1. DEPRECIATION ADJUSTMENTS FOR CERTAIN POST 9/10/01 PROPERTY
NYC
399Z
NEW YORK CITY DEPARTMENT OF FINANCE
TM
*00610891*
Finance
For CALENDAR YEAR ________ or FISCAL YEAR beginning __________________________ and ending __________________________
Name (Print or Type) EMPLOYER IDENTIFICATION NUMBER
Federal Form 4562 must accompany this form. OR
This schedule must be attached to your applicable New York City tax return.
L
See instructions on back.
SOCIAL SECURITY NUMBER
L
Use Schedule A2 to report modifications to the deductions for certain sport
L
utility vehicles, not Schedule A1. See instructions.
L
SCHEDULE A1 Computation of allowable New York City depreciation for current year Attach rider if necessary
E G H I
B C D F
A
Method of Life
Class of Date Placed Cost Federal
Description Accumulated NYC Allowable
Figuring NYC or
Property in Service: or Depreciation
of Depreciation Taken New York City
Depreciation Rate
mm-dd-yy Other Basis
Property Depreciation
in Prior Years
1a. Total columns D, E, F, and I..............
Enter total of columns F and I on line 4 and line 5 of Schedule C below. (See instructions on back.)
SCHEDULE A2 Computation of NYC deductions for current year for sport utility vehicles Attach rider if necessary
E G H I
B C D F
A
Method of Life
Class of Date Placed Cost Federal
Description Accumulated NYC Total Allowable
Figuring NYC or
Property in Service: or Depreciation and
of Deductions Taken New York City
Depreciation Rate
mm-dd-yy Other Basis Section 179 Deductions
Property Deductions
in Prior Years
1b. Total columns D, E, F, and I..............
00610891 NYC-399Z - 2008

2. Form NYC-399Z Page 2
SCHEDULE B Disposition adjustment Attach rider if necessary
For each item of property listed below, determine the difference between federal and New York City deductions used in the computation of federal and New
York City taxable income in prior years.
If federal deduction exceeds New York City deduction, subtract column E from column D and enter in column F.
If New York City deduction exceeds federal, subtract column D from column E and enter in column G.
LL
D E F G
C
B
A
Class of Date Placed
Description Total Federal Total NYC Adjustment Adjustment
Property in Service:
of Property (D minus E) (E minus D)
Depreciation Taken Depreciation Taken
mm/dd/yy
(ACRS)
2. Total excess federal deductions over NYC deductions (see instructions) ................................
3. Total excess NYC deductions over federal deductions (see instructions) ....................................................................
Computation of adjustments to New York City income
SCHEDULE C
B. New York City
A. Federal
4. Enter amount from Schedule A1, line 1a, column F............................4.
5. Enter amount from Schedule A1, line 1a, column I.............................5.
6a. Enter amount from Schedule A2, line 1b, Column F.........................6a.
6b. Enter amount from Schedule A2, line 1b, Column I..........................6b.
7a. Enter amount from Schedule B, line 2 ..............................................7a.
7b. Enter amount from Schedule B, line 3 ..............................................7b.
8. Totals: column A, lines 4, 6a and 7b; column B, lines 5, 6b and 7a ...8.
Enter the amount on line 8, columnA, as an addition and the amount on line 8, column B, as a deduction on the applicable New York City return. (See instructions)
GENERAL INFORMATION ertyquot; (as defined in IRC §168(k)(2)) generally includes certain
personal property acquired after September 10, 2001 and before
January 1, 2005 and placed in service after September 10, 2001
The Job Creation and Worker Assistance Act of 2002, P.L. 107-
and before January 1, 2005 or 2006 in certain circumstances.
147, (the quot;Actquot;) allows taxpayers an additional 30 percent de-
*00620891*
The 2003 Act modified the definition of “qualified property” to
preciation deduction in the first year quot;qualified propertyquot; is
provide that to qualify for the 50% deduction, the property must
placed in service. The Act allows a similar additional 30 per-
be acquired after May 5, 2003 and before January 1, 2005 and
cent first-year depreciation deduction for quot;qualified New York
placed into service before January 1, 2005 or 2006 in certain cir-
Liberty Zone propertyquot; and allows quot;qualified New York Liberty
cumstances. quot;Qualified New York Liberty Zone propertyquot; (as
Zone leasehold improvementsquot; to be depreciated over a five-year
defined in IRC §1400L(b)(2)) generally includes the same types
period using a straight-line method. The Act also allows an ad-
of personal property if used substantially in the New York Lib-
ditional first-year expense deduction of up to $35,000 for quot;qual-
erty Zone in connection with the active conduct of a trade or
ified New York Liberty Zone propertyquot; under IRC §179 in
business in the New York Liberty Zone where the original use
addition to the otherwise allowable deduction. The Jobs and
began with the taxpayer in the Liberty Zone after September 10,
Growth Tax Relief Reconciliation Act of 2003, P.L. 108-27, (the
2001. It also includes certain real property acquired to replace
“2003 Act”) increased the first year federal depreciation deduc-
property damaged or destroyed in the attacks on the World Trade
tion for certain qualified property to 50%.
Center on September 11, 2001. For New York City tax purposes,
property that qualifies as both quot;qualified propertyquot; and quot;qualified
The New York Liberty Zone generally encompasses an area of
New York Liberty Zone propertyquot; will be eligible for enhanced
the borough of Manhattan below Canal Street. quot;Qualified prop-
00620891

3. Form NYC-399Z Page 3
depreciation and IRC §179 benefits as quot;quali- coupled from the federal bonus depreciation nomic Stimulus Act will only affect the applicable
fied New York Liberty Zone property.quot; provision. The Administrative Code also re- City SUV limits with respect to the recovery of
the costs of Qualified Resurgence Zone prop-
quires appropriate adjustments to the amount of
quot;Qualified Resurgence Zone propertyquot; is quot;qual- erty under the Unincorporated Business Tax
any gain or loss included in entire net income or
ified propertyquot; used substantially in the Resur- unincorporated business entire net income upon (UBT) and the Bank Tax.
gence Zone in connection with the active the disposition of any property for which the
conduct of a trade or business where the origi- federal and New York City depreciation deduc- Pursuant to the generally applicable decoupling
nal use began with the taxpayer in the Resur- tions differ. provisions discussed on pages 2 and 3 of this
gence Zone after September 10, 2001. The form, bonus depreciation under IRC 168(k) is
Resurgence Zone (defined in sections 11- Special Provisions for Certain Sport Utility only available for qualified New York Liberty
507(22), 11-602.8(m) and 11-641(p) of the Ad- Vehicles for Tax Periods Beginning on or Zone property and Qualified Resurgence Zone
ministrative Code) generally encompasses the After January 1, 2004 property. For GCT purposes, SUVs cannot qual-
area in Manhattan between Canal Street and ify as either Qualified New York Liberty Zone
Houston Street. Under Section 280F of the Internal Revenue property or Qualified Resurgence Zone property.
Code, the federal depreciation deduction under See Administrative Code §§ 11-602(8)(k) and 11-
The New York City Administrative Code, as sections 167 and 168 of the Internal Revenue 602(8)(o). Therefore, under the GCT no bonus de-
amended pursuant to the authority granted under Code and the expense in lieu of depreciation de- preciation is permitted.
Part G of Chapter 93 of the Laws of 2002, lim- duction under section 179 of the Internal Rev-
its the depreciation deduction for quot;qualified enue Code for certain passenger automobiles are For UBT and Bank Tax purposes, with respect to
property,quot; other than quot;qualified Resurgence generally limited to the amounts provided in sec- SUV’s placed into service after December 31,
Zone property,quot; to the deduction that would tion 280F(a)(1) of the Internal Revenue Code. 2007 and before January 1, 2009, bonus depreci-
have been allowed for such property under IRC Congress passed legislation that limits the ation is available only for SUVs that are “Quali-
§167 had the property been acquired by the tax- amount deductible for certain sport utility vehi- fied Resurgence Zone property.” (In order to be
payer on September 10, 2001, and therefore, not cles. That legislation does not affect the modifi- “Liberty Zone property,” an SUV had to be placed
been eligible for the enhanced deductions al- cations required for City tax purposes described in service before January 1, 2006.) See Finance
lowed by the Act or the 2003 Act. The Admin- below. Memorandum 08-2 for more information.
istrative Code also requires appropriate
adjustments to the amount of any gain or loss For tax years beginning on or after January 1, WHO MUST USE THIS FORM
included in entire net income or unincorporated 2004, in determining ENI of taxpayers, other than
business entire net income upon the disposition A corporation or unincorporated business that
eligible farmers (for purposes of the New York
of any property for which the federal and New files a
State farmers' school tax credit), the amount al-
York City depreciation deductions differ. lowed as a deduction for New York City purposes NYC-3L or NYC-4S
NOTE: Deductions for quot;qualified Resurgence (for either depreciation or expense in lieu of de- General Business Corporations
G
Zone property,quot; quot;qualified New York Liberty preciation) with respect to a sport utility vehicle
NYC-202 or NYC-204
Zone propertyquot; and quot;qualified New York Lib- (SUV) that is NOT a passenger automobile for
Unincorporated Businesses
G
erty Zone leasehold improvementsquot; are not af- purposes of section 280F(d)(5) of the Internal
NYC-1
fected by the above decoupling provisions other Revenue Code is limited to the amount that would
Banking Corporations
G
than for certain sport utility vehicles. The addi- be allowed under section 280F(a)(1) of the Inter-
must use Form NYC-399Z if:
tional first-year expense deductions under IRC nal Revenue Code if the vehicle were a passenger
§179 also are not affected other than for certain automobile as defined in section 280F(d)(5). For 1) it claims for federal purposes a depreciation
sport utility vehicles. See below. all SUVs subject to these special provisions, the deduction pursuant to the Act for quot;qualified
amount allowed as a deduction is calculated as of propertyquot;, or the 2003 Act other than “qual-
Economic Stimulus Act of 2008. Section 102 the date the SUV was actually placed in service ified Resurgence Zone property,” “qualified
of the Economic Stimulus Act of 2008, Pub.L. and not as of September 10, 2001. (The date that New York Liberty Zone property,” and
No. 110-185, 122 Stat. 613 (Feb. 13, 2008) is applicable to qualified property, other than qual- “qualified New York Liberty Zone Lease-
amended IRC section 168(k). As amended, sec- ified Resurgence Zone property and New York hold improvements;” or the Economic
tion 168(k)(1)(A) provides a 50-percent addi- Liberty Zone property, under the general post- Stimulus Act of 2008, other than “Qualified
tional first year depreciation deduction for 9/11/01 decoupling provisions). On the disposi- Resurgence Zone property” and “New York
certain new property acquired by the taxpayer tion of an SUV subject to this limitation, the Liberty Zone property,” or
after December 31, 2007, and before January 1, amount of any gain or loss included in ENI must
2009 (in the case of certain property, before Jan- be adjusted to reflect the limited deductions al- 2) it is not an eligible farmer (for purposes of
uary 1, 2010), so long as no written binding con- lowed for City purposes under this provision. See the New York State farmers' school tax
tract for the acquisition of the property existed Finance Memorandum 08-2, “Application of IRC credit) and it claims for federal purposes a
prior to January 1, 2008. However, as discussed §280F Limits to Sport Utility Vehicles”. depreciation deduction or an expense de-
above the Administrative Code limits the de- duction in lieu of depreciation deduction
preciation for “qualified property” other than Economic Stimulus Act of 2008. As discussed under section 179 of the Internal Revenue
“Qualified Resurgence Zone property” and above, the Economic Stimulus Act of 2008 Code for an SUV that is NOT a passenger
“New York Liberty Zone property” to the de- amended IRC section 168(k) to provide bonus de- automobile for purposes of section
duction that would have been allowed for such preciation for certain property acquired in 2008. 280F(d)(5) of the Internal Revenue Code
property had the property been acquired by the The Act also amended §168(k)(2)(F)(i) to in- (regardless of whether the SUV is “quali-
taxpayer on September 10, 2001, and therefore, crease the first year depreciation allowed under fied property” under the Act or 2003 Act or
except for Qualified Resurgence Zone property, §280F(a)(1)(A) by $8,000 for passenger automo- Economic Stimulus Act of 2008).
as defined in the Administrative Code and “New biles to which the 50-percent additional first year
York Liberty Zone property”, the City has de- deprecation deduction applies. NOTE: the Eco-

4. Form NYC-399Z Page 4
NOTE LINE 1a of prior years’ federal taxable income. For an
Corporations and unincorporated businesses Enter total of columns F and I on lines 4 and 5 SUV subject to the special provisions, the
meeting the criteria set forth in #1 or #2 above of Schedule C, as indicated. amount entered in Column D should include
are not permitted to file on Form NYC-4S EZ any amount deducted under section 179 of the
If you have disposed of “qualified property”
(General Corporation Tax) or Form NYC-202S Internal Revenue Code.
other than “qualified Resurgence Zone prop-
(Unincorporated Business Tax).
erty,” “qualified New York Liberty Zone prop- Column E
erty” or “qualified New York Liberty Zone Enter for each item of property the total amount
SPECIFIC INSTRUCTIONS leasehold improvements,” in any year after the of New York City deductions used in the com-
year of acquisition, you must complete Sched- putation of prior years’ New York City entire net
ule B.
SCHEDULE A1 income.
The purpose of this schedule is to compute the SCHEDULE A2 Column F
allowable New York City depreciation deduction. For any item of property, if column D exceeds
This form has been designed to be used with the Column A column E, subtract column E from column D
federal depreciation schedule, Form 4562 (Rev. Enter the year, make and model for each SUV. and enter the excess in this column.
March 2002 or later). A copy of the federal form
Column G
must accompany this Form NYC-399Z. Tax- Column B
For any item of property, if column E exceeds
payers with SUVs subject to the special provi- Indicate the property class type used or that
column D, subtract column D from column E
sions use Schedule A2 and not Schedule A1. Do would be used in computing federal deprecia-
and enter the excess in this column.
not complete Schedule A1 unless you have prop- tion for each SUV.
erty other than an SUV subject to the general
LINE 2
Column D
post-9/11/01 decoupling provisions.
Add the amounts in column F and enter the total
The amount entered in this column must be
on line 2 and on Schedule C, line 7a.
equal to the cost or other basis used for federal
Column A
purposes prior to any special depreciation al-
Enter a brief description of each item of “qual- LINE 3
lowances for qualified property and prior to the
ified property,” other than “qualified Resur- Add the amounts in column G and enter the total
expense in lieu of depreciation deduction al-
gence Zone property,” qualified New York on line 3 and on Schedule C, line 7b.
lowed under section 179 of the Internal Rev-
Liberty Zone property” and “Qualified New
enue Code.
York Liberty Zone Leasehold improvements,” SCHEDULE C
included in part II or III of federal Form 4562.
Column E
LINE 8
Enter the total New York City depreciation
Column B
Enter the amount on line 8A as an addition on
taken in prior years including, for years prior to
For each item of property listed in column A,
the applicable New York City tax return. Use
2008, the amount of any deduction taken under
indicate the property class type used in com-
the following lines. Attach an explanation.
section 179 of the Internal Revenue Code for
puting the federal deduction. Use “UPM” for
New York City purposes.
property which is depreciated under the unit of
NYC-3L - Schedule B, line 6d
production method provided in IRC §168(f)(1).
NYC-4S - Schedule B, line 4
Column F
For each SUV, enter the sum of the amount of NYC-202 - Schedule B, line10d
Column D
the federal depreciation deduction taken and NYC-204 - Schedule B, line14d
The cost or other basis entered in this column
amount of any federal expense in lieu of depre-
must be the same amount used for federal pur- NYC-1 - Schedule B, line 8
ciation deduction taken under section 179 of the
poses prior to any reduction for the special de-
Internal Revenue Code for the current tax pe- Enter the amount on line 8B as a deduction on
preciation allowance for qualified property.
riod. the applicable New York City tax return. Use
Column G the following lines. Attach an explanation.
Column I
Indicate the depreciation method selected for
The amount entered in column I should be the
the computation of the New York City allow- NYC-3L - Schedule B, line 16
total amount that may be deducted for New
able depreciation deduction. Any method used NYC-4S - Schedule B, line 6b
York City purposes in the current tax year for
to compute depreciation that would have been NYC-202 - Schedule B, line 16
an SUV subject to the special provisions. See
allowed under IRC §167, had the property been NYC-204 - Schedule B, line 20
Finance Memorandum 08-2, “Application of
acquired on September 10, 2001, will be ac- NYC-1 - Schedule B, line 18
IRC §280F Limits to Sport Utility Vehicles”.
ceptable. This includes such methods as
straight-line depreciation, declining balance de-
preciation, sum-of-the-years-digits method or
SCHEDULE B
any other consistent method.
Column A
Column I
Enter each item of property disposed of during
Enter depreciation computed by the method in-
the taxable year separately. Attach a rider if ad-
dicated in column G computed as IRC §167
ditional room is needed.
would have applied had the property been ac-
quired on September 10, 2001. Total of this col- Column D
umn will be the amount allowable as a deduction Enter for each item of property the total amount
for New York City. of federal deductions used in the computation