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2021 New York Laws
TAX - Tax
Article 22 - Personal Income Tax
Part 2 - Residents
617 - Resident Partners and Shareholders of S Corporations.

Universal Citation:
NY Tax L § 617 (2021)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.
§  617.  Resident  partners  and shareholders of S corporations.   (a)
Partner's and  shareholder's  modifications.  In  determining  New  York
adjusted  gross income and New York taxable income of a resident partner
or a  resident  shareholder  of  an  S  corporation  (other  than  an  S
corporation  which  is  a  New  York  C  corporation),  any modification
described in subsections (b), (c) or (d) of section six hundred  twelve,
subsection  (c)  of section six hundred fifteen or paragraphs (2) or (3)
of subsection  (d)  of  such  section,  which  relates  to  an  item  of
partnership  or  S  corporation income, gain, loss or deduction shall be
made  in  accordance  with  the  partner's  distributive  share  or  the
shareholder's  pro  rata  share, for federal income tax purposes, of the
item to which the modification relates.  Where a partner's  distributive
share or a shareholder's pro rata share of any such item is not required
to be taken into account separately for federal income tax purposes, the
partner's  or  shareholder's  share  of such item shall be determined in
accordance  with  his  share,  for  federal  income  tax  purposes,   of
partnership  or  S corporation taxable income or loss generally.  In the
case of a New York S termination year, his pro rata share  of  any  such
item  shall  be  determined  under subsection (s) of section six hundred
twelve.

(b) Character of items. Each item of partnership and S corporation income, gain, loss, or deduction shall have the same character for a partner or shareholder under this article as for federal income tax purposes. Where an item is not characterized for federal income tax purposes, it shall have the same character for a partner or shareholder as if realized directly from the source from which realized by the partnership or S corporation or incurred in the same manner as incurred by the partnership or S corporation.

(c) New York tax avoidance or evasion. Where a partner's distributive share of an item of partnership income, gain, loss or deduction is determined for federal income tax purposes by special provision in the partnership agreement with respect to such item, and where the principal purpose of such provision is the avoidance or evasion of tax under this article, the partner's distributive share of such item, and any modification required with respect thereto, shall be determined as if the partnership agreement made no special provision with respect to such item.

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