Statutes, codes, and regulations
New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCEChapter II - Income Taxes and Estate TaxesSubchapter A - New York State Personal Income Tax Under Article 22 Of The Tax LawArticle 2 - Residents
Part 115 - New York Itemized Deduction Of A Resident Individual
Section 115.5 - Limitation

N.Y. Comp. Codes R. & Regs. tit. 20 § 115.5

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Current through Register Vol. 46, No. 45, November 2, 2024
Section 115.5 - Limitation

Tax Law, § 615(f)

(a) The New York itemized deduction allowable under section 615(a) of the Tax Law (see section 115.1 of this Part) shall be reduced by the sum of the amounts determined under paragraphs (b)(1) and (2) of this section.
(b) For taxable years beginning in 1989 and thereafter.
(1) An amount equal to the itemized deduction otherwise allowable under section 615(a) of the Tax Law (see section 115.1 of this Part) multiplied by 25 percent, the product of which is multiplied by a fraction, the numerator of which is the lesser of $50,000; or
(i) for an unmarried individual, other than a head of household or a surviving spouse, or married individual filing a separate New York State personal income tax return, the excess of such individual's New York adjusted gross income over $100,000;
(ii) for a married individual filing a joint New York State personal income tax return or a surviving spouse, the excess of such individual's New York adjusted gross income over $200,000;
(iii) for an individual who is a head of household, the excess of such individual's New York adjusted gross income over $150,000;

and the denominator of which is $50,000.

(2) An amount equal to the itemized deduction otherwise allowable under section 615(a) of the Tax Law (see section 115.1 of this Part) multiplied by 25 percent, the product of which is multiplied by a fraction, the numerator of which is the lesser of $50,000 or the excess of such individual's New York adjusted gross income over $475,000, and the denominator of which is $50,000.
(c) The provisions of this section may be illustrated for each filing status by the following formulas (as used in these formulas NYAGI means New York adjusted gross income and NYID means New York itemized deduction):
(1) for tax years beginning in 1989 and thereafter:
(i) where New York adjusted gross income does not exceed $475,000;
(a) married filing jointly or surviving spouse

NYID × 25% ×lesser of $50,000 or (NYAGI-$200,000)/$50,000

(b) head of household

NYID × 25% ×lesser of $50,000 or (NYAGI-$150,000)/$50,000

(c) unmarried individual or married filing separately

NYID × 25% ×lesser of $50,000 or (NYAGI-$100,000)/$50,000

Example:

A taxpayer filing as a head of household for the calendar year 1992 has New York adjusted gross income of $230,000 and total New York itemized deduction, before this limitation, of $40,000. The portion of the New York itemized deduction disallowed is computed as follows:

$40,000 × 25% ×lesser of $50,000 or ($230,000-$150,000)/$50,000 =

$40,000 × 25% ×lesser of $50,000 or $(80,000)/$50,000 =

$40,000 × 25% ×$50,000/$50,000 =

$10,000 × 1 = $10,000 itemized deductions disallowed.

(ii) where New York adjusted gross income exceeds $475,000, the following formula is used for all filing statuses;

NYID × 25% + (NYID × 25% ×(lesser of $50,000 or (NYAGI - $475,000)))/$50,000

Example:

A husband and wife filing a joint 1992 New York State resident personal income tax return have New York adjusted gross income of $530,000 and total New York itemized deduction, before this limitation, of $100,000. The portion of their New York itemized deduction disallowed is computed as follows:

$100,000 × 25% + ($100,000 × 25% × (lesser of $50,000 or ($530,000 - $475,000)))/$50,000 =

$25,000 + ($100,000 × 25% ×(lesser of $50,000 or $55,000))/$50,000 =

$25,000 + ($100,000 × 25% ×($50,000))/$50,000 =

$25,000 + ($100,000 × 25% × 1) =

$25,000 + $25,000 = $50,000 itemized deductions disallowed.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 115.5