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NYC 204EZ or NYC 204 for LLC

Nicholas923
Level 2

Aren't Real Estate (rentals) LLC's exempt from NYC tax (UBT)?

 

I have about 125K in net income and the program is calculating the 4% tax.

 

Please help

Thank you

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5 Replies 5
PWHITECPA
Level 1

I have the same problem. I filed and the reject said it was over $95,000 but it's fully exempt.

Last year the program let me efile the exact same return. What changed?

 

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nyc204ez exempt
Level 1

I'm having the same issue - need to know why getting an error when should be exempt for RE

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Mark304
Employee
Employee

When filing a NYC-204EZ the user may use line 5 (Amount included in line 4 representing net income or loss from activities exempt from the tax) to subtract any exempt income/losses from the calculation.  

New York City has installed electronic filing rules that require the amount on line 10 to be less than $90,000 for all NYC-204EZ filers.  

 

nyc204ez exempt
Level 1

Not filing the NYC 204EZ, filing as an exempt entity under real estate LLC so should be exempt and when that is marked nothing else should have to be completed in that regard.

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Mark304
Employee
Employee

If you are filing the NYC 204 for and are checking the box as a "fully exempt unincorporated business activity", then the preparer will need to record a subtraction on page 3, Schedule B, Part 2, line 22 for "Exempt activities".  This subtraction would remove any federal income that is exempt from taxation in New York City.  

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