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 › Income and Deductions from New York State Sources › Section 132.7 - Deductions with respect to capital losses, net long-term capital gains and net operating losses

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 632(b)(3)
(a) The deductions entering into the Federal
						adjusted gross income of a nonresident individual with respect to (1) capital
						losses, (2) 60 percent of the net capital gain on sales and exchanges after
						October 31, 1978 (50 percent of the net capital gain on sales and exchanges
						before November 1, 1978), and (3) net operating losses, are included in the
						computation of his New York adjusted gross income only to the extent that the
						items of income, gain, loss and deduction entered into his Federal adjusted
						gross income and are based solely on items of income, gain, loss or deduction
						derived from or connected with New York State sources.
(b) The amount of any deduction under this
						section must be computed as it would be computed for Federal income tax
						purposes if the New York items of income, gain, loss and deduction were the
						only items making up the corresponding Federal items of income, gain, loss and
						deduction for the particular year.
(c)
(1) Any
						deduction computed under this section may, by way of carryback or carryover,
						affect the computation of New York adjusted gross income for other years as
						long as such carryback or carryover is based solely on items of income, gain,
						loss and deduction from New York State sources.
Example:
Taxpayer A, a nonresident of New York State for the
						  entire taxable year 1982, had a long-term capital gain from sources without New
						  York State (from the sale of securities) of $20,000 on his Federal income tax
						  return. A also included on his Federal income tax return a long-term capital
						  loss of $8,000 from sources exclusively within New York State (from the sale of
						  owned rental property). For Federal income tax purposes, A has a gain from the
						  sale or exchange of property of $12,000 ($20,000 minus $8,000). On his New York
						  State nonresident personal income tax return, A has only a long-term capital
						  loss of $8,000 as this is the only capital item derived from New York State
						  sources. A is allowed to claim a maximum capital loss deduction of $3,000 on
						  his 1982 New York State nonresident personal income tax return and is allowed a
						  $2,000 long-term capital loss carryover for the following year for New York
						  State personal income tax purposes even though his 1983 Federal income tax
						  return will show no capital loss carryover.
(2)
(i)
						Except as otherwise provided for in subparagraph (ii) of this paragraph, a
						nonresident individual who incurs a net operating loss for New York State
						personal income tax purposes but does not incur a net operating loss for
						Federal income tax purposes is required first to carryback such net operating
						loss to each of the three taxable years preceding the taxable year of such net
						operating loss and then to carry such net operating loss forward to each of the
						15 years following the taxable year of such net operating loss, to the extent
						not absorbed. However, such net operating loss may not be carried back or
						carried forward to a taxable year in which the nonresident individual was or is
						a resident of New York State.
(ii)
						Where a nonresident individual incurs a net operating loss for New York State
						personal income tax purposes but does not incur a net operating loss for
						Federal income tax purposes, such nonresident individual may make an election
						for New York State personal income tax purposes to forego the entire three-year
						carryback period and to carry such net operating loss forward to each of the 15
						years following the taxable year of such net operating loss, to the extent not
						absorbed. This election must be made by filing a New York State nonresident
						personal income tax return for the year of the net operating loss and attaching
						thereto a statement indicating that this election to forego the three-year
						carryback period is being made. This election must be made by the due date of
						the New York State nonresident personal income tax return (including extensions
						of time granted under Part 157 of this Title) for the year of the net operating
						loss. Once an election under this subparagraph to forego the three-year
						carryback period is made, such election may not be revoked.