New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter I - Franchise and Certain Business Taxes
Subchapter A - Business Corporation Franchise Tax
Part 4 - APPORTIONMENT
Subpart 4-2 - SPECIFIC APPORTIONMENT RULES
Section 4-2.1 - Receipts and net gains from the sale of tangible personal property
Current through Register Vol. 47, No. 12, March 26, 2025
(Tax Law, section 210-A(2)(a))
(a) Receipts and net gains (not less than zero) from the sale of tangible personal property are included in New York receipts if paragraph (1), (2), or (3) of this subdivision applies. All receipts and net gains (not less than zero) from the sale of tangible personal property are included in everywhere receipts.
(b)
(c) Examples of the types of evidence t h a t ordinarily will be sufficient to demonstrate the final destination of property include:
(d) For rules relating to receipts from sales of tangible personal property traded as commodities, see section 4-2.10 of this Subpart.
(e) Examples.
Example 1: Retail Corporation operates an online clothing store that serves the United States. Customers purchase clothing via the website and the clothing is shipped to the customer's home. Receipts from the sale of clothing shipped to locations within New York State are included in New York receipts. Receipts from the sale of clothing shipped to locations within and without New York State are included in everywhere receipts.
Example 2: Corporation A operates a car rental business in New York State and elsewhere in the United States. To keep its inventory up-to-date and make room for newer models, Corporation A sells some of its fleet of cars every year. The net gain (not less than zero) from these sales, which is properly reported as business income, shall be apportioned to New York State to the extent that the final destination of the cars sold is in New York. 100% of the net gains (not less than zero) are included in everywhere receipts. However, the amount included in New York receipts is limited to the amount included in everywhere receipts.