business capital loss that offsets New York net investment capital gains.

# (c)

For any amount of Federal capital loss sustained in an article 9-A New York non-filing year that is used on a Federal return in an article 9-A New York filing year, Federal taxable income in that New York filing year must be increased by the amount of Federal capital loss that was used from that article 9-A New York non-filing year.

# (d)

For any amount of Federal capital loss sustained in a New York S year that is used on a Federal return in a New York C year, Federal taxable income in that New York C year must be increased by the amount of the Federal capital loss that was used from the New York S year.

# (e)

For any amount of Federal capital loss sustained in a non-captive REIT filing year that is used on a Federal return in a captive REIT filing year, Federal taxable income in that captive REIT filing year must be increased by the amount of the Federal capital loss that was used from the non-captive REIT filing year.

# (f)

For any amount of Federal capital loss sustained in a non-captive RIC filing year that is used on a Federal return in a captive RIC filing year, Federal taxable income in that captive RIC filing year must be increased by the amount of the Federal capital loss that was used from the non-captive RIC filing year.

# (g)

For any amount of Federal capital loss sustained in a non-captive REIT filing year that is used on a Federal return in a year that the corporation, trust, or association fails to meet the definition and requirements of a REIT, Federal taxable income in that filing year must be increased by the amount of the Federal capital loss that was used from the non-captive REIT filing year.

# (h)

For any amount of Federal capital loss sustained in a non-combinable captive insurance company filing year that is used on a Federal return in a combinable captive insurance company filing year, Federal taxable income in that non-combinable captive insurance company filing year must be increased by the amount of the Federal capital loss that was used from the combinable captive filing year.

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

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In this part (40 sections)
  1. 3-2.4 · Average value
  2. 3-2.5 · Use of dollar amounts in computing tax
  3. 3-3.1 · Definition of entire net income (ENI)
  4. 3-3.2 · Taxable year in which income or deduction is included in ENI
  5. 3-3.3 · Subtraction modifications for community banks and thrifts
  6. 3-3.4 · Royalty modification
  7. 3-4.1 · Definition of investment capital
  8. 3-4.2 · Constitutionally protected investment capital
  9. 3-4.3 · Investment capital identification procedures
  10. 3-4.4 · Presumed investment capital that fails the holding period…
  11. 3-4.5 · Definition of investment income
  12. 3-4.6 · Definition of other exempt income
  13. 3-4.7 · Attribution of interest deductions
  14. 3-4.8 · Safe harbor reduction election
  15. 3-5.1 · Definition of business capital and capital base
  16. 3-5.2 · Definition of business income and the business income base
  17. 3-6.1 · Examples. The following are examples intended to address only…
  18. 3-7.1 · New York investment capital gains or losses in taxable years…
  19. 3-7.2 · New York business capital gains or losses in taxable years…
  20. 3-7.3 · Capital losses sustained in taxable years beginning before…
  21. 3-7.4 · Capital losses sustained in taxable years beginning on or after…
  22. 3-7.5 · Application of New York net capital losses
  23. 3-7.6 · Rules for combined reports
  24. 3-7.7 · Record keeping
  25. 3-7.8 · Examples
  26. 3-8.1 · Definitions
  27. 3-8.2 · Computation of the unabsorbed net operating loss (UNOL)
  28. 3-8.3 · Examples
  29. 3-8.4 · PNOLC subtraction -- General
  30. 3-8.5 · Corporations that are not allowed a PNOLC subtraction
  31. 3-8.6 · Computation of PNOLC subtraction pool
  32. 3-8.7 · Computation of the PNOLC subtraction
  33. 3-8.8 · Impact of combined group changes on the PNOLC subtraction
  34. 3-8.9 · Examples
  35. 3-8.10 · Impact of certain corporate acquisitions on the PNOLC…
  36. 3-8.11 · Record-keeping
  37. 3-8.12 · Subsequent changes
  38. 3-9.1 · Definitions
  39. 3-9.2 · Net operating loss deduction
  40. 3-9.3 · Application of NOLs
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