NYC exempt unincorporated business activity, Form NYC-204 issue.

[MiltonD]

I'm preparing a a return for an LLC which owns a building and receives rental income. Although this is considered by NYC an exempt unincorporated business activity, Form NYC-204 results in a liability although I checked the "Engaged in a fully exempt activity." However if I use Form 204 EZ the program works correctly. Unfortunately, because income exceeds the threshold of $90,000 I must use NYC-204. Is there an override to make the form work properly? Thank you.  

[CCASTILLO11]

Did you ever fix this issue? I'm having the same problem with a 2020 Tax return. 

Thanks in advance. 

[Nicholas923]

Hi Im having the same issue & feel there is a software glitch. How did you resolve Thank you

[CCASTILLO11]

No, I spent an entire afternoon trying to find a solution with pro series. They ended up saying a supervisor will call me back but I doubt it’ll happen now before the deadline. it definitely is a glitch. Please post if you find an answer and I will as well 

[Nicholas923]

Hi I was on the phone for close to 2 hours!!

They took a sanitized sample of one of my files and basically said that it is not the software!!! I said how can that be? Basically they told me to either turn off the error module and force the efile or put in a negative number on page 3 Sch B  line of NYC 204 (which I figured out on my own yesterday)and it will show a zero tax. Im hoping that we dont get letters from NYC down the road but it can be expalined. Good luck to you.

Nicholas

[CCASTILLO11]

Thanks Nicholas. 

[Nicholas923]

Hi we spoke last year re the glitch with NYC UBT exempt for real estate LLCs. The same crap is happening again this year.

Nicholas

[PWHITECPA]

Any solution on this? I had same problem last year, numerous calls, supervisor swore NYC changed the form and after numerous rejects, the form was finally accepted (after the deadline)

How are you going to file?

[Nicholas923]

Good morning...no solution yet!!!

Ive called so many times and just done get it.

For now Im checking the UBT exempt box and manually inserting the net income on line 5 (exempt line of Form NYC 204EZ) It seems to work. 

[IntuitMark304]

Hi there NY City 204 filers,

I would recommended reviewing the instructions for page 3 of the NYC 204 and specifically lines 14d and line 22.  

My initial review of the instructions indicate that the exempt activity you are describing would be reversed in those fields.  

Please review and let me know if it solves the issue  you are seeing in your filings.    Hope this is helpful.

Mark304

[alehouse155]

Mark....

This is a PROSERIES issue with programming!

I have spoken to several NYC CPA's and their software works just fine.

I am furious and will definitely not be renewing for 2022.

Thanks

[PWHITECPA]

CRAZY, that PROSERIES can't get this right! year after year!

If you still want to file NYC 204EZ, TRY on Line 5 entering EXEMPT RENTAL INCOME and the amount.

This subtracts the rental income from the total and allows the NYC EZ to be filed. Hope it works for you

[MiltonD]

I'm having the same problem with the NYC UBT "Exempt Activity" once the rental net income is greater than $90,000.  It works fine when using the EZ form. Does anyone has a solution? 

[IntuitMark304]

NY filers,

See my example attached for removing the exempt rental activity from the NYC 204.  On page 3 of the 204, the taxpayer has over $90,000 of rental income.  You can back out all of the exempt activity on line 22 of Schedule B.  

Can you help me understand the specific issue you are encountering if the example I am providing is not helpful?  I think we may not be on the same page.  Is the issue that Proseries is forcing the taxpayer to file a NYC 204 vs a NYC204EZ in the scenario when rental income is over $90,000?

 Thanks for all the input. 

[IntuitMark304]

Here is an example of filing the 204EZ instead and subtracting the exempt activity on line 5 of the form.  Please give me your feedback so I can understand the problems you are encountering.  

[MiltonD]

Mark, thank you for your guidance. I looked at that schedule many, many times and I just couldn't see it. It was right there!

[IntuitMark304]

MiltonD,

Glad I was able to help.  Sometimes it is hard to see the forest for the trees. We have all been there at one time or another.  

PWHITEPCA and alehouse155 let me know if you are still having issues.  I want to make sure everyone's issues are being addressed. 

Mark304