2023 New York Laws › TAX - Tax › Article 24-A - Pass-Through Entity Tax › 860 - Definitions.

§ 860. Definitions. For purposes of this article:
(a)  Eligible  partnership. Eligible partnership means any partnership
as provided for in section 7701(a)(2) of the Internal Revenue Code  that
has  a  filing  requirement  under  paragraph  one  of subsection (c) of
section six hundred fifty-eight of this chapter other  than  a  publicly
traded  partnership  as  defined in section 7704 of the Internal Revenue
Code. An eligible partnership includes any entity, including  a  limited
liability  company,  treated  as  a  partnership  for federal income tax
purposes that otherwise meets the requirements of this subdivision.
(b) Eligible S corporation. Eligible S corporation means any New  York
S  corporation  as  defined pursuant to subdivision one-A of section two
hundred eight of this chapter that is subject to tax under  section  two
hundred  nine  of  this  chapter. An eligible S corporation includes any
entity,  including  a  limited  liability  company,  treated  as  an   S
corporation  for  federal  income  tax purposes that otherwise meets the
requirements of this subdivision.
(c) Electing partnership.  Electing  partnership  means  any  eligible
partnership that made a valid, timely election pursuant to section eight
hundred sixty-one of this article.
(d)  Electing S corporation. Electing S corporation means any eligible
S corporation that made a valid, timely  election  pursuant  to  section
eight  hundred  sixty-one  of  this  article  that is either an electing
resident S corporation or electing standard S corporation.
(e) Taxpayer. Taxpayer means any electing partnership  or  electing  S
corporation.
(f)  Pass-through  entity tax. Pass-through entity tax means the total
tax imposed by this article on  electing  partnerships  and  electing  S
corporations.
(g)   Direct  share  of  pass-through  entity  tax.  Direct  share  of
pass-through entity tax means the portion  of  pass-through  entity  tax
calculated  on  pass-through entity taxable income that is also included
in the taxable income of a partner or member of the electing partnership
or the taxable income of a shareholder of  the  electing  S  corporation
under article twenty-two of this chapter.
(h)  Pass-through  entity  taxable income. Pass-through entity taxable
income means:  (1) In the case of an electing partnership,  the  sum  of
(i)  all  items  of  income,  gain,  loss,  or deduction derived from or
connected with New York sources to the extent they are included  in  the
taxable  income  of  a  nonresident partner subject to tax under article
twenty-two, under paragraph one of subsection (a) of section six hundred
thirty-two of this chapter; (ii) all items of  income,  gain,  loss,  or
deduction  to  the  extent  they are included in the taxable income of a
resident partner  subject  to  tax  under  article  twenty-two  of  this
chapter;  and  (iii)  all pass-through entity taxes including taxes paid
under this article to New York, taxes paid under  article  twenty-four-B
of  this  chapter  to  the  city  of  New  York, and taxes paid to other
jurisdictions that are substantially similar to  the  taxes  paid  under
this  article,  to the extent that, for federal income tax purposes, the
taxes are paid and deducted in the taxable year, and are included in the
taxable income of the partners subject to tax under  article  twenty-two
of this chapter for the taxable year.
(2)  In the case of an electing standard S corporation, the sum of (i)
all items of income, gain, loss, or deduction derived from or  connected
with  New  York  sources  to  the  extent  they  would be included under
paragraph two of subsection (a) of section  six  hundred  thirty-two  of
this chapter in the taxable income of a shareholder subject to tax under
article  twenty-two  of  this  chapter; and (ii) all pass-through entity
taxes including taxes paid under this article to New  York,  taxes  paid

under article twenty-four-B of this chapter to the city of New York, and
taxes  paid to other jurisdictions that are substantially similar to the
taxes paid under this article, to the extent that,  for  federal  income
tax  purposes,  the taxes are paid and deducted in the taxable year, and
are included in the taxable income of the shareholders  subject  to  tax
under article twenty-two of this chapter for the taxable year.
(3)  In the case of an electing resident S corporation, the sum of (i)
all items of income, gain, loss, or deduction to  the  extent  they  are
included  in  the  taxable  income of a shareholder subject to tax under
article twenty-two of this chapter; and  (ii)  all  pass-through  entity
taxes  including  taxes  paid under this article to New York, taxes paid
under article twenty-four-B of this chapter to the city of New York, and
taxes paid to other jurisdictions  that  are  substantially  similar  to
taxes  paid  under  this article, to the extent that, for federal income
tax purposes, the taxes are paid and deducted in the taxable  year,  and
are  included  in  the taxable income of the shareholders subject to tax
under article twenty-two of this chapter for the taxable year.
(i)  Taxable  year.  An   electing   partnership's   or   electing   S
corporation's taxable year pursuant to this article shall be the same as
the  electing partnership's or electing S corporation's taxable year for
federal income tax purposes.
(j)  Electing  resident  S  corporation.  An   electing   resident   S
corporation  is  an electing S corporation that certifies at the time of
its election that all of its shareholders are residents of New York  for
purposes of article twenty-two of this chapter.
(k)   Electing   standard   S  corporation.  An  electing  standard  S
corporation is an  electing  S  corporation  that  is  not  an  electing
resident S corporation.