Y-204: Yonkers Nonresident Partner Allocation (2024)
New York · NY DTF · Used for tax years 2024
Form Y-204, Yonkers Nonresident Partner Allocation, reports a partnership’s number of Yonkers nonresident partners, total net earnings from self-employment, and the portion attributable to Yonkers. It includes an allocation formula for businesses operating both in and out of Yonk
Who files this form
Every partnership doing business in Yonkers that has at least one partner who is not a Yonkers resident must complete Form Y-204.
A partnership is doing business in Yonkers if it:
- Maintains or operates an office, shop, store, warehouse, factory, agency, or other place in Yonkers where its affairs are regularly carried on; or
- Regularly and continuously performs acts or transactions in Yonkers for livelihood or profit, rather than only isolated or incidental transactions.
What you'll need
Have the following forms and information available:
- Form IT-204, Partnership Return: Use the partnership name shown on that form and submit Y-204 with it.
- Partnership information: The employer identification number and number of partners who are not Yonkers residents.
- Federal Form 1065, Schedule K: This supplies the partnership's total net earnings from self-employment for Part 2, column A.
- Books of account, if used to determine Yonkers earnings: If the partnership operates both in and out of Yonkers and uses its books to determine Yonkers net earnings, submit a computation.
- Allocation records, if Part 3 is required: Property values, gross rents payable, employee compensation, and gross sales or service charges, showing totals and Yonkers amounts.
If you use an authorized alternate allocation method, submit a detailed explanation of that method and full details of any changes increasing or decreasing the Yonkers income computed under it.
How to file
Submit completed Form Y-204 with Form IT-204, Partnership Return. The completed Y-204 constitutes the return required under Yonkers local law.
- Enter the partnership name and employer identification number.
- In Part 1, enter the number of Yonkers nonresident partners.
- In Part 2, report total net earnings from self-employment in column A and the Yonkers amount in column B.
- Complete Part 3 if the partnership operates both in and out of Yonkers and its books and records do not allow Yonkers net earnings from self-employment to be determined.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Including nonemployees in the payroll factor: Line 5 includes compensation paid only to partnership employees. Do not include payments to independent contractors or independent sales agents.
- Skipping Part 3 when using an alternate method: When Part 3 is required, it must still be completed even if an authorized alternate allocation method is used. Submit the required detailed explanation and details of changes to the Yonkers income amount.
- Leaving out the books-based computation: If a partnership operating both in and out of Yonkers determines Yonkers earnings from its books, submit the computation.
- Not submitting Y-204 with IT-204: The form specifically directs partnerships to submit the two forms together.
Questions people ask
When do we use the business allocation percentage?
A partnership operating both in and out of Yonkers must use the percentage from Part 3, line 8, if it does not keep books and records from which Yonkers net earnings from self-employment can be determined.
How is the business allocation percentage calculated?
Add the property, payroll, and gross income percentages on line 7. Divide that total by three, or by the actual number of percentages if fewer than three, and enter the result on line 8.
How is rented property valued for the property factor?
Rented real property and rented tangible personal property are generally valued at eight times the gross rents payable during the tax year. A building erected on leased land by or on behalf of the business is valued as if the business owned it.
Does Yonkers payroll include employees who travel out of a Yonkers office?
Yes. For line 5, operations are considered carried on in Yonkers if the employee works in or travels out of an office or other business location in Yonkers.