State Issues: New York State Regulations on Repurchase Agreements and Securities Loans
Last Updated: June 9, 2008
Overview:
On December 26, the New York State Department of Taxation and Finance published regulations, that eliminate favorable tax treatment of repurchase agreements held by securities brokers and dealers. Under the regulations, only broker dealers will be required to include income and expenses from repurchase agreements (repos) and securities loans in their computation of business income.
Position:
SIFMA opposes the final regulations published by the New York State Department of Taxation and Finance, which arbitrarily declare that income from repos, reverse repos and securities loans is business income without regard to the economic realities of the transaction.
Status:
On December 26, the New York State Department of Taxation and Finance published the final regulations in the New York State Register. The rules took effect immediately, applicable to the tax returns required to be filed after January 14, 2008.
