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Form NYC-399 - 2020 Page 2
ness, or two or more such businesses, which is Column G
GENERAL INFORMATION placed in service in taxable years beginning be- Indicate the depreciation method selected for the com-
fore January 1, 1989, or after December 31, 1993. putation of the New York City allowable depreciation
DO NOT USE THIS FORM TO REPORT AD- deduction. Any method used to compute depreciation
JUSTMENTS RELATING TO BONUS DEPRECI- WHO MUST USE THIS FORM that would have been allowed under IRC Section 167
ATION ALLOWED UNDER FEDERAL will be acceptable. This includes such methods as
A corporation or unincorporated business must use Form
LEGISLATION ENACTED IN 2002 AND LATER. straight line depreciation, declining balance deprecia-
NYC-399 if it claims an ACRS or MACRS deduction
DO NOT USE THIS FORM FOR THE SPECIAL tion, sum-of-the-years-digits method or any other con-
for property for federal purposes that does not fall within
DEPRECIATION ADJUSTMENTS FOR CERTAIN sistent method.
the exceptions above, and it files or is included in one of
SPORT UTILITY VEHICLES. USE FORM NYC-
the following New York City tax reports:
399Z. Column I
l NYC-3A, NYC-3L or NYC-4S Enter depreciation computed by the method indicated in
For taxable years beginning on or after January 1, 1982, General Business Corporations column G. Total of this column will be the depreciation
and before January 1, 1994, the federal depreciation de-
duction permitted under Internal Revenue Code Sec- l NYC-202, NYC-202EIN or NYC-204 allowable as a deduction for New York City. Enter the
Unincorporated Businesses total amount on the appropriate line of your New York
tion 168 (the Accelerated Cost Recovery System - City tax return.
ACRS or Modified Accelerated Cost Recovery System l NYC-1
- MACRS) was not permitted to be used in determining Banking Corporations LINE 1
taxable income for General Corporation Tax, Banking Enter total of columns F and I on lines 4 and 5 of
Corporation Tax and Unincorporated Business Tax pur- l NYC-2, NYC-2S or NYC-2A Schedule C. If you have disposed of “recovery prop-
Business Corporations
poses. (See exceptions below.) In place of the federal erty” you must complete Schedule B.
ACRS or MACRS depreciation deduction, a deprecia-
tion deduction computed by any other method permit- SCHEDULE B
ted under IRC Section 167 (as such section would have SPECIFIC INSTRUCTIONS Column A
applied to property placed in service on December 31, Enter each item of property separately. Attach a rider if
1980) was allowed. For property placed in service out- SCHEDULE A additional room is needed.
side New York State for tax years beginning after De- The purpose of this schedule is to compute the allow-
Column D
cember 31, 1984 but before January 1, 1994, The New able New York City depreciation deduction. This form
Enter for each item the total amount of ACRS or
York State Supreme Court, Appellate Division, in R.J. has been designed to be used with the federal depreci-
MACRS deductions used in the computation of the
Reynolds Tobacco Co. v City of New York Department ation schedule, Form 4562. A copy of the federal form
prior year’s federal taxable income.
of Finance, 237 A.D. 2d 6, 667 N.Y.S.2d 4 (1st Dept. must accompany this Form NYC-399.
Column E
1997), held that the New York City provision disallow- Only property placed in service in taxable years be- Enter for each item the total amount of New York City
ing the use of ACRS or MACRS was unconstitutional. ginning after December 31, 1980, but before January depreciation deductions used in the computation of
Accordingly, taxpayers will now be allowed to claim 1, 1985, and property placed in service outside New prior years’ entire net income. For 1981 recovery prop-
the same depreciation as was claimed on the federal tax York State in taxable years beginning after Decem- erty, the New York City depreciation deduction was the
return for property placed in service outside New York ber 31, 1984, and before January 1, 1994 for which same as the ACRS or MACRS deduction and must be
State in those tax years as provided in Finance Memo- the taxpayer DOES NOT intend to use ACRS or included in this column.
randum 99-4 “Depreciation for Property Placed in Serv- MACRS depreciation (see the second bulleted excep-
ice Outside New York After 1984 and before 1994”. tion above), (except for Section 280-F property and Column F
property of a taxpayer subject to the General Cor- If the total ACRS or MACRS deduction exceeds total
Exceptions poration Tax or Business Corporation Tax principally New York City depreciation, subtract column E from
A depreciation deduction computed under ACRS or engaged in the conduct of an aviation, steamboat, column D and enter the excess in this column.
MACRS may be used for: ferry or navigation business, or two or more such Column G
l property placed in service in New York State in businesses, which is placed in service before taxable If the total New York City depreciation exceeds ACRS
taxable years beginning on or after January 1, years beginning in 1989 or after 1993) should be en- or MACRS deductions, subtract column D from col-
1985; tered in this schedule. umn E and enter the excess in this column.
l property placed in service outside New York State Column A LINE 2
in taxable years beginning after 1984 and before Enter a brief description of each item of property de- Total column F and enter amount on line 6,
1994 for which the taxpayer intends to use ACRS or scribed above included in part III, federal Form 4562. Schedule C.
MACRS depreciation as provided in Finance Mem-
orandum 99-4 “Depreciation for Property Placed in Column B LINE 3
Service Outside New York State After 1984 and Be- For each item of property listed in column A, indicate Total column G and enter amount on line 7, Schedule C.
the “class of property” used in computation of the fed-
fore 1994”.
eral ACRS or MACRS deduction. Use “UPM” for SCHEDULE C
l property placed in service outside of New York property placed in service after December 31, 1980, LINE 8
State in taxable years beginning on or after Janu- which is depreciated under the unit of production Enter the amount on line 8A, the federal adjustment, as
ary 1, 1994; method provided in IRC Section 168(f)(1). an addition and the amount on line 8B, the New York
l recovery property subject to the provisions of IRC
Section 280-F (such as luxury automobiles) for Column D City adjustment, as a deduction on the applicable New
The cost or other basis entered in this column must be York City tax return.
taxable years ending after June 18, 1984; the same amount used for federal purposes. Property
l property of a taxpayer subject to the General Cor- placed in service in 1981 must be shown at the original
poration Tax principally engaged in the conduct cost and should not be reduced by any depreciation
of an aviation, steamboat, ferry or navigation busi- claimed in 1981.
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