![]() ![]() For step by step instructions to completing Part 4 of CT-3, consult of the instructions to Form CT-3. Most of the information you need for this step will come from your business’ balance sheet. You calculate your business’ capital base in Part 4 of Form CT-3. (The fair market value of an asset is the price that asset would command if you sold it in the open market.) This tax is based on your total business capital base, which is the fair market value (FMV) of all the assets and investments your business owns in New York State. Some qualified New York manufacturers pay a tax rate of 0%.A lower rate of 4.875% applies to certain qualified emerging technology companies (QETCs)-emerging technology companies that make less than $10 million a year and have been certified by the Commissioner of Taxation and Finance after filing form DTF-620 ( instructions).(See page 17 of the instructions to CT-3 for a full rundown of Part 6.)Īdjusting your federal taxable income in this way will give you your total New York State business income.įinally, you must multiply your total New York State business income by one of the rates on the tax rates schedule on page 9 of the instructions to Form CT-3-I. This is the longest and most complicated section of CT-3, and you should have a tax professional help you with it. If you’re a multi-state corporation, your final adjustment is to multiply this adjusted amount by the New York apportionment factor, which is calculated in Part 6. ![]() bonds, which are computed using Form CT-225 and are covered in-depth in the instructions to that form. ![]() These adjustments involve things like depreciation, royalty payments, and interest income on U.S. You must then make certain ‘New York State additions and subtractions’ to your FTI on lines 2 and 4 in Part 3 of form CT-3. (If you used IRS Form 1120-REIT, 1120-RIC, 1120-C or any other Form 1120 variants to report your corporate taxes instead, consult the instructions to Form CT-3.) You can find it on line 28 of your Form 1120, the federal tax form corporations use to report their income to the IRS. Your federal taxable income (FTI) is the starting point for calculating your New York State business income. The final amount that you pay is equal to whichever of these amounts is the greatest. But calculating your exact New York State corporation taxes can take some work.įirst, you have to calculate three different amounts: To calculate and pay it, you must fill out and file Form CT-3, your New York corporate tax return.įor many businesses, this tax ends up being somewhere around 6.5% of their business income earned in New York. New York’s corporate franchise tax applies to both C and S corporations. Franchise taxes-or, as they’re known in some states, privilege taxes-are taxes that you pay for the privilege of doing business in that particular state. ![]()
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