N.Y.
Tax Law Section 860
Definitions
(a)
Eligible partnership. Eligible partnership means any partnership as provided for in section 7701(a)(2) of the Internal Revenue Code that has a filing requirement under paragraph one of subsection (c) of § 658 (Requirements concerning returns, notices, records and statements)section six hundred fifty-eight of this chapter other than a publicly traded partnership as defined in section 7704 of the Internal Revenue Code. An eligible partnership includes any entity, including a limited liability company, treated as a partnership for federal income tax purposes that otherwise meets the requirements of this subdivision.(b)
Eligible S corporation. Eligible S corporation means any New York S corporation as defined pursuant to subdivision one-A of § 208 (Definitions)section two hundred eight of this chapter that is subject to tax under § 209 (Imposition of tax)section two hundred nine of this chapter. An eligible S corporation includes any entity, including a limited liability company, treated as an S corporation for federal income tax purposes that otherwise meets the requirements of this subdivision.(c)
Electing partnership. Electing partnership means any eligible partnership that made a valid, timely election pursuant to § 861 (Pass-through entity tax election)section eight hundred sixty-one of this article.(d)
Electing S corporation. Electing S corporation means any eligible S corporation that made a valid, timely election pursuant to § 861 (Pass-through entity tax election)section eight hundred sixty-one of this article that is either an electing resident S corporation or electing standard S corporation.(e)
Taxpayer. Taxpayer means any electing partnership or electing S corporation.(f)
Pass-through entity tax. Pass-through entity tax means the total tax imposed by this article on electing partnerships and electing S corporations.(g)
Direct share of pass-through entity tax. Direct share of pass-through entity tax means the portion of pass-through entity tax calculated on pass-through entity taxable income that is also included in the taxable income of a partner or member of the electing partnership or the taxable income of a shareholder of the electing S corporation under article 22 (Personal Income Tax)article twenty-two of this chapter.(h)
Pass-through entity taxable income. Pass-through entity taxable income means:(1)
In the case of an electing partnership, the sum of (i) all items of income, gain, loss, or deduction derived from or connected with New York sources to the extent they are included in the taxable income of a nonresident partner subject to tax under article twenty-two, under paragraph one of subsection (a) of § 632 (Nonresident partners and electing shareholders of S corporations)section six hundred thirty-two of this chapter;(ii)
all items of income, gain, loss, or deduction to the extent they are included in the taxable income of a resident partner subject to tax under article 22 (Personal Income Tax)article twenty-two of this chapter; and(iii)
all pass-through entity taxes including taxes paid under this article to New York, taxes paid under article 24-B (City Pass-through Entity Tax)article twenty-four-B of this chapter to the city of New York, and taxes paid to other jurisdictions that are substantially similar to the taxes paid under this article, to the extent that, for federal income tax purposes, the taxes are paid and deducted in the taxable year, and are included in the taxable income of the partners subject to tax under article 22 (Personal Income Tax)article twenty-two of this chapter for the taxable year.(2)
In the case of an electing standard S corporation, the sum of (i) all items of income, gain, loss, or deduction derived from or connected with New York sources to the extent they would be included under paragraph two of subsection (a) of § 632 (Nonresident partners and electing shareholders of S corporations)section six hundred thirty-two of this chapter in the taxable income of a shareholder subject to tax under article 22 (Personal Income Tax)article twenty-two of this chapter; and(ii)
all pass-through entity taxes including taxes paid under this article to New York, taxes paid under article 24-B (City Pass-through Entity Tax)article twenty-four-B of this chapter to the city of New York, and taxes paid to other jurisdictions that are substantially similar to the taxes paid under this article, to the extent that, for federal income tax purposes, the taxes are paid and deducted in the taxable year, and are included in the taxable income of the shareholders subject to tax under article 22 (Personal Income Tax)article twenty-two of this chapter for the taxable year.(3)
In the case of an electing resident S corporation, the sum of (i) all items of income, gain, loss, or deduction to the extent they are included in the taxable income of a shareholder subject to tax under article 22 (Personal Income Tax)article twenty-two of this chapter; and(ii)
all pass-through entity taxes including taxes paid under this article to New York, taxes paid under article 24-B (City Pass-through Entity Tax)article twenty-four-B of this chapter to the city of New York, and taxes paid to other jurisdictions that are substantially similar to taxes paid under this article, to the extent that, for federal income tax purposes, the taxes are paid and deducted in the taxable year, and are included in the taxable income of the shareholders subject to tax under article 22 (Personal Income Tax)article twenty-two of this chapter for the taxable year.(i)
Taxable year. An electing partnership’s or electing S corporation’s taxable year pursuant to this article shall be the same as the electing partnership’s or electing S corporation’s taxable year for federal income tax purposes.(j)
Electing resident S corporation. An electing resident S corporation is an electing S corporation that certifies at the time of its election that all of its shareholders are residents of New York for purposes of article 22 (Personal Income Tax)article twenty-two of this chapter.(k)
Electing standard S corporation. An electing standard S corporation is an electing S corporation that is not an electing resident S corporation.
Source:
Section 860 — Definitions, https://www.nysenate.gov/legislation/laws/TAX/860 (updated May 12, 2023; accessed Oct. 26, 2024).
