N.Y. Tax Law 868 – City pass-through entity tax election
§ 868. City pass-through entity tax election. (a) Any eligible city partnership that makes the annual election to be taxed pursuant to article twenty-four-A of this chapter in accordance with section eight hundred sixty-one of this chapter or any eligible city resident S corporation that makes the annual election to be taxed pursuant to article twenty-four-A of this chapter as an electing resident S corporation in accordance with section eight hundred sixty-one of this chapter may make an annual election to be taxed pursuant to this article for the same taxable year for which such eligible city partnership or eligible city resident S corporation has made an election to be taxed pursuant to article twenty-four-A of this chapter. The election to be taxed pursuant to this article must be made by the due date as specified in subsection (c) of section eight hundred sixty-one of this chapter and in the same manner as the election to be taxed pursuant to article twenty-four-A of this chapter.
Terms Used In N.Y. Tax Law 868
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
(b) In order to be effective, the annual election to be taxed pursuant to this article must be made by an individual as described in subsection (b) of section eight hundred sixty-one of this chapter who made the annual election to be taxed pursuant to article twenty-four-A of this chapter for the taxable year.
(c) The annual election to be taxed pursuant to this article must be made on or before the due date of the first estimated payment under section eight hundred sixty-four of this chapter and will take effect for the current taxable year. Only one election to be taxed pursuant to this article may be made during each calendar year. An election made under this section is irrevocable after such due date. To the extent an election made under section eight hundred sixty-one of this chapter is revoked or otherwise invalidated an election made under this section is automatically invalidated.