N.Y. Comp. Codes R. & Regs. tit. 20 § 45.14

Current through Register Vol. 46, No. 45, November 2, 2024

Section 45.14 - Profits from any transaction within this State whatsoever

(a) The law requires that "profits from any transaction (except sales for resale and rentals) within this state whatsoever" shall be included in gross income.

(b) It is the manifest that the Legislature intended to tax utilities subject to the supervision of the State Department of Public Service on gross receipts from some transactions and on profits from others. It is not possible to enumerate all the transactions to which the broad provision here under consideration relates.

(c) This class of transactions includes profits from labor not performed in the conduct of the taxpayer's principal business and from sales of materials and supplies, other than merchandise purchased for resale, i.e., property constituting stock in trade and properly includible in merchandise inventory.

Question 55:A utility is the subcontractor for duct-laying on a grade crossing job. Does it report its receipts from this job as gross income? Answer: No. Only the profit is includible in gross income.

Question 56:A rapid transit company expends $100,000 on the construction of a facility to be used by it and an elevated railway jointly. It receives $20,000 from the elevated railway as a share of the cost. Is the rapid transit company required to include the $20,000 in its gross income? Answer: No. Only so much of the $20,000 as represents profit to it.

Question 57:A water company lays pipes and mains for a consumer, title to which vests in the consumer. Are the charges made by the water company taxable? Answer: No. Only the profit thereon is taxable.

(d) The law excludes from gross income profits on sales for resale and profits on rentals (other than rentals of appliances which are considered as installment sales).

Question 58:Are charges for advertising space in a telephone directory required to be included in gross income? Answer: No. Only the profit is includible in gross income.

Question 59:The A gas company in New York sells and delivers to the B gas company in New York, two million cubic feet of gas, which the B company resells to consumers. Should the profit on the sale from A to B be included in A's gross income subject to tax? Answer: No.

Question 60:A gas company as a result of the manufacture of gas has a by-product of coke which it sells to a coal dealer who in turn sells to householders. Is the profit on such sale to be included in the gas company's gross income subject to tax? Answer: No.

Question 61:An electric company sells electric current to the owner or lessee of an apartment house or office building who resells the same to the tenants therein. Is the electric company required to include the profit on such sale in its gross income subject to tax? Answer: No.

(e) Profits on rentals are not taxable except such profits derived from rentals of appliances which are in effect installment sales, and rentals which constitute service charges.

Question 62:A bus company rents a garage to another. Should the rental derived through this lease be included in gross income subject to tax? Answer: No.

Question 63:A suburban street railway leases a portion of its line to a connecting railway. Is the rental subject to tax? Answer: No. Such rentals, however, should be reported in gross income and deducted with a proper explanation.

Question 64:A bus company rents a bus to another utility, without furnishing a driver or supplying gasoline, etc. Are receipts from the rental subject to tax? Answer: No. However, such rentals should be reported in gross income and deducted with a proper explanation.

Question 65:A railroad leases all of its property to another which operates it. Is the rental, whether gross, net, or in the form of guaranteed interest or dividends on the securities of the lessor, subject to tax? Answer: No. Such rentals, however, should be reported in gross income and deducted with a proper explanation.

(f) Commissions from public pay telephone stations, installation of vending machines, receipts from advertising privileges, newsstand occupancy, permission to erect advertising signs, etc., are considered rentals.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 45.14