§ 11-70 Allocation of Business and Investment Capital.
RCNY § 11-70
(a)General.
(1)A taxpayer may not allocate any of its business capital without New York City unless it had a regular place of business outside New York City during some part of the year covered by the report. But a corporation may allocate its investment capital by its investment allocation percentage, even if all of its business and its only office were in New York City.
(2)Business capital allocable to New York City is computed by multiplying business capital by the business allocation percentage. Investment capital allocable to New York City is computed by multiplying investment capital by the investment allocation percentage. The sum of the products so obtained is the taxpayer's total business and investment capital allocable to New York City.
(3)Where the investment income (before allowance of any net operating loss deduction) of a taxpayer not reporting on a combined basis is more than 85 percent of its entire net income (before allowance of any net operating loss deduction) and its investment capital is more than 85 percent of its total business and investment capital, it may elect to allocate its total business and investment capital by the investment allocation percentage (see 19 RCNY § 11-68(a), supra). Also, where the business income (before allowance of any net operating loss deduction) of a taxpayer not reporting on a combined basis is more than 75 percent of its entire net income (before allowance of any net operating loss deduction) and its business capital is more than 75 percent of its total business and investment capital, it may elect to allocate its total business and investment capital by the business allocation percentage (see: 19 RCNY § 11-63(a), supra).
(b)Allocation of business capital. (§ 11-604(4), Administrative Code.) In computing the tax measured by business and investment capital, the business capital of the taxpayer allocable to New York City is determined by multiplying business capital, determined as provided in 19 RCNY §§ 11-36(a) through 11-43, supra, by the business allocation percentage, determined as provided in 19 RCNY §§ 11-63 through 11-66, supra, unless the taxpayer has the right to and does elect to allocate its total business and investment capital by the investment allocation percentage (see: 19 RCNY § 11-68(a), supra).
(c)Allocation of investment capital. (§ 11-604(5), Administrative Code.) In computing the tax measured by business and investment capital, the investment capital allocable to New York City is determined by multiplying investment capital, determined as provided in 19 RCNY § 11-36 "investment capital" and 19 RCNY §§ 11-37 through 11-43, supra, by the investment allocation percentage, determined as provided in 19 RCNY § 11-68, supra, unless the taxpayer has the right to and does elect to allocate its total business and investment capital by the business allocation percentage (see: 19 RCNY § 11-63(a), supra).
