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 4-2.13 - Brokerage commissions

(a) In the case of a registered securities broker or dealer, receipts constituting brokerage commissions derived from the execution of purchase or sale orders for securities or commodities for customers shall be deemed to be generated within New York State if the corporation's records indicate the mailing address of the customer who is responsible for paying such commissions is in New York State.

(b) Example.

Broker X earns $10,000 in brokerage commission income from investment advisor Y to execute trades for investment fund Z. Investment advisor Y is responsible for paying the commission to Broker X but passes on the brokerage commission expense to its investors in the form of fees. Broker X's records indicate that the mailing address of investment advisor Y is within New York State and investment fund Z's mailing address is in state A. Because Investment advisor Y is the customer responsible for paying the brokerage commission to Broker X and its mailing address in Broker X's records is in New York State, $10,000 is included in both New York receipts and everywhere receipts.