(a) Accounting periods and methods.
(1) Accounting periods. A taxpayer's taxable year under this chapter shall be the same as his taxable year for federal income tax purposes.
(2) Change of accounting periods. If a taxpayer's taxable year is changed for federal income tax purposes, his taxable year for purposes of this chapter shall be similarly changed. If a taxable year of less than twelve months results from a change of a taxable year, the city standard deduction and the city exemptions shall be prorated under regulations of the tax commission.
(3) Accounting methods. A taxpayer's method of accounting under this chapter shall be the same as his method of accounting for federal income tax purposes. In the absence of any method of accounting for federal income tax purposes, city taxable income shall be computed under such method as in the opinion of the tax commission clearly reflects income.
(4) Change of accounting methods.
(A) If a taxpayer's method of accounting is changed for federal income tax purposes, his method of accounting for purposes of this chapter shall be similarly changed.
(B) If a taxpayer's method of accounting is changed, other than from an accrual to an installment method, any additional tax which results from adjustments determined to be necessary solely by reason of the change shall not be greater than if such adjustments were ratably allocated and included for the taxable year of the change and the preceding taxable years, not in excess of two, during which the taxpayer used the method of accounting from which the change is made.
(C) If a taxpayer's method of accounting is changed from an accrual to an installment method, any additional tax for the year of such change of method and for any subsequent year which is attributable to the receipt of installment payments properly accrued in a prior year, shall be reduced by the portion of tax for any prior taxable year attributable to the accrual of such installment payments, in accordance with regulations of the tax commission.
(b) City resident and city nonresident defined.
(1) City resident individual. A city resident individual means an individual:
(A) who is domiciled in this city, unless (i) the taxpayer maintains no permanent place of abode in this city, maintains a permanent place of abode elsewhere, and spends in the aggregate not more than thirty days of the taxable year in this city, or (ii) (I) within any period of five hundred forty-eight consecutive days the taxpayer is present in a foreign country or countries for at least four hundred fifty days, and (II) during the period of five hundred forty-eight consecutive days the taxpayer, the taxpayer's spouse (unless the spouse is legally separated) and the taxpayer's minor children are not present in this city for more than ninety days, and (III) during any period of less than twelve months, which would be treated as a separate taxable period pursuant to section 11-1754, and which period is contained within the period of five hundred forty-eight consecutive days, the taxpayer is present in this city for a number of days which does not exceed an amount which bears the same ratio to ninety as the number of days contained in that period of less than twelve months bears to five hundred forty-eight, or
(B) who maintains a permanent place of abode in this city and spends in the aggregate more than one hundred eighty-three days of the taxable year in this city, whether or not domiciled in this city for any portion of the taxable year, unless such individual is in active service in the armed forces of the United States.
(2) City nonresident individual. A city nonresident individual means an individual who is not a city resident.
(3) City resident estate or trust. A city resident estate or trust means:
(A) the estate of a decedent who at his death was domiciled in this city,
(B) a trust, or a portion of a trust, consisting of property transferred by will of a decedent who at his death was domiciled in this city, or
(C) a trust, or portion of a trust, consisting of the property of:
(i) a person domiciled in this city at the time such property was transferred to the trust, if such trust or portion of a trust was then irrevocable, or if it was then revocable and has not subsequently become irrevocable; or
(ii) a person domiciled in this city at the time such trust, or portion of a trust, became irrevocable, if it was revocable when such property was transferred to the trust but has subsequently become irrevocable. For the purposes of the foregoing, a trust or portion of a trust is revocable if it is subject to a power, exercisable immediately or at any future time, to revest title in the person whose property constitutes such trust or portion of a trust, and a trust or portion of a trust becomes irrevocable when the possibility that such power may be exercised has been terminated.
(4) City nonresident estate or trust. A city nonresident estate or trust means an estate or trust which is not a city resident estate or trust.
(5) Cross-reference. For effect of a change of resident status, see section 11-1754.
(D) (i) Provided, however, a resident trust is not subject to tax under this article if all of the following conditions are satisfied:
(I) all the trustees are domiciled outside the city of New York;
(II) the entire corpus of the trusts, including real and tangible property, is located outside the city of New York; and
(III) all income and gains of the trust are derived from or connected with sources outside of the city of New York, determined as if the trust were a non-resident trust.
(ii) For purposes of item (II) of clause (i) of this subparagraph, intangible property shall be located in this city if one or more of the trustees are domiciled in the city of New York.
(iii) Provided further, that for the purposes of item (I) of clause (i) of this subparagraph, a trustee which is a banking corporation as defined in subdivision (a) of section 11-640 of this title and which is domiciled outside the city of New York at the time it becomes a trustee of the trust shall be deemed to continue to be a trustee domiciled outside the city of New York notwithstanding that it thereafter otherwise becomes a trustee domiciled in the city of New York by virtue of being acquired by, or becoming an office or branch of, a corporate trustee domiciled within the city of New York.
(Am. 2018 N.Y. Laws Ch. 59, 4/12/2018, eff. 4/12/2018)