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 4 - New York State Income Tax Returns and Payment of Income Tax › Part 154 - Change Of Resident Status During Year › New York Taxable Income, New York Personal Service Taxable Income and New York State Minimum Taxable Income › Section 154.8 - Net operating loss deduction

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
						Change of resident status from resident to nonresident. Where the Federal
						income tax return of an individual or of a trust, for a taxable year in which
						such individual or trust changes resident status from that of a resident to a
						nonresident, includes a net operating loss deduction, the amount of net
						operating loss deduction for Federal income tax purposes will be considered a
						net operating loss deduction on the New York State income tax return for the
						period of residence. Any excess of the amount of the net operating loss
						deduction not applied on the New York State income tax return for the period of
						residence may be applied on the New York State income tax return for the period
						of nonresidence, but only to the extent that such excess is based solely on
						items of income, gain, loss and deduction derived from or connected with New
						York State sources (see section
						132.7 
						and Part 138 of this Title).
(b)
						Change of resident status from nonresident to resident. In computing the New
						York adjusted gross income of an individual to be reported on the New York
						State personal income tax return for the period of nonresidence or in computing
						the New York taxable income of a trust for the period of nonresidence, any net
						operating loss deduction must, as required by section
						132.7 
						and Part 138 of this Title, be based solely on items of income, gain, loss and
						deduction derived from or connected with New York State sources. For purposes
						of this section, the source of the net operating loss must be determined by
						reference to the source of the items of income, gain, loss and deduction for
						the year or years in which the net operating loss was sustained. A net
						operating loss deduction may be applied to the New York State income tax return
						for the period of residence in the amount which would be allowed as a net
						operating loss deduction for Federal income tax purposes, computed, in
						accordance with Federal rules and practice applicable to net operating loss
						deductions, as if a Federal income tax return had been filed for the period of
						residence.
(c) A net operating
						loss, sustained in the year the change of resident status occurs, may be a
						carry-back or a carry-over to another taxable year under the following
						conditions:
(1) If the taxable year to which
						the carry-back or carry-over is to be applied is a taxable year in which an
						individual or a trust is a resident, such carry-back or carry-over may be
						applied on the New York State resident income tax return to the extent such
						carry-back or carry-over is includible as a carry-back or carry-over in the
						computation of Federal adjusted gross income of an individual or Federal
						taxable income of a trust for such taxable year, and only if the taxable year
						for which the carry-back or carry-over is to be applied is a taxable year under
						article 22 of the Tax Law.
(2) If
						the taxable year to which the carry-back or carry-over is to be applied is a
						taxable year in which an individual or a trust is a nonresident, such
						carry-back or carry-over may be applied on the New York State nonresident
						income tax return to the extent that such carry-back or carry-over is based
						solely on items of income, gain, loss or deduction derived from or connected
						with New York State sources, and only if the taxable year for which the
						carry-back or carry-over is to be applied is a taxable year under article 22 of
						the Tax Law.