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

 
    §  615.  New  York  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 New York itemized deduction  in  lieu
  of his New York standard deduction. The New York 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,
  except as provided for under subsection (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 article, shall be allowed New York itemized  deductions  only
  if both elect to take New York itemized deductions.
    *  (2)  The total of the New York itemized deductions of a husband and
  wife whose federal taxable income is determined on a joint  return,  but
  whose New York taxable incomes are required to be determined separately,
  shall  be  divided  between them as if their federal taxable incomes had
  been determined separately.
    * NB Applicable to taxable years beginning after 1986.
    (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  state  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,  nineteen  hundred  eighty-eight,  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;
    * NB Applies to taxable years beginning prior to 1988
    *  (1)  income  taxes  imposed  by  this  state  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;
    * NB Applies to taxable years beginning after 1987
    (2) interest on indebtedness incurred  or  continued  to  purchase  or
  carry obligations or securities the interest on which is exempt from tax
  under this article; 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 article, 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 article.
    * NB Applies to taxable years prior to 1986
    *  (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 article, 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 article, to the extent
  that such expenses and premiums are deductible  in  determining  federal
  taxable income.
    * NB Applies to taxable years beginning after 1986
    (4) premiums paid for long-term care insurance to the extent that such
  premiums are deductible in determining federal taxable income.
    *  (5)  real  property taxes imposed by this state or any other taxing
  jurisdiction on renters pursuant to section nine hundred twenty-six-a of
  the real property tax law.
    * NB (Effective pending ruling by Commissioner of Internal Revenue)
    (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  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 subsection (s) of section six hundred
  twelve.
    * (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.
    * 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) an amount, not exceeding one hundred  and  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; provided, however, for taxable years  beginning  on  or  after
  January  first,  nineteen  hundred  seventy-one,  such  amount shall not
  exceed one hundred dollars in  the  aggregate;  and  for  taxable  years
  beginning  on or after January first, nineteen hundred seventy-two, such
  amount shall not exceed fifty dollars in the aggregate; and for  taxable
  years   beginning   on   or   after   January  first,  nineteen  hundred
  seventy-three, no such increase in the amount of deductions from federal
  adjusted gross income shall be allowed;
    (2) interest on indebtedness incurred  or  continued  to  purchase  or
  carry  obligations or securities the interest on which is subject to tax
  under this article 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  (9)  of  subsection  (c) of section six hundred
  twelve; 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 article 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 article 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 (10) of subsection  (c)  of  section  six  hundred
  twelve.
    (4) allowable college tuition expenses, as defined in paragraph two of
  subsection (t) of section six hundred six of this article, 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 this article.
    (e) Modifications 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 subsection (c) or under
  paragraph (2) or (3) of subsection (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 six
  hundred seventeen.
    (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 subsection (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 subsection (s) of section six hundred twelve.
    (f) The New York itemized deduction  otherwise  allowable  under  this
  section  shall  be  reduced  by  the sum of the amounts determined under
  paragraphs one and two of this subsection.
    (1) An amount equal to  the  New  York  itemized  deduction  otherwise
  allowable  under  subsection  (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 New York 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  New  York  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  New
  York  adjusted  gross income over one hundred fifty thousand dollars and
  the denominator of which is fifty thousand dollars.
    (2) An  amount  equal  to  the  New  York  itemized  deduction  of  an
  individual  otherwise  allowable  under  subsection (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 New York adjusted gross income  over  four  hundred
  seventy-five  thousand  dollars  and  the  denominator of which is fifty
  thousand dollars.