Gabriel,
There must be payroll. This is from IT-225 instructions page 28:
an LLC, partnership, or New York S corporation that employs one or more persons during the tax year, and has New York
gross business (see Note below) income attributable to a non-farm business that is greater than zero but less than $1,500,000
In addition, in order to qualify for this subtraction modification, a taxpayer who is a member, partner, or shareholder of an LLC,
partnership, or New York S corporation, that is a non-farm small business, must have income attributable to the net business income
from its ownership interests that is less than $250,000.
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James Kalaitzis
CPA
JAMES KALAITZIS, CPA
Smithtown NY
631-670-7629
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Original Message:
Sent: 02-06-2025 08:36 AM
From: Gabriel Bentovim
Subject: NYS SMALL BUSINESS MODIFICATION
Do S corporations that rent out one piece of commercial property with no payroll but net income and gross receipts of less than $1,500.000 qualify for the small business modification. It appears that if it is considered a passive activity it likely will not qualify.
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Gabriel Bentovim
CPA
HOFFMAN & BENTOVIM, CPAs PC
Commack NY
631-499-1500631-499-1500
631-499-1500
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