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

 
    § 11-1715 City itemized deduction of a city resident individual. * (a)
  General.  If  federal  taxable  income  of a city resident individual is
  determined by itemizing deductions from  his  or  her  federal  adjusted
  gross  income,  such  resident individual may elect to deduct his or her
  city itemized deduction in lieu of his or her city  standard  deduction.
  The  city  itemized  deduction  of  a city resident individual means the
  total amount of his  or  her  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.
    * NB There are two sub. (a)'s
    * (a) General. If federal taxable income of a city resident individual
  is determined by itemizing deductions from his  federal  adjusted  gross
  income,  such  resident individual may elect to deduct his city itemized
  deduction in lieu of his city standard deduction.
    The city itemized deduction of a city 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, except as provided for under subdivision  (f)
  of this section.
    * NB Applicable to taxable years beginning after 1987
    (b) Husband and wife.
    (1)  A  husband  and  wife,  both of whom are required to file returns
  under this chapter, 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 required to be determined separately, shall be
  divided between them as  if  their  federal  taxable  incomes  had  been
  determined separately.
    (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  this  city  or   any   other   taxing
  jurisdiction,  except  city  earnings  taxes  on  nonresidents  that are
  imposed upon and paid by taxpayers for  taxable  years  beginning  after
  December  thirty-first,  nineteen  hundred  seventy  and  before January
  first, two thousand, pursuant to the authority of section  twenty-five-m
  of  the  general  city  law,  to  the extent that the amount of such tax
  exceeds the tax computed as if the rates were one-fourth of one  percent
  of wages subject to tax and three-eighths of one percent of net earnings
  from self-employment subject to tax;
    (2)  interest  on  indebtedness  incurred  or continued to purchase or
  carry obligations or securities the interest on which is exempt from tax
  under this chapter; and
    (3) ordinary and  necessary  expenses  paid  or  incurred  during  the
  taxable  year  for:  (i) the production or collection of income which is
  exempt from tax under this chapter, or (ii) 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 chapter, to  the  extent
  that  such  expenses  and premiums are deductible in determining federal
  taxable income.
    (4) premiums paid for long-term care insurance to the extent that such
  premiums are deductible in determining federal taxable income.
    (6) in the case of a shareholder of an S corporation:


    (A) where the election provided for in subsection (a) of  section  six
  hundred  sixty  of the tax law has not been made, S corporation items of
  deduction included in federal itemized deductions, and
    (B)  in the case of a New York S termination year, the portion of such
  items assigned to the period beginning on the day the election ceases to
  be effective, as determined under subdivision (s) of section 11-1712.
    * (7) Five percent of  acquisition-related  interest  (to  the  extent
  deducted  in  the  computation  of  New York itemized deductions without
  regard to this paragraph), in the event of a stock or asset  acquisition
  during  the  taxable  year  or  within  the  three immediately preceding
  taxable  years,  as  the  terms  "stock  or   asset   acquisition"   and
  "acquisition-related  interest" are defined in subsection (t) of section
  six hundred twelve of the tax law.
    * NB Repealed for taxable years beginning on or after January 1, 1997
    (d) Modifications increasing federal itemized  deductions.  The  total
  amount  of  deductions  from  federal  adjusted  gross  income  shall be
  increased by:
    (1) (Reserved.)
    (2) interest on indebtedness incurred  or  continued  to  purchase  or
  carry  obligations or securities the interest on which is subject to tax
  under this chapter but exempt from federal income  tax,  to  the  extent
  that  such interest on indebtedness is not deductible for federal income
  tax purposes and is not subtracted from federal  adjusted  gross  income
  pursuant to paragraph nine of subdivision (c) of section 11-1712; and
    (3)  ordinary  and  necessary  expenses  paid  or  incurred during the
  taxable year for: (i) the production or collection of  income  which  is
  subject to tax under this chapter but exempt from federal income tax, or
  (ii)  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 chapter 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 ten of subdivision (c) of section 11-1712.
    (4) allowable college tuition expenses, as defined in paragraph two of
  subsection  (t) of section six hundred six of the tax law, multiplied by
  the  applicable  percentage.  Such  applicable   percentage   shall   be
  twenty-five  percent  for  taxable  years beginning in two thousand one,
  fifty  percent  for  taxable  years  beginning  in  two  thousand   two,
  seventy-five  percent  for taxable years beginning in two thousand three
  and one hundred percent for taxable years beginning after  two  thousand
  three.  Provided,  however,  no  deduction  shall  be allowed under this
  paragraph to a taxpayer who claims the credit provided under  subsection
  (t) of section six hundred six of the tax law.
    (e)  Modification  of partners and shareholders of S corporations. (1)
  Partners and shareholders of S corporations which are  not  New  York  C
  corporations.  The  amounts  of  modifications  under subdivision (c) or
  under paragraph two or three of subdivision (d) required to be made by a
  partner or by a shareholder  of  an  S  corporation  (other  than  an  S
  corporation which is a New York C corporation), with respect to items of
  deduction  of  a  partnership or S corporation shall be determined under
  section 11-1717.
    (2) Shareholders of S corporations which are New York C  corporations.
  In  the  case of a shareholder of an S corporation which is a New York C
  corporation, the modifications under this section which  relate  to  the
  corporation's  items  of  deduction  shall  not  apply,  except  for the
  modification provided under paragraph six of subdivision (c).


    (3) New York S  termination  year.  In  the  case  of  a  New  York  S
  termination  year,  the amounts of the modifications required under this
  section which relate to the S corporation's items of deduction shall  be
  adjusted  in the same manner that the S corporation's items are adjusted
  under subdivision (s) of section 11-1712.
    (f) The city itemized deduction otherwise allowable under this section
  shall  be  reduced by the sum of the amounts determined under paragraphs
  one and two of this subdivision.
    (1) An amount equal to the city itemized deduction otherwise allowable
  under subdivision (a) of this section, multiplied by a percentage,  such
  percentage  to be determined by multiplying, for taxable years beginning
  in nineteen hundred eighty-eight, ten percent,  and  for  taxable  years
  beginning after nineteen hundred eighty-eight, twenty-five percent, by a
  fraction,
    (A)  in  the  case  of  an  unmarried individual or married individual
  filing a separate return, the numerator of which is the lesser of  fifty
  thousand  dollars or the excess of such individual's city adjusted gross
  income over one hundred thousand dollars and the denominator of which is
  fifty thousand dollars;
    (B) in the case of a married individual filing a  joint  return  or  a
  surviving spouse, the numerator of which is the lesser of fifty thousand
  dollars  or  the  excess of such individual's city adjusted gross income
  over two hundred thousand dollars and the denominator of which is  fifty
  thousand dollars;
    (C)  in the case of a head of household, the numerator of which is the
  lesser of fifty thousand dollars or the excess of such individual's city
  adjusted gross income over one hundred fifty thousand  dollars  and  the
  denominator of which is fifty thousand dollars.
    (2)  An  amount  equal to the city itemized deduction of an individual
  otherwise allowable under subdivision (a) of this section, multiplied by
  a percentage, such percentage  to  be  determined  by  multiplying,  for
  taxable  years  beginning in nineteen hundred eighty-eight, ten percent,
  and for taxable years beginning  after  nineteen  hundred  eighty-eight,
  twenty-five percent, by a fraction, the numerator of which is the lesser
  of  fifty  thousand  dollars  or  the  excess  of such individual's city
  adjusted gross income over four hundred  seventy-five  thousand  dollars
  and the denominator of which is fifty thousand dollars.