20 NYCRR § 3-7.6

Rules for combined reports

Official textus-ny/regstax.ny.gov

# (a)

In computing the New York net capital loss of corporations included in a combined report pursuant to section 210-C, the New York net capital loss of the combined group is computed in accordance with this Subpart, substituting “combined group” for “corporation”.

# (b)

A member leaving a combined group must compute its own share of New York net business capital loss carryover and New York net investment capital loss carryover. New York net capital loss carryover is net capital loss that may be carried back or forward as the case may be.

# (1)

To compute the leaving member’s share of the New York net business capital loss carryover, multiply the combined group’s New York net business capital loss carryover for the taxable year by a fraction, the numerator of which is the total New York business capital losses for that taxable year of the leaving member and the denominator of which is the total New York business capital losses for that taxable year of all members of the combined group having such New York business capital losses to the extent such capital losses are included in the capital loss carryover amount of the combined group in accordance with this section.

# (2)

To compute the leaving member’s share of New York net investment capital loss carryover, multiply the combined group’s New York net investment capital loss carryover for the taxable year by a fraction, the numerator of which is the total New York investment capital losses for that taxable year of the leaving member and the denominator of which is the total New York investment capital losses for that taxable year of all members of the combined group having such New York investment capital losses to the extent such capital losses are included in the capital loss carryover amount of the combined group in accordance with this section.

# (c)

If a corporation is a member of a combined group for any taxable year beginning on or after January 1, 2015, and leaves that group in a later taxable year, the leaving member takes its share of the combined group’s New York net business capital loss carryover and New York net investment capital loss carryover. The remaining combined group must reduce its New York net business capital loss carryover and New York net investment loss carryover by the leaving member’s share of such loss carryovers. If the leaving corporation joins another combined group, its New York net business capital loss carryover is added to, or becomes, the new combined group’s New York net business capital loss carryover and its New York net investment capital loss carryover is added to, or becomes, the new combined group’s New York net investment capital loss carryover, subject to the rules in this Subpart. If the leaving corporation files a separate New York return, it is allowed to use its New York net business capital loss carryover or New York net investment capital loss carryover on a separate basis, subject to the rules in this Subpart.

# (d)

If a corporation that was subject to tax under article 9-A and was not a member of a combined group in any taxable year beginning on or after January 1, 2015, subsequently joins a combined group, that incoming member’s New York net business capital loss carryover is added to, or becomes, the combined group’s New York net business capital loss carryover and its New York net investment capital loss carryover is added to, or becomes, the combined group’s New York net investment capital loss carryover, subject to the rules in this Subpart.

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

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