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					                               THE TAX COMMISSION OF THE CITY OF NEW YORK
                                 1 Centre Street, Room 936, New York, NY 10007
                                                                                                                  TC201INS
                                         INCOME AND EXPENSE SCHEDULE                                                2004
                                        FOR RENT PRODUCING PROPERTIES

                                     FORM TC201 INSTRUCTIONS FOR 2004

Attachment to application. The income and expense                  must complete Part 4 of TC201 if the property is rented
schedule is an attachment to an application for                    or offered for rent on January 5, 2004. Attach it to the
correction or supplemental application. It is not valid if         application, or submit it at the hearing with Form TC159.
submitted separately. Applications on Form TC101,
TC105, TC106 or TC109 must be filed by March 1,                    Reporting year. A report covering the full calendar year
2004.                                                              ending on December 31, 2003, or full fiscal year ending
                                                                   after July 31, 2003, is considered to be a current
Supplemental applications and affidavits.           For            statement. In many cases the Tax Commission requires
properties assessed for $750,000 or more and for                   a current statement. Only a current statement satisfies
recently acquired properties, if a required schedule of            Finance Department RPIE requirements.
income and expenses was not available in time for
attachment to the original application form, it may be             If the applicant uses a fiscal year for federal income tax
attached to Form TC150 and filed between March 2 and               purposes, the schedule may report income for the most
March 24 in 2004. Form TC159 may be used at a                      recently ended fiscal year, as of a date six months prior
hearing to answer questions in Parts 3 and 4 which were            to the date the application is filed.
left incomplete on the originally submitted schedule.              If a current statement is unavailable, the Tax
See the back page of Form TC159.                                   Commission will accept a statement for the calendar
Who should use this form. Use Form TC201 to report                 year ending December 31, 2002, but only if the applicant
income and expenses from operation of a rental                     operated the property for all of 2002, does not use a
property. For example, an apartment building or a multi-           fiscal year for federal income tax, and the 2004/05 actual
tenant commercial building. If the applicant leases the            assessment is less than $750,000.
entire property to an unrelated person, report the income          The form has space for figures for the year prior to the
and expenses on this form. For example, a vacant lot               reporting year. The Tax Commission requests that
leased to a parking operator or a store building leased to         applicants provide this information, if available for the full
a single tenant.                                                   year prior to the most current year.
A net lessor, leasing to a related lessee that occupies            Definitions. See the TC201 Glossary on a separate
the property, may use Form TC200, Part 5, instead of               sheet for definitions of terms and further information on
TC201. A net lessor, with a related lessee that sublets            completing TC201.
to unrelated tenants, must use TC201.
                                                                   What income and expenses are to be reported.
Cooperatives must use Form TC203, hotels TC208, and                Report all income received or accrued by the applicant
a property used to operate a business such as a public             or related persons in connection with the property.
parking garage or department store TC214.                          Report only actual operating expenses. Do not report
                                                                   projections or reserves. Do not report payments to
TC201 Part 4 information. Nonresidential occupancy                 related persons as expenses, unless disclosure is made
information may be reported line by line separately for            as directed in the TC201 Glossary.
specified floors or for the building as a whole. If reported
separately line by line, each line totals 100% for the             Income and expenses must be itemized as indicated in
space on the floor(s). If reported as a whole, the area of         Parts 6-9. Failure to itemize makes the schedule
each floor is a portion of the entire building area, and the       defective, and review will be denied.
sum of the floor-by-floor subtotals in the right hand              Income from unrelated persons for exterior installations,
column equals 100% of the entire building area.                    signage, or telecommunications equipment should be
Percentages must be provided; approximate gross area,              reported on line g. Identify the source of income
in square feet, may also be provided.                              reported on line g or line o of Part 6. Income from
TC201 Part 4 information for certain applicants not                related persons must be segregated from other income
otherwise required to report rental income and                     and listed only on line i of Part 6.
expenses.      An applicant who owned an income-                   In reporting rental income in Part 6, where the accrual
producing property before January 1, 2004, but is not              basis is employed, and the reporting entity’s leases
required to report income and expenses for an                      provide scheduled increases in rent, do not straight-line
application to be eligible for review under governing law,
                                                               1
rental income as may be required by Financial                     the Finance Department for use in preparing real
Accounting Standard No. 13.                                       property tax assessments.       Exclusively residential
                                                                  properties with ten or fewer apartments and residential
Amortized costs of common area improvements having                properties with up to six apartments and one store are
a useful life of more than one year may be included as            excluded.
miscellaneous expenses on line l in Part 7, if you itemize
these amortized costs in Part 9 and the amount is                 Failure to comply timely results in loss of eligibility for
amortized over the useful life of the item. Common area           review of the assessment by the Tax Commission the
improvements include replacements of existing building            following year and subjects the owner to liability for fines.
components, major repairs, and installation of safety and         If you complete TC201, the Finance Department will
health systems. Examples of replacement costs are                 accept it in satisfaction of the RPIE requirement,
replacements of boilers, roofs, elevators, and residential        provided the following conditions are met:
kitchen appliances and cabinets. Examples of safety
and health systems are brick pointing, fire safety                The schedule must be complete and legible.
systems, and environmental remediation.
                                                                  A photocopy of the entire application, including TC201,
Supplemental information. It is often advisable to                must be filed with the original. (The Tax Commission
supplement the income and expense schedule. Copies                requires that a photocopy be supplied for all
of leases or abstracts, a rent roll, and itemizations of          applications; two copies for assessments over
expenses may be useful. Supplementation is especially             $4,000,000.)
useful when there was no prior filing, there is a single
major tenant, there is a substantial change in the income         The reporting period must be the full calendar year
or expenses from the prior year, or the building has              ending December 31, 2003, or fiscal year ending after
unusual operating characteristics, for example, a larger          July 31, 2003.
than usual building staff. Use Form TC159, if not
attached to the application.                                      If the actual assessment for 2004/05 is greater than
                                                                  $1,000,000 and the property is not exclusively
Accountant certification. If the actual assessment is             residential, Finance requires an RPIE Addendum
$1,000,000 or more, and income exceeds $50,000,                   describing the nonresidential tenancies. It must be
TC201 (or any corrected TC201) must be accompanied                attached or filed separately with the Finance
by Form TC309 Accountant’s Certification, which must              Department.
be signed by an independent certified public accountant
who has conducted an appropriate audit of the                     This schedule may be used to satisfy the RPIE filing
applicant’s records.                                              requirement in relation to the 2005/06 assessment.
                                                                  Otherwise, compliance is satisfied by filing Forms RPIE-
Related parcels. The statement may cover a group of               101 and RPIE-201 with the Finance Department by
parcels operated by the same landlord if one of the               September 1, 2004.
following tests are met: All of the parcels are contiguous.
All of the parcels are situated on the same or adjacent           RPIE filings     with   the   Finance     Department     are
blocks and are operated as an economic unit. All of the           confidential.
parcels are units in a single condominium and are                 Related persons. Related persons include individuals
covered by a single application (or if there are multiple         related by blood, marriage or adoption, individuals and
blocks, by one application per block).                            the business entities they control, business entities
When filing a schedule that covers multiple lots (other           under common control, and fiduciaries and the
than condominium units) observe the following                     beneficiaries for whom they act. A person includes a
requirements:                                                     corporation or other business entity.

Each lot requires a separate application. Attach the              Floor area. Where floor area is called for state the
combined schedule to the application for the first lot in         appropriate gross floor area. If applicant does not have
the group. On the other applications, refer to that block         knowledge of the floor area, these questions may be left
and lot. If the combined schedule is submitted on Form            unanswered.
TC150, file only for the first lot in the group.
                                                                  The Tax Commission application forms               and    all
File Form TC166 listing the related lots in a consolidated        attachments are subject to public disclosure.
unit. See TC166 and TC600A for instructions.
                                                                  Where to get additional forms and information.
Rules based on assessed value relating to accountant              Copies of Tax Commission forms may be obtained at
certification, supplemental applications and reporting            http://www.nyc.gov/html/taxcomm and at Finance
prior calendar year income are governed by the highest            borough assessment offices. Questions about RPIE
assessment in the group.                                          filings, how your assessment was determined, or general
Department of Finance RPIE requirements.         By               questions about real property tax assessments should
September 1 each year, rent-producing properties                  be addressed to Finance.         Contact Finance at
assessed for more than $80,000 must report income to              http://www.nyc.gov/html/dof.

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