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The corporation, a NY entity, will need to file a return and pay any tax due on this transaction if there is a gain. However, the state will allow a credit for the taxes paid to California on this. The credit will be the lower of the tax actually paid to California or the NY tax computed before the credit. NY corporate tax rates are presently 7.1% of taxable income and there are minimum taxes imposed. Here is the tax rate schedule reflecting the minimum taxes as well as the rates:
Tax rates schedule
Tax base Tax rates
Table 1 - ENI base for general business taxpayers .071
Table 2 - ENI base for qualified small business taxpayers
ENI base of $290,000 or less: .065
ENI base of more than $290,000 but not more than $390,000: • $18,850
Table 3 - For tax years beginning on or after January 31, 2007
ENI base for qualified New York manufacturers .065
Table 4 - Capital base .0015
Table 5 - Qualified cooperative housing corporation capital base* .0004
Table 6 - MTI base .015
Table 7 - Fixed dollar minimum tax
For a corporation with New York receipts of:
Not more than $100,000 $ 25**
More than $100,000 but not over $250,000: $ 75**
More than $250,000 but not over $500,000: $ 175**
More than $500,000 but not over $1,000,000: $ 500
More than $1,000,000 but not over $5,000,000: $1,500
More than $5,000,000 but not over $25,000,000: $3,500
Over $25,000,000 $5,000
Table 8 - Subsidiary capital base .0009
Thank you for your timely answer, however I researched the NY corporation credit form which is CT-600 and I can not ascertain where the credit is taken. Can you assist here?
Specifically what section and line number would be appropriate on that form.
Thanks in advance for your help.