New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter II - Income Taxes and Estate Taxes › Subchapter A - New York State Personal Income Tax Under Article 22 Of The Tax Law › Article 3 - Nonresidents › Part 132 - New York Adjusted Gross Income of a Nonresident Individual › New York Adjusted Gross Income Defined › Section 132.1 - New York adjusted gross income of a nonresident individual

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 632(a)
(a)
Items included in New York adjusted
						gross income.
The New York adjusted gross income of a nonresident
						  individual includes all items of income, gain, loss and deductions which enter
						  into his Federal adjusted gross income; limited, however, to the portions of
						  such items derived from or connected with New York State sources as determined
						  under sections
						  132.2
						  through
						  132.11 
						  of this Part. In addition to the items realized directly by him, it includes
						  (1) his distributive share of partnership income, gain, loss and deduction (see
						  Part 137 of this Article), and (2) his share of estate or trust income, gain,
						  loss and deduction (see Part 139 of this Article). The items thus determined
						  are subject to the same modifications as are applicable for a resident
						  individual under Part 112 of this Title.
Example:
A, a nonresident, receives during 1980 the following
						  items of income:
1.
Income from salary as a corporate officer paid in
									 New York State by check on a New York City bank. For 1980, 20 percent of A's
									 working days were properly considered days worked outside of New York
									 State.
$10,000
2.
Distributive share of income from a partnership
									 carrying on business as a manufacturer's representative both within and without
									 New York State: 70 percent of the income of the partnership was properly
									 allocable to New York State.
$35,000
3.
Net rental income from an apartment house located
									 in New Jersey.
$ 3,000
4.
A's share as beneficiary under a trust under the
									 will of A's father, who died a resident of New York State. Income of the trust
									 consists of: Net rentals from medical office building located in New York
									 City.
$ 4,000
Dividends from stock of a New York State
									 corporation.
$ 6,000
A's share as 50-percent beneficiary.
$ 5,000
The net amount of A's items of income
									 and gain entering into his Federal adjusted gross income derived from or
									 connected with New York State sources is determined as follows:
1.
Salary (determined on the basis of days worked in
									 and out of New York State and not by where payment was made) (see section
									 132.18 
									 of this Part for applicable allocation rules).
$ 8,000
2.
Partnership income (determined on the basis of
									 the partnership's 70-percent allocation) (see Part 137 of this Article for
									 applicable allocation rules).
$24,500
3.
Income from New Jersey apartment house (entirely
									 excluded) (see section
									 132.3 
									 of this Part).
-0-
4.
Income from trust (limited to A's 50-percent
									 share of New York State rental income because stock dividends are intangibles
									 and not taxable for New York State personal income tax purposes) (see Part 139
									 of this Article).
$ 2,000
Total income and gain derived from or connected
									 with New York State sources.
$34,500
(b)
Modifications of Federal adjusted
						gross income.
The modifications of Federal adjusted gross income
						  described in sections
						  112.2 
						  -112.5 and 112.7-112.9 of this Title which are made by a resident individual in
						  determining his New York adjusted gross income are also made by a nonresident
						  individual when the modifications relate to income (gain or loss) derived from
						  New York State sources. Modifications of a nonresident individual include
						  modifications which relate to his share of partnership income derived from or
						  connected with New York State sources (see Part 137 of this Article) and his
						  share of "net change" from New York State sources from an estate or trust (see
						  Part 139 of this Article).
Example:
B, a nonresident, is a partner in a partnership engaged
						  in the securities business as a broker and dealer holding all of its securities
						  for sale to customers in the ordinary course of business and not as
						  investments. All of the partnership's business is carried on in New York State.
						  B's distributive share of partnership income for 1977 includes the following
						  items of income and deduction:
Interest income on obligations of states other
									 than New York
$2,000
New York State unincorporated business income tax
									 of the partnership, deducted in determining B's distributive share of income of
									 the partnership for Federal income tax purposes
$ 250
Interest or indebtedness incurred by the
									 partnership to carry United States government bonds
$ 100
Interest on United States government bonds
$1,000
Interest and dividends on securities of limited
									 dividend housing companies organized under New York State law
$ 100
Refund of New York State unincorporated business
									 income taxes which were deducted for Federal income tax purposes in determining
									 the distributive shares of taxable income of the partnership for a prior
									 taxable year, and which are included in partnership income for Federal income
									 tax purposes
$ 100
Since the partnership carried on its business
									 entirely in New York State, all of the foregoing items are derived from or
									 connected with New York State sources. Accordingly, the following modifications
									 are made in determining B's New York adjusted gross income:
Modifications increasing Federal adjusted
									 gross income:
Interest income on obligations of states other
									 than New York
$2,000
New York State unincorporated business income tax
									 of the partnership, deducted in determining B's distributive share of income of
									 the partnership for Federal income tax purposes
$ 250
Interest on indebtedness incurred by the
									 partnership to carry United States government bonds
$ 100
Total modifications increasing Federal adjusted
									 gross income
$2,350
Modifications reducing Federal adjusted
									 gross income:
Interest on United States government bonds
$1,000
Interest and dividends on securities of limited
									 dividend housing companies organized under New York State law
$ 100
Refund of New York State unincorporated business
									 income taxes which were deducted for Federal income tax purposes in determining
									 the distributive shares of taxable income of the partnership for a prior
									 taxable year, and which are included in partnership income for Federal income
									 tax purposes
$ 100
Total modifications reducing Federal adjusted
									 gross income
$1,200