NY Judges Reject Partnership’s Bid for City Business Tax Break

A federal business tax deduction doesn’t also apply to New York City’s unincorporated business tax, a state appeals court affirmed Thursday.

Architectural, urban planning, and engineering firm Skidmore, Owings & Merrill LLP asked the court to overturn a 2023 city tax tribunal decision upholding the city’s assessment of more than $720,000 in UBT for tax years 2011 and 2012. The tribunal held that payments Skidmore made to a special related entity were payments to the LLP’s partners for their services and therefore weren’t deductible.

The tribunal’s finding that Skidmore improperly deducted the payments “was supported by substantial evidence and not ...