Examples

Example 1: Corporation A is a New York S corporation that has the following types of receipts:
• dividends from stock of unitary corporations (that would have been characterized as other exempt income for a New York C corporation);
• dividends from stock of non-unitary corporations (that would have been characterized as investment income for a New York C corporation);
• net gains from sales of stock of non-unitary corporations (that would have been characterized as investment income for a New York C corporation);
• interest from loans secured by real property;
• interest from corporate bonds; and
• net gains from sales of corporate bonds.
Corporation A marks to market stock of non-unitary corporations only. No other assets are marked to market.
All of these receipts are considered business receipts for Corporation A.
The amount of such receipts included in Corporation A’s New York receipts or everywhere receipts is determined in accordance with section 9-3.1 of this Subchapter.
Corporation A did not make the fixed percentage election. Therefore, dividends and net gains from stock are not included in its New York receipts or everywhere receipts pursuant to section 210-A.5(a)(2)(G) and the amount of interest from loans secured by real property, interest from corporate bonds, and net gains from the sale of corporate bonds included in New York receipts or everywhere receipts is determined in accordance with section 210-A.5(a)(2) and this Subchapter.
To determine the amounts derived from New York sources for purposes of article 22, nonresident shareholder X of Corporation A must multiply its pro-rata share of Corporation A’s items of income, gain, loss, and deduction that are included in shareholder X’s New York adjusted gross income, including all income, gain, and loss from Corporation A’s stocks, loans, and corporate bonds by Corporation A’s apportionment factor.
Example 2: Same facts as Example 1 except that Corporation A makes the fixed percentage election. Since one stock has been marked to market, all stock are qualified financial instruments. The result is that 8% of the dividends and net gains (not less than zero) from stocks are included in Corporation A’s New York receipts and 100% of dividends and net gains (not less than zero) from stock are included in everywhere receipts. The loans and corporate bonds are not qualified financial instruments as none of these assets have been marked to market. The amount of interest from the loans secured by real property, interest from corporate bonds, and net gains from the sales of corporate bonds included in New York receipts or everywhere receipts is determined in accordance with section 210-A and this Subchapter To determine the amounts derived from New York sources for purposes of article 22, nonresident shareholder X of Corporation A must multiply its pro-rata share of Corporation A’s items of income, gain, loss, and deduction that are included in shareholder X’s New York adjusted gross income, including all income, gain, and loss from Corporation A’s stock, loans, and corporate bonds by Corporation A’s apportionment factor.