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Bronx New York online Form 1120-S (Schedule M-3): What You Should Know
See Form CT-3 for the following items on the form: • Changes for the current year (general) • Tax Year 2 (tax on income from the last quarter) • Income Tax Year 2 (subtitle E) • Tax Year 1 (tax on gains from disposition of securities) • Tax Year 1 (subtitle F) • Subtopic A-7 (corporation tax) and this subtopic, the last four items (except the line 4, “Tax Year 2 (see paragraph (a)),”) • Tax Year 1 (see paragraph (b)) • Subtopic H (income and profit) for tax year 2 if the corporation's total gross (losses) was not less than 10 million (see paragraph (a)) • Tax year 1 (see paragraph (b)) If you do not file a Schedule M-3, your corporation will be liable for tax on any excess of corporate income from sources within the U.S. over 10 million dollars (10,000,000) in tax year 2. If your corporation was able to issue bonds but did not do so, your corporation is likely not liable for any tax. There are situations, however, in which you as the corporation or as the shareholder or holder of any interest in any of your stocks or bonds, may not be able to deduct all your losses from the disposition of your corporate securities or your corporate bonds without incurring a tax liability yourself. The Corporation Tax Deduction for New York State residents If you are a New York resident and receive any amount from a grant under IPA in the year, you may be able to claim a tax deduction that is equal to the amount of the grant, provided that: • You are the grantee or are an assignee; • You filed New York State Form 703A or New York State Form 703B with the NYS Department of Taxation within the two years prior to the receipt; and • The amount received is more than 500 or any amount in excess of 500 (or, if you are a New York State or foreign person, the amount of the grant received is more than 5,000).
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