2023 New York Laws › TAX - Tax › Article 22 - Personal Income Tax › Part 3 - Nonresidents and Part-Year Residents › 639 - Accruals Upon Change of Residence.

§ 639. Accruals upon change of residence. (a) If an individual changes
status  from  resident to nonresident he shall, regardless of his method
of accounting, accrue to the period of residence any  items  of  income,
gain,  loss,  deduction,  or  ordinary  income  portion  of  a  lump sum
distribution accruing prior to the change of status, with the applicable
modifications and adjustments  to  federal  adjusted  gross  income  and
itemized  deductions  under  sections six hundred twelve and six hundred
fifteen, if not otherwise properly includible or allowable for New  York
income  tax  purposes  for such period or a prior taxable year under his
method of accounting.
(b) If an individual changes status from nonresident  to  resident  he
shall,  regardless  of his method of accounting, accrue to the period of
nonresidence any items of income, gain, loss or deduction,  or  ordinary
income  portion  of a lump sum distribution accruing prior to the change
of status, with the applicable modifications and adjustments to  federal
adjusted gross income and itemized deductions under sections six hundred
twelve  and  six  hundred  fifteen,  other  than  items  derived from or
connected with New York sources, if not otherwise properly includible or
allowable for New York income tax purposes for  such  period  or  for  a
prior taxable year under his method of accounting.
(c)  No item of income, gain, loss, deduction, ordinary income portion
of a lump sum  distribution  or  modification  or  adjustment  which  is
accrued  under  this  section shall be taken into account in determining
the tax under this article for any subsequent taxable year.
(d) The accruals under this section  shall  not  be  required  if  the
individual  files  with  the  commissioner  a  bond  or  other  security
acceptable to the commissioner, on condition that the amounts  accruable
under  this  section are taken into account in determining the tax under
this article for  one  or  more  subsequent  taxable  years  as  if  the
individual had not changed his resident status.
(e)  The  foregoing  provisions  of  this  section  shall  apply if an
individual changes his or her status from a resident to  nonresident  or
from  a  nonresident  to  resident  during  a  taxable  year,  or at the
beginning of a taxable year, as a result of a change of domicile or as a
result of becoming a resident or nonresident  based  on  the  definition
contained in subsection (b) of section six hundred five of this article.
(f)  Except  as  hereinafter  provided,  where  an individual who is a
member of a partnership or a shareholder of  an  S  corporation  changes
status  from  resident  to nonresident, or from nonresident to resident,
the portion of the distributive or pro rata share of  income,  gain  and
loss  (less  deductions  attributable  thereto)  from a partnership or S
corporation shall be allocated to the resident and  nonresident  periods
of  the  partner  or shareholder on a proportionate basis throughout the
taxable year of the partnership or S corporation.  In  such  event,  the
portion of the distributive or pro rata share allocated to the period of
residency  shall  be determined based on the number of days of residency
within the reporting period of the partnership or S corporation over the
total number of days in the reporting period of  the  partnership  or  S
corporation.  Provided,  however,  that the commissioner may require, or
the individual may elect, to accrue to the period of residence, and  the
period  of  nonresidence,  the  portion  of the distributive or pro rata
share of partnership or  S  corporation  income,  gain  and  loss  (less
deductions   attributable  thereto)  accruing  during  the  individual's
respective resident and nonresident periods in a  manner  that  reflects
the  date of accrual of said income, gain and loss by the partnership or
S corporation.
(g) Except  as  hereinafter  provided,  where  an  individual  who  is
beneficiary  of  an  estate  or  trust  changes  status from resident to

nonresident, or from nonresident to resident, the portion of any  estate
or  trust  income  credited,  distributable,  payable  or required to be
distributed to such beneficiary shall be allocated to the  resident  and
nonresident   periods  of  the  beneficiary  on  a  proportionate  basis
throughout the taxable year of the estate or trust. In such  event,  the
portion  of  such  estate  or  trust  income  allocated to the period of
residency shall be determined based on the number of days  of  residency
within  the  reporting period of the estate or trust. Provided, however,
that the commissioner may require, or  the  beneficiary  may  elect,  to
accrue  to  the period of residence, and the period of nonresidence, the
portion of such estate or trust income accruing during the beneficiary's
respective resident and nonresident periods in a  manner  that  reflects
the  date  of  accrual  of  said estate or trust income by the estate or
trust.
(h) If a trust changes its status from resident to nonresident or from
nonresident to resident, the provisions of subsections (a)  through  (f)
of  this  section shall apply except that the term "individual" shall be
read as "trust"  and  reference  to  "modifications"  shall  mean  those
modifications described in section six hundred eighteen.