1. (a) All business receipts earned by the taxpayer in New York State are allocated to New York State. Receipts from the sale of real property held by the taxpayer as a dealer for sale to customers in the regular course of its business are business receipts and are allocated to New York State if the real property was located in New York State. Receipts from the sale of intangible personal property included in business capital, held by the taxpayer as a dealer for sale to customers in the regular course of its business, are business receipts and are allocated to New York State if the sales were made in New York State or through a New York State office of the taxpayer.

2. (b) For taxable periods commencing on and after January 1, 1978, security and commodity brokers participating in an underwriting syndicate must allocate gross receipts attributable to the primary spread in the following manner:

   1. (1) Retained securities. One hundred percent of the receipts attributable to the primary spread must be allocated to New York State when such receipts are attributable to the underwritten securities which are retained and sold wholly at or through a New York State office of the taxpayer. If a portion of the securities retained by the taxpayer are sold at or through an office of the taxpayer located outside New York State, the receipts representing the primary spread must be allocated by a percentage by which the number of underwritten shares sold at or through a New York State office of the taxpayer bears to the total number of underwritten shares sold by such taxpayer. The term primary spread means the difference between the price paid by the underwriters to the issuer for the securities being marketed and the price received from the subsequent sale of the underwritten securities at the initial public offering price, less the manager's fee and selling concession. The term initial public offering price means the price agreed upon by the managing underwriter and the issuer at which the securities are to be offered to the public (including any change thereof which is required to be reported to the Federal Securities and Exchange Commission) during the term or length of the agreement among underwriters.
   2. (2) Group sales. Receipts attributable to the primary spread, from the sale of securities purchased (or committed to be purchased) from an issuer, which are reserved by the managing underwriter and sold on behalf of the account of participating underwriters, including the manager, to persons selected by such manager, must be allocated 100 percent to New York State when the principal office of the managing underwriter is located in New York State. In the case of co-managers, if the principal office of one or more of such co-managers is located within New York State and the principal office of one or more of such co-managers is located outside the State, the receipts attributable to the primary spread, from the group sale of underwritten securities, must be allocated in accordance with the ratio that the number of managing underwriters whose principal office is located in New York State bears to the total number of managing underwriters.
   3. (3) Directed or designated sales. Receipts attributable to the primary spread received by a member of the underwriting syndicate, from the sale of securities directly from the managing underwriter to persons who have directed such manager that the sale be made on behalf of the account of such member, must be allocated to New York State when the office of such member which is responsible for the sale is located within New York State.

3. (c) For taxable periods commencing on and after January 1, 1978, security and commodity brokers participating in an underwriting syndicate must allocate the gross receipts attributable to the selling concession (secondary fees) in the following manner:

   1. (1) Retained securities. Where a taxpayer is a member of the selling group and participates for a fee in the marketing of the underwritten securities, the receipts representing the selling concession must be allocated 100 percent to New York State where the underwritten securities which have been retained by the taxpayer are sold wholly at or through a New York State office of the taxpayer. If a portion of the securities are sold at or through an office of the taxpayer located outside New York State, the receipts representing the selling concession shall be allocated by a percentage by which the number of underwritten shares sold at or through a New York State office of the taxpayer bears to the total number of underwritten shares sold by such taxpayer.
   2. (2) Group sales. Receipts attributable to the selling concession, from the sale of securities, purchased or committed to be purchased from an issuer, which are reserved by the managing underwriter and sold on behalf of the account of the participating underwriters, including the manager, to persons selected by such manager, must be allocated 100 percent to New York State when the principal office of the managing underwriter is located in New York State. In the case of co-managers, if the principal office of one or more of such co-managers is located within New York State and the principal office of one or more of such co-managers is located outside the State, the receipts attributable to the selling concession, from a group sale of underwritten securities, must be allocated in accordance with the ratio that the number of managing underwriters whose principal office is located in New York State bears to the total number of managing underwriters.
   3. (3) Directed or designated sales. Receipts attributable to the selling concession received by a member of the underwriting syndicate, from the sale of securities directly from the managing underwriter to persons who have directed such manager that the sale be made on behalf of the account of such member, must be allocated to New York State when the office of such member which is responsible for the sale is located within New York State.
4. (d) A security and commodity broker allocating receipts pursuant to subdivisions (b) and (c) of this section must submit a schedule setting forth the basis and computation of each category of receipts within and without New York State.
5. (e) Receipts from sales of capital assets are not business receipts and are not included in the receipts factor of the business allocation percentage. For example, the receipts from the sale of a capital asset as scrap or at a gain is not included in the receipts factor of the business allocation percentage. The term capital assets means property that is not held by the taxpayer for sale to customers in the regular course of its business.
6. (f) Business receipts are not considered to have been earned by the taxpayer in New York State merely because they were payable in New York State or were actually received in New York State.

Tax Law, § 210(3)(a)(2)