Hi All,
For 2021, the NYS capital base tax for corporations increased to .001875. However, it is zero for NYS manufacturers, Co-ops and small business taxpayers. A corporation qualifies as a small business taxpayer if: 1) its ENI is not more than $390,000; 2) the total amount of money and other property it received for stock, as a contribution to capital and as paid-in surplus, is not more than $1 million as of the last day of its tax year; 3) the average number of individuals (excluding general executive officers) employed full time in New York State during the tax year is 100 or fewer; and 4) the corporation is not part of an affiliated group, as defined in IRC section 1504, unless the group itself would have met the above criteria if it had filed a combined return.
Does anyone know is homeowners associations qualify as a small business taxpayer (meaning zero tax)? Or should they be subject to the capital base tax. The default in our tax software is automatically checking the box as a small business taxpayer if it marked as an HOA but we all know how the software can be.
Any information would be helpful. Thanks.
Ryan Rao
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Ryan Rao CPA
FULLER LOWENBERG & CO., CPAs
Hauppauge NY
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