§ 15-05 Direct Expenses of the IBF.
RCNY § 15-05
(§ 11-641(f)(3), Administrative Code) (a) Expenses or other deductions which can be specifically identified with the gross income, gains, losses, deductions, assets, liabilities, or other activities of the IBF are direct expenses, regardless of where such expenses or other deductions are recorded. Direct expenses may include such items as interest, bad debts, rents, depreciation, taxes, insurance, supplies, compensation of officers, salaries, wages, travel expenses, pension plans, charitable contributions, training, servicing, etc.
(b)Employee expenses incurred at places other than the IBF are allocated to the IBF when the employee is regularly connected with or working out of the IBF regardless of where the services of such employee were actually performed.
(c)The IBF may incur certain expenses as a result of performing a service for one or more places of business of the taxpayer. These expenses must be directly allocated to the place or places of business of the taxpayer which received the benefit for which the service was performed.
(d)Head office expenses that can be specifically identified with the gross income, gains, losses, deductions, assets, liabilities, or other activities of the IBF are directly allocated to the IBF.
(e)If a portion of an expense can be specifically identified with the IBF, that portion of the expense must be directly allocated to the IBF. The portion of such expense that cannot be directly allocated to one or more places of business of the taxpayer must be indirectly allocated to the IBF pursuant to 19 RCNY § 15-08, infra.
