2006 New York Code - City Itemized Deduction Of A Resident Individual.

 
    § 15. City   itemized   deduction  of  a  resident  individual.--  (a)
  General.--If  federal  taxable  income  of  a  resident  individual   is
  determined  by  itemizing  deductions  from  his  federal adjusted gross
  income, he may elect to deduct his city itemized deduction  in  lieu  of
  his  city  standard deduction. The city itemized deduction of a resident
  individual means  the  total  amount  of  his  deductions  from  federal
  adjusted  gross  income,  other  than  federal  deductions  for personal
  exemptions, as provided in the laws of the United States for the taxable
  year, with the modifications specified in this section.
    (b) Husband and wife.--(1) A  husband  and  wife,  both  of  whom  are
  required  to  file  returns  under this local law, shall be allowed city
  itemized deductions only if both elect to take city itemized deductions.
    (2) The total of the city itemized deductions of a  husband  and  wife
  whose  federal taxable income is determined on a joint return, but whose
  city taxable incomes are determined separately, may be taken  by  either
  or divided between them as they may elect.
    (c)  Modifications  reducing  federal itemized deductions.-- The total
  amount of deductions from federal adjusted gross income shall be reduced
  by the amount of such federal deductions for:
    (1) income taxes imposed by the city, this state or any  other  taxing
  jurisdiction;
    (2)  interest  on  indebtedness  incurred  or continued to purchase or
  carry obligations or securities the income from which is exempt from tax
  under this local law; and
    (3) ordinary and  necessary  expenses  paid  or  incurred  during  the
  taxable  year  for  (A)  the production or collection of income which is
  exempt  from  tax  under  this  local  law,  or  (B)   the   management,
  conservation  or maintenance of property held for the production of such
  income, and the amortizable bond premium for the  taxable  year  on  any
  bond the interest on which is exempt from tax under this local law.
    (d)  Modifications  increasing federal itemized deductions.--The total
  amount  of  deduction  from  federal  adjusted  gross  income  shall  be
  increased by:
    (1)  an  amount,  not  exceeding  one  hundred  fifty  dollars  in the
  aggregate, for net premiums paid or incurred by a  taxpayer  during  the
  taxable year with respect to any life insurance or endowment policy upon
  his life;
    (2)  interest  on  indebtedness  incurred  or continued to purchase or
  carry obligations or securities the income from which is subject to  tax
  under  this  local law but exempt from federal income tax, to the extent
  that such interest is not deductible for federal income tax purposes and
  is not  subtracted  from  federal  adjusted  gross  income  pursuant  to
  paragraph six of subdivision (c) of section twelve; and
    (3)  ordinary  and  necessary  expenses  paid  or  incurred during the
  taxable year for (A) the production or collection  of  income  which  is
  subject  to tax under this local law but exempt from federal income tax,
  or (B) the management, conservation or maintenance of property held  for
  the  production of such income, and the amortizable bond premium for the
  taxable year on any bond the interest on which is subject to  tax  under
  this  local  law  but exempt from federal income tax, to the extent that
  such expenses and premiums are not  deductible  in  determining  federal
  adjusted gross income and are not subtracted from federal adjusted gross
  income pursuant to paragraph seven of subdivision (c) of section twelve.
    (e)  Partners.-- The amounts of modifications under subdivision (c) or
  under paragraphs two or three of subdivision (d) required to be made  by
  a  partner  with respect to items of deduction of a partnership shall be
  determined under section seventeen.