N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 9-4.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 9-4.2 - Computation of income

(Tax Law, section 209(5) and (7))

(a)

(1) In the case of a REIT, "Federal taxable income" means real estate investment trust taxable income as defined in IRC section 857(b)(2), as modified by IRC section 858 and, where applicable, by IRC section 965(m)(1)(B).

(2) If a REIT is subject to IRC section 965(m) and makes the election provided for by IRC section 965(m)(1)(B), the amount of any deduction allowed pursuant to IRC section 965(c) will be determined with reference to IRC section 965(m)(2)(B)(i), for purposes of the adjustments required by sections 208(9)(b)(23) and 1503(b)(2)(W).

(b)

(1) In the case of a RIC, "taxable income" means investment company taxable income as defined in IRC section 852(b)(2), as modified by IRC section 855, plus any amount taxable under IRC section 852(b)(3).

(2)

(i) A RIC that has received or accrued interest from, state, municipal or other obligations must add back the amount of such interest in computing its entire net income (ENI), to the extent such interest is exempt from income tax and is not included in taxable income. The amount to be added back may be reduced by any expenses attributable to such interest that are denied deductibility under IRC section 265, as well as any related amortizable bond premium that is denied deductibility under IRC section 171(a)(2).

(ii) Any amount added back pursuant to this paragraph must not be subtracted in computing ENI.

N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 9-4.2

Adopted New York State Register December 27, 2023/Volume XLV, Issue 52, eff. 12/27/2023