Sec. 18-2.5. Other items affecting entire net income

Tax Law, § 1453

(a) Entire net income may be affected by the following:

(1) In the case of property placed in service prior to January 1, 1973 for which the taxpayer properly adopted a method of computing depreciation under section 219-z or 219-xx of the Tax Law which was different than the method adopted for Federal income tax purposes, entire net income shall be computed by adding to Federal taxable income the deduction for depreciation on such property used in the computation of Federal taxable income and by subtracting from Federal taxable income a deduction for depreciation on such property computed as if such deduction were determined by the method of depreciation adopted under section 219-z or 219-xx of the Tax Law.

(2) A deduction is allowed for depreciation, at the election of the taxpayer, for certain tangible property located in New York State (see section 19-8.5 of this Title Optional depreciation).

(3) Provided an election has not been made pursuant to section 19-2.3 of this Title, a deduction is allowed for the adjusted eligible net income, as described in Subpart 18-3 of this Part, of the IBF of the taxpayer. In the event adjusted eligible net income is a loss, the amount of such loss is added to entire net income.

(4) Entire net income is to be computed without regard to the reduction in the basis of property that is required by section 362 of the Internal Revenue Code because of any amount of money or other property received from the Federal Deposit Insurance Corporation pursuant to section 13(c) of the Federal Deposit Insurance Act, as amended (12 USC 1823[c]), or from the Federal Savings and Loan Insurance Corporation pursuant to section 406(f)(1), (2), (3) or (4) of the Federal National Housing Act, as amended (12 USC 1729[f][1], [2], [3] or [4]).

(b) A taxpayer sustaining a net capital loss for Federal income tax purposes is permitted to carry back or carry forward such loss to the same extent and to the same years as is allowed under section 1212 of the Internal Revenue Code. A corporation which files as part of a consolidated group for Federal income tax purposes, but files on a separate basis for purposes of article 32 of the Tax Law, must compute its net capital loss as if it were filing on a separate basis for Federal income tax purposes.