N.Y.
Tax Law Section 867
Definitions
(a)
City pass-through entity tax. City pass-through entity tax means the total tax imposed by this article on an electing city partnership or an electing city resident S corporation.(b)
City pass-through entity taxable income. City pass-through entity taxable income means:(1)
In the case of an electing city partnership, the sum of (i) all items of income, gain, loss, or deduction to the extent they are included in the city taxable income of a partner or member of the electing city partnership who is a city taxpayer; and(ii)
all pass-through entity taxes including taxes paid under article 24-A (Pass-through Entity Tax)article twenty-four-A of this chapter to New York, taxes paid under this article to the city of New York, and taxes paid to other jurisdictions that are substantially similar to taxes paid under article 24-A (Pass-through Entity Tax)article twenty-four-A of this chapter, to the extent that, for federal income tax purposes, the taxes were paid and deducted in the taxable year, and they 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 city resident S corporation, the sum of (i) all items of income, gain, loss, or deduction to the extent they would be included in the city taxable income of a shareholder of the electing city resident S corporation who is a city taxpayer; and(ii)
all pass-through entity taxes including taxes paid under article 24-A (Pass-through Entity Tax)article twenty-four-A of this chapter to New York, taxes paid under this article to the city of New York, and taxes paid to other jurisdictions that are substantially similar to taxes paid under article 24-A (Pass-through Entity Tax)article twenty-four-A of this chapter, to the extent that, for federal income tax purposes, the taxes were paid and deducted in the taxable year, and they 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.(c)
City resident individual. City resident individual has the same meaning as that term is defined in subsection (a) of § 1305 (City resident and city nonresident defined)section thirteen hundred five of this chapter.(d)
City taxable income. City taxable income has the same meaning as that term is defined in § 1303 (City taxable income)section thirteen hundred three of this chapter.(e)
City taxpayer. A city taxpayer means:(1)
a city resident individual, as defined in subsection (a) of § 1305 (City resident and city nonresident defined)section thirteen hundred five of this chapter; and(2)
a city resident trust or estate, as defined in subsection (c) of § 1305 (City resident and city nonresident defined)section thirteen hundred five of this chapter.(f)
Direct share of city pass-through entity tax. Direct share of city pass-through entity tax means the portion of city pass-through entity tax calculated on city pass-through entity taxable income of a city taxpayer who is a partner or member of the electing city partnership or a city taxpayer who is a shareholder of the electing city resident S corporation.(g)
Electing city partnership. Electing city partnership means any eligible partnership that made a valid, timely election pursuant to § 868 (City pass-through entity tax election)section eight hundred sixty-eight of this article.(h)
Electing city resident S corporation. Electing city resident S corporation means any eligible resident S corporation that made a valid, timely election pursuant to § 868 (City pass-through entity tax election)section eight hundred sixty-eight of this article.(i)
Eligible city partnership. Eligible city 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, where at least one partner or member is a city taxpayer. An eligible city 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 subsection.(j)
Eligible city resident S corporation. Eligible city resident 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 that has only city taxpayer shareholders. An eligible city resident 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 subsection.(k)
Taxable year. An electing city partnership’s or electing city resident S corporation’s taxable year pursuant to this article shall be the same as the electing city partnership’s or electing city resident S corporation’s taxable year for federal income tax purposes.
Source:
Section 867 — Definitions, https://www.nysenate.gov/legislation/laws/TAX/867 (updated May 12, 2023; accessed Oct. 26, 2024).
