Receipts and net gains from the sale of tangible personal property

# (a)

Receipts and net gains (not less than zero) from the sale of tangible personal property are included in New York receipts if paragraph (1), (2), or (3) of this subdivision applies. All receipts and net gains (not less than zero) from the sale of tangible personal property are included in everywhere receipts.

# (1)

The property is shipped via common or contract carrier, irrespective of whether the shipment is arranged by the corporation or the purchaser, or via the corporation’s vehicle or other means of transportation, to a point in New York State. Where property is so shipped to a point outside New York State, the receipts from the sale of such property are not included in New York receipts unless the final destination of the property is a point in New York State. See subdivision (c) of this section regarding evidence of destination.

# (2)

The possession of the property is transferred to a purchaser or purchaser's designee at a point in New York State, unless the f i n a l destination of the property is a point outside New York State. Where possession of the property is transferred in New York State, it is presumed that the final destination is a point in New York State unless there is sufficient evidence to demonstrate that the final destination is a point outside New York State. See subdivision (c) of this section regarding evidence of destination.

# (3)

The possession of the property is transferred to a purchaser or purchaser's designee at a point outside New York State, where the final destination of the property is a point in New York State. Where possession of the property is transferred outside New York State, it is presumed that the final destination is a point outside New York State unless there is sufficient evidence to demonstrate that the destination is a point in New York State. See subdivision (c) of this section regarding evidence of destination.

# (b)

# (1)

To compute a gain or loss from the sale of tangible personal property, the corporation must subtract its adjusted basis in the tangible personal property from the sale price of the tangible personal property. If the sale price exceeds the adjusted basis, the result is a gain. If the sale price is less than the adjusted basis, the result is a loss.

# (2)

To determine the amount of net gains from sales of tangible personal property to be included in the numerator and denominator of the BAF, the corporation first must subtract the sum of all losses computed under paragraph (1) of this subdivision from the sum of all gains computed under such paragraph (1). If the result is equal to or less than zero, no amount is included in New York receipts and everywhere receipts. If the total amount of net gains (not less than zero) from sales of tangible personal property located in New York exceeds the net gains (not less than zero) from sales of tangible personal property located within and without New York State, the amount included in New York receipts is limited to the amount included in everywhere receipts.

# (c)

Examples of the types of evidence that ordinarily will be sufficient to demonstrate the final destination of property include:

# (1)

a bill of lading or other shipping document designating the final destination location, regardless of the F.O.B. point, and

# (2)

a purchase invoice designating the final destination location.

# (d)

For rules relating to receipts from sales of tangible personal property traded as commodities, see section 4-2.10 of this Subpart.

# (e)

Examples.
Example 1: Retail Corporation operates an online clothing store that serves the United
States. Customers purchase clothing via the website and the clothing is shipped to the customer’s home. Receipts from the sale of clothing shipped to locations within New York State are included in New York receipts. Receipts from the sale of clothing shipped to locations within and without New York State are included in everywhere receipts.
Example 2: Corporation A operates a car rental business in New York State and elsewhere in the United States. To keep its inventory up-to-date and make room for newer models, Corporation A sells some of its fleet of cars every year. The net gain (not less than zero) from these sales, which is properly reported as business income, shall be apportioned to New York State to the extent that the final destination of the cars sold is in New York. 100% of the net gains (not less than zero) are included in everywhere receipts.
However, the amount included in New York receipts is limited to the amount included in everywhere receipts.