Cr Q3 Form – Fill Out and Use This PDF

WHAT CONSTITUTES RENT

A tenant is also entitled to deduct from the

Rent is the consideration paid or required to

base rent amounts paid by the tenant for the

be paid by a tenant for the use or occupancy

tenant’s own use of the premises:

of premises, valued in money, whether re-

a) for railroad, air, or omnibus transporta-

ceived in money or otherwise, including all

credits, property, or services of any kind, as

tion purposes;

well as any payment required to be made by a

b) for piers, insofar as they are used in in-

tenant on behalf of the landlord for real estate

terstate or foreign commerce;

taxes, water and sewer charges, or any other

c) which are located in, on, above, or under

expenses (including

insurance)

normally

a public place and are defined by law as

payable by a landlord who owns the realty,

special franchise property;

other than expenses for the improvement, re-

d) which are advertising space or signs,

pair or maintenance of the tenant’s premises.

vending machines, or newsstands in sub-

Where the rent paid by a tenant for the occu-

way or elevated railroad premises oper-

ated by the New York City Transit

pancy of taxable premises is measured in whole

Authority when the rent is payable to the

or in part by the gross receipts from the sales

TransitAuthority; or

within the premises, the rent, for purposes of

computing the Commercial Rent Tax is the ac-

e) which is parking space subject to the addi-

tual percentage of gross receipts due the land-

tional 8% parking tax imposed under Ad-

lord, but not in excess of 15% of gross receipts.

ministrative Code Section 11-2049.

Tenant shareholders in cooperative buildings

NOTE: Report these deductions on line 5a -

should calculate the amount of rent subject to

Other Deductions and attach a schedule.

tax as provided in Section 7-01 “Rent” of the

Commercial Rent Tax Rules. (Title 19, Rules

For a more detailed discussion of deductions

of the City of NewYork, Chapter 7)

If a ten-

in calculating base rent refer to Section 11-

ant uses two or more taxable locations in the

704 of the NYC Administrative Code and

same building at the same time, the total rent

Section 7-01 “Base Rent” of the Commercial

paid for all such locations constitutes rent

Rent Tax Rules. (Title 19, Rules of the City

paid for one taxable premises.

of New York, Chapter 7.)

WHAT CONSTITUTES BASE RENT

EXEMPTIONS

Base rent is generally the rent paid for each

The following are exempt from payment of

taxable premises by a tenant to the landlord

the Commercial Rent Tax:

for a period, less the amounts received by or

due such tenant for the same period from any

1. a tenant whose annualized base rent be-

subtenantofanypartofthepremises. (See in-

fore the 35% rent reduction and the NYC

structions to line 4, Rent from Sub-tenant(s)).

Commercial Revitalization Program spe-

cial reduction (line 5b) is less than

Where the base rent is for a period of less

$250,000 for a period beginning on or

than one year it must be annualized. Base

after June 1, 2001. The annualized base

rent is annualized by assuming it was paid on

rent for a period of less than one year is

an equivalent basis for the entire year.

determined as if the rent had been paid

on an equivalent basis for an entire year;

In computing base rent, rent received from a

subtenant subject to the tax or exempt from

2. a tenant who uses premises for 14 days

the tax because the

subtenant's annualized

or less (whether or not consecutive) in a

base rent is less than $250,000for a period be-

tax year, and is not required to pay rent

ginning on or after June 1, 2001, and rent re-

for a longer period;

ceived from a subtenant that is a governmental

entity, the UN, or a nonprofit religious, chari-

3. a tenant (other than the operator of a

table or educational entity exempt from the

hotel, apartment hotel or lodging house)

tax may be deducted by a prime tenant.

who uses premises for residential renting

to others to the extent of 75% or more of

NOTE: Base rent paid by a tenant for one

the rentable floor space;

taxable premise cannot be reduced by de-

ducting rents received by that tenant for an-

4. a tenant who uses premises for certain

other taxable premise of which he is also a

dramatic or musical arts performances

tenant.

for less than 4 weeks where the perform-

ances are not intended to continue for

LINE 6 - TOTALDEDUCTIONS

l Transfer the totals of lines 13 and 14 to

Add lines 3 through 5b and enter the total de-

lines 1 and 2 respectively, page 1 of the

ductions in line 6.

form.

LINE 7 - BASE RENT BEFORE THE

LINE 15 - TAX DUE

35% RENT REDUCTION

BEFORE CREDIT

Subtract line 6 from line 2 to obtain the

Multiply line 14 amounts by 6% and enter the

amount of your base rent before the 35% rent

result on line 15. This is your tax due before

reduction.

the tax credit. The total of line 15 should

equal the amount calculated as tax due on line

LINE 8 - 35% RENT REDUCTION

2, page 1 of the form.

Multiply line 7 by 35% and enter here.

LINE 16 - TAX CREDIT

LINE9-BASERENTSUBJECTTOTAX

Compute your tax credit using the Tax Credit

Subtract line 8 from line 7 to obtain the

Computation Worksheet provided at the bot-

amount of your base rent subject to tax.

tom of page 2 of the form and enter the result

on line 16.Transfer the total of line 16 to line

Note: See highlighted NOTE under line

3, page 1 of the form.

9, Page 2 of the tax form.

PAGE 1

ANNUALIZATION OFBASE RENT

ComputationofTax

Complete lines 10 through 12 only if the

amount shown on line 7 does not represent rent

LINEA- PAYMENT

paid for the full three-month period.

Enter the amount of payment remitted with

this return in the space provided.

LINE 10 - MONTHSAT PREMISES

Enter the dates (month and year) that occu-

LINES 1AND 2 -

pancy or use of such premises began and

COMPUTATION OFTAX DUE

ended. Compute the number of months occu-

Enter the number of taxable premises you

pied or used to the nearest full month and

have occupied or used during the tax period in

enter.

the appropriate columns on lines 1 and 2.

LINE 11 - MONTHLYBASE RENT

Enter on lines 1 and 2, whichever applies,

BEFORE RENT REDUCTION

your base rent totals for all premises in each

Divide the sum of lines 7 and 5b by line 10 to

class calculated on lines 13 and 14 from page

arrive at the average monthly base rent, be-

2. Multiply “total base rent” on line 2 by the

fore rent reduction.

tax rate of 6% and enter the result in the col-

umn under “tax due.” This amount should

LINE 12 - QUARTERLYBASE RENT

equal the total tax due before credit of all the

Multiply line 11 by 3 (months). This is your

premises of line 15 from page 2.

quarterly base rent, before rent reduction.

LINE 3 - TAX CREDIT

LINES 13AND 14 - RATE CLASS

Enter the total amount of tax credit of all the

l If lines 10 through 12 are not applicable,

premises from line 16, page 2.

and if the sum of lines 7 and 5b is $62,499

or less and represents rent for the full

LINE 4 - TOTALREMITTANCE DUE

three-month period, transfer the amount

Deduct line 3 from line 2. The result will be

on line 9 (not the amount on line 7) to

the total remittance due for the period. Make

line 13. If the sum of lines 7 and 5b is

your check payable to the order of:

$62,500 or more and represents rent for

NYC Department of Finance

the full three-month period, transfer the

amount on line 9 (nottheamountonline

Enter the amount of payment remitted with

7) to line 14.

this return on LineAin the space provided.

l If lines 10 through 12 are applicable, and

if the line 12 amount is $62,499 or less,

transfer the amount on line 9 (not the

l Besurethatyourname,EINorSSN,andAc-

amount on line 12) to line 13. If the line

countIDNumberappearonthefaceofthe

12 amount is $62,500 or more, transfer the

check.

amount on line 9 (nottheamountonline

12) to line 14.