N.Y. Comp. Codes R. & Regs. tit. 20 § 141.1

Current through Register Vol. 46, No. 45, November 2, 2024

Section 141.1 - New York State minimum taxable income of nonresidents

Tax Law, § 641(a)

(a)General.

The New York State minimum taxable income of a nonresident individual or of a nonresident estate or trust is the total of the New York items of tax preference reduced, but not below zero, by the aggregate of the following:

(1) the specific deduction described in section 141.2 of this Part;

(2) the New York State personal income tax described in paragraph (b)(2) of this section; and

(3) any net operating loss for the taxable year available as a carryover to a succeeding taxable year which was derived from or connected with New York State sources, as determined in accordance with the provisions of section 132.7 of this Article (see subdivision [c] of this section).

(b)Definitions.

(1) The New York items of tax preference of a nonresident individual, estate or trust are those Federal items of tax preference, as defined in the laws of the United States (see section 57 of the Internal Revenue Code), which are derived from or connected with New York State sources, modified in accordance with the modifications, described in sections 122.3 and 122.6 of this Title, which are derived from or connected with New York State sources, and increased by any net operating loss used to reduce the sum of the New York items of tax preference in a previous year (see paragraph [c] [2] of this section). The New York items of tax preference of a nonresident estate or trust include only those items of tax preference which are properly apportioned to such estate or trust in accordance with the laws of the United States and which are derived from or connected with New York State sources.

(2) For purposes of this Part, the New York State personal income tax is the ordinary tax, reduced by the following credits:

(i) the investment credit and the retail enterprise credit (see section 106.1 of this Title);

(ii) the credit for household and dependent care services necessary for gainful employment (see section 106.3 of this Title);

(iii) the credit for sales or compensating use taxes paid upon the purchase of any catalytic, purifying or bleaching chemical agent (see section 106.4 of this Title);

(iv) the mortgage recording tax credit (see section 106.6 of this Title); and

(v) the accumulation distribution credit allowable to certain nonresident beneficiaries of a trust (see Part 140 of this Article).

(3) The term derived from or connected with New York State sources has the same meaning in this Part as it does in Part 132 of this Article.

(c)Net operating losses.

(1) Net operating loss reduction. The amount of net operating loss for the taxable year of a nonresident individual, estate or trust is determined in accordance with the provisions of section 132.7 of this Article. The amount of such net operating loss which is available as a carryover to a succeeding taxable year is to be subtracted from the amount by which the sum of the New York items of tax preference, derived from or connected with New York State sources, exceed the total of the applicable specific deduction and the New York State personal income tax for the year.

(2) Net operating loss restoration. The amount of the net operating loss, used in a prior year to reduce the sum of the New York items of tax preference of a nonresident taxpayer, must be treated as a New York item of tax preference derived from or connected with New York State sources, and added to the total Federal items of tax preference derived from or connected with New York State sources in the next succeeding taxable year or years, in order of time, in which such net operating loss carryover reduces Federal taxable income. For purposes of this paragraph, Federal taxable income must be computed using only those items of income, gain, loss or deduction which are derived from or connected with New York State sources. For priority of reduction, see section 122.1(c)(2)(ii) of this Title.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 141.1