2006 New York Code - Residents; Special Provisions.

 
    §  617-a.  Residents;  special  provisions.  Notwithstanding any other
  provisions of this article, the New York adjusted gross income  and  the
  New  York  taxable  income  of  a  resident  individual  or partner of a
  partnership doing an insurance business as a  member  of  the  New  York
  insurance  exchange described in section six thousand two hundred one of
  the insurance law, shall not include any item of income, gain,  loss  or
  deduction  of  such  business, which is the individual's distributive or
  pro rata share for federal income tax purposes or which  the  individual
  is  required  to  take  into  account  separately for federal income tax
  purposes. Provided however, such individual's New  York  adjusted  gross
  income shall include his distributive or pro rata share of the allocated
  entire  net income as determined by such business under sections fifteen
  hundred three and fifteen hundred four of this  chapter.  In  the  event
  such  allocated  entire  net  income  is  a  loss,  there  shall  not be
  subtracted from federal adjusted gross  income  in  computing  New  York
  adjusted gross income such individual's distributive share of such loss.