Preparing New York returns when the state and federal groups are the same

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Use this procedure to ensure the correct preparation of New York combined income tax returns if the members of the New York unitary business group are the same as those included in the federal consolidated group.

  1. Add New York to the parent client, the eliminations client, and the applicable subsidiary clients. Complete all data entry for these member clients. Each member's state return should be complete and correct before proceeding to the next step.

    Note: Apportionment data entry must be completed for each member client, even if the client is 100 percent in-state. The parent client and the applicable subsidiary clients must use the same apportionment method. Apportionment data entry is accessed through View > Apportionment.

  2. Add New York to the federal consolidated client.

    Note: When adding New York to a consolidated federal client, the state automatically defaults to being a combined return.

    If the state is added as a C Corporation to a federal consolidated group, the consolidated functionality does not take place. The amounts from each member are not combined, and the combined forms are not available.

  3. Review all New York combined client input screens and complete any necessary remaining data entry. For each category not marked in the File > Client Properties > Advanced Properties > Options dialog, enter the necessary data in the applicable input screens.

    Note: If a category is not marked, enter the data on the applicable input screens in the combined client. For a list of categories and related input screens, see Categories and related New York input screens.

    Any changes made to the File > Client Properties > Advanced Properties > Options dialog affect both the federal and state return.

  4. Click the Combined folder in the New York folders block. Complete the necessary information in Screens NYComb and NYCAdj. Click the NYC input screen folder. Complete the necessary information in Screens NYNYCCom, NYNYCAfl, and NYNYCNOL.
  5. To make manual adjustments in other areas of the return, click the Group View button or press F7 in the input screen field you want to adjust, and then enter the adjustment amount in the Group View dialog.
  6. To change amounts entered in the New York parent, eliminations, or subsidiary clients, go back to the original source of data entry. For instance, if you made a mistake when you entered the apportionment of the first subsidiary, close the consolidated client and reopen the first subsidiary. Choose View > Apportionment for that client and correct the data. Close the subsidiary client and reopen the consolidated client. The correct amount is now a part of the consolidated group return.
  7. Print and review the New York combined tax return.

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