New York State: Investment Capital Identification Requirements for Article 9-A Taxpayers

The 2015-2016 New York State budget (Part T of Chapter 59 of the Laws of 2015) made significant changes to the definition of investment capital under Article 9-A of the Tax Law that are effective for tax years beginning on or after January 1, 2015. One of the amendments requires that stock acquired on or after October 1, 2015, must be identified as held for investment in a taxpayer’s records before the close of the day on which the stock was acquired in order to qualify as investment capital and stock acquired before October 1, 2015, must be identified prior to October 1, 2015. This memorandum describes this investment capital identification procedure requirement.