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 2 - Residents › Part 115 - New York Itemized Deduction Of A Resident Individual › Section 115.4 - Partners and shareholders of S corporations

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 615(e)
(a)
Partners.
Where a resident individual is a member of a partnership
						and such individual determines New York taxable income by using itemized
						deductions, then such individual's share of any partnership items of deduction
						covered by any of the provisions of section 615 (c) and (d)  of the Tax
						Law and as further specified in sections
						115.2
						and
						115.3 
						of this Part is also subject to modification. The amount of the modification
						should be computed by the partner in accordance with the rules contained in
						section
						117.3 
						of this Article. In such case, the partner should combine such partner's share
						of each modification of a partnership deduction with any corresponding
						modification applicable to such partner's individual Federal itemized
						deductions. This treatment of partnership modifications is different from the
						treatment of estate and trust modifications, which are all combined into a
						single net figure, called the New York fiduciary adjustment, as provided in
						section
						119.1 
						of this Article.
(b)
Shareholders of S corporations.
(1)
					 Where a resident individual is a shareholder of an S corporation for which the
					 election to be treated as a New York S corporation under section 660 (a)  of the Tax Law is in
					 effect, or is a shareholder of an S corporation that cannot make the election
					 provided for under section 660 (a)  of the Tax Law
					 (
e.g.,
a foreign S corporation [
i.e.,
an S
					 corporation that is not incorporated in New York State] that does not do
					 business in New York State, or an S corporation that is taxed under article 9
					 of the Tax Law), and such individual determines New York taxable income by
					 using itemized deductions, then such individual shareholder's share of any S
					 corporation items of deduction covered by any of the provisions of sections 615 (c) and (d)  of the Tax Law and sections
					 115.2
					 and
					 115.3 
					 of this Part, is also subject to modification. The amount of the modification
					 should be computed by the shareholder in accordance with section 617 (a)  of the Tax Law. In
					 such case, the resident individual shareholder should combine the share of each
					 modification of an S corporation deduction with any corresponding modification
					 applicable to such shareholder's individual Federal itemized deductions. This
					 treatment of S corporation modifications is different from the treatment of
					 estate and trust modifications, which are all combined into a single net
					 figure, called the New York fiduciary adjustment, as provided in section
					 119.1 
					 of this Article.
(2) A resident
					 individual shareholder of a foreign S corporation (
i.e.,
an S
					 corporation that is not incorporated in New York State) that does business in
					 New York State, or an S corporation incorporated in New York State, either of
					 which can make the election provided for by section 660 (a)  of the Tax Law but
					 does not, is not subject to the provisions of this subdivision. The shareholder
					 would be required to make the modification required by section 615 (c)(6)  of the Tax
					 Law.
(3) In the case of a New York
					 S termination year (see section 208.1-A of the Tax Law), the amount of the
					 modifications referred to in paragraphs (1) and (2) of this subdivision must be
					 determined in accordance with the provisions of section 612 (s)  of the Tax Law and
					 section
					 112.12 
					 of this Title.