N.Y. Comp. Codes R. & Regs. tit. 20 § 141.2

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

Section 141.2 - Specific deduction

Tax Law, § 641(c)

(a)Nonresident individuals.

The specific deduction of a nonresident individual, or married individuals filing a joint return, is an amount which bears the same ratio to $5,000 (or $2,500, in the case of a married individual filing a separate return) as the New York items of tax preference (determined as explained in section 141.1[b][1] of this Part) bear to the total New York items of tax preference (determined as explained in section 122.1[b] [1] of this Title), computed as if such nonresident taxpayer were a resident. The amount of the specific deduction allowable under this paragraph may not exceed $5,000 in the case of nonresident individuals, or married individuals filing a joint return, or $2,500 in the case of a married individual filing a separate return.

(b)Nonresident estates and trusts.

(1) The specific deduction of a nonresident estate or trust is an amount, not to exceed $5,000, which bears the same ratio to $5,000 as its New York items of tax preference (determined as explained in section 141.1[b][1] of this Part) bear to the sum of the New York items of tax preference (determined as explained in section 122.1[b][1] of this Title) of the estate or trust (including the portion thereof allocated to the beneficiaries of such estate or trust), as if such nonresident estate or trust were a resident estate or trust.

(2) Reduction of the specific deduction is required only in cases where the fiduciary has allocated items of tax preference to the beneficiaries of the estate or trust during the taxable year.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 141.2