Y-204: Yonkers Nonresident Partner Allocation (2025)

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 there where its affairs are regularly carried on; or
• Regularly carries out a series of acts or transactions there for livelihood or profit, rather than isolated or incidental transactions.

What you'll need

Have these records and details available to complete the form:

• The partnership name as shown on Form IT-204 and its employer identification number.
• The number of partners who are not Yonkers residents.
• Federal Form 1065, Schedule K, for the partnership’s net earnings from self-employment.
• Books and records showing net earnings from self-employment from Yonkers sources, if available.
• If completing Part 3, records of property values, gross rents, employee pay, and gross sales or service charges, with total and Yonkers amounts.

If you use the partnership’s books to determine Yonkers earnings for a business operating both inside and outside Yonkers, submit a computation. If you use an authorized alternate allocation method, submit a detailed explanation, including full details of changes that increase or decrease the Yonkers income calculated under that method.

How to file

Submit Form Y-204 with Form IT-204, Partnership Return. The completed Y-204 constitutes the return required under Yonkers local law.

To complete Y-204:

1. Enter the partnership’s name and employer identification number.
2. In Part 1, enter the number of Yonkers nonresident partners.
3. In Part 2, column A, enter the partnership’s net earnings from self-employment reported on federal Form 1065, Schedule K. In column B, enter the Yonkers amount.
4. Complete Part 3 if the partnership does business both inside and outside Yonkers and its books and records cannot determine Yonkers net earnings from self-employment. Use the business allocation percentage from Part 3, line 8.

The supplied text does not give a mailing address or e-filing directions.

Common mistakes

• Submitting Y-204 without IT-204. The form says to submit Y-204 with the partnership’s Form IT-204.
• Skipping Part 3 when using an authorized alternate allocation method. When Part 3 is required, it must still be completed even if an authorized alternate method is used. Submit the required detailed explanation as well.
• Including nonemployees in the payroll factor. Line 5 includes employee pay only. Do not include payments to independent contractors or independent sales agents.
• Overlooking the paid-preparer warning. Paid preparers may face a penalty for failing to meet certain requirements. The form refers preparers to Form IT-204-I for more information.

Questions people ask

Can the partnership use its books to determine Yonkers earnings?

Yes. If it does business both inside and outside Yonkers and its records can determine Yonkers income, enter the Yonkers net earnings from self-employment from those records in Part 2, column B. Submit a computation.

How is the business allocation percentage calculated?

In Part 3, add the property, payroll, and gross income percentages on line 7. On line 8, divide that total by three, or by the actual number of percentages if fewer than three.

How is rented property valued for Part 3?

Rented real property and rented tangible personal property are generally valued at eight times the gross rents payable for the tax year. A building erected by or for the business on leased land is valued as if the business owned it.

Which employee pay counts as Yonkers payroll?

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.

Official sources

• https://www.tax.ny.gov/pdf/current_forms/it/y204_fill_in.pdf