N.Y. Tax Law § 605 — General provisions and definitions

§ 605. General provisions and definitions. (a) Accounting periods and\nmethods. (1) Accounting periods. A taxpayer's taxable year under this\narticle shall be the same as his taxable year for federal income tax\npurposes.\n (2) Change of accounting periods. If a taxpayer's taxable year is\nchanged for federal income tax purposes, his taxable year for purposes\nof this article shall be similarly changed. If a taxable year of less\nthan twelve months results from a change of taxable year, the New York\nstandard deduction and the New York exemptions shall be prorated under\nregulations of the tax commission.\n (3) Accounting methods. A taxpayer's method of accounting under this\narticle shall be the same as his method of accounting for federal income\ntax purposes. In the absence of any method of accounting for federal\nincome tax purposes, New York taxable income shall be computed under\nsuch method as in the opinion of the tax commission clearly reflects\nincome.\n (4) Change of accounting methods. (A) If a taxpayer's method of\naccounting is changed for federal income tax purposes, his method of\naccounting for purposes of this article shall be similarly changed.\n (B) If a taxpayer's method of accounting is changed, other than from\nan accrual to an installment method, any additional tax which results\nfrom adjustments determined to be necessary solely by reason of the\nchange shall not be greater than if such adjustments were ratably\nallocated and included for the taxable year of the change and the\npreceding taxable years, not in excess of two, during which the taxpayer\nused the method of accounting from which the change is made.\n (C) If a taxpayer's method of accounting is changed from an accrual to\nan installment method, any additional tax for the year of such change of\nmethod and for any subsequent year which is attributable to the receipt\nof installment payments properly accrued in a prior year, shall be\nreduced by the portion of tax for any prior taxable year attributable to\nthe accrual of such installment payments, in accordance with regulations\nof the tax commission.\n (b) Resident, nonresident and part-year resident defined. (1) Resident\nindividual. A resident individual means an individual: (A) who is\ndomiciled in this state, unless (i) the taxpayer maintains no permanent\nplace of abode in this state, maintains a permanent place of abode\nelsewhere, and spends in the aggregate not more than thirty days of the\ntaxable year in this state, or (ii) (I) within any period of five\nhundred forty-eight consecutive days the taxpayer is present in a\nforeign country or countries for at least four hundred fifty days, and\n(II) during the period of five hundred forty-eight consecutive days the\ntaxpayer, the taxpayer's spouse (unless the spouse is legally separated)\nand the taxpayer's minor children are not present in this state for more\nthan ninety days, and (III) during the nonresident portion of the\ntaxable year with or within which the period of five hundred forty-eight\nconsecutive days begins and the nonresident portion of the taxable year\nwith or within which the period ends, the taxpayer is present in this\nstate for a number of days which does not exceed an amount which bears\nthe same ratio to ninety as the number of days contained in that portion\nof the taxable year bears to five hundred forty-eight, or\n (B) who maintains a permanent place of abode in this state and spends\nin the aggregate more than one hundred eighty-three days of the taxable\nyear in this state, whether or not domiciled in this state for any\nportion of the taxable year, unless such individual is in active service\nin the armed forces of the United States.\n (2) Nonresident individual. A nonresident individual means an\nindividual who is not a resident or a part-year resident.\n (3) Resident estate or trust. A resident estate or trust means:\n (A) the estate of a decedent who at his death was domiciled in this\nstate,\n (B) a trust, or a portion of a trust, consisting of property\ntransferred by will of a decedent who at his death was domiciled in this\nstate, or\n (C) a trust, or portion of a trust, consisting of the property of:\n (i) a person domiciled in this state at the time such property was\ntransferred to the trust, if such trust or portion of a trust was then\nirrevocable, or if it was then revocable and has not subsequently become\nirrevocable; or\n (ii) a person domiciled in this state at the time such trust, or\nportion of a trust, became irrevocable, if it was revocable when such\nproperty was transferred to the trust but has subsequently become\nirrevocable.\n (D) (i) Provided, however, a resident trust is not subject to tax\nunder this article if all of the following conditions are satisfied:\n (I) all the trustees are domiciled in a state other than New York;\n (II) the entire corpus of the trusts, including real and tangible\nproperty, is located outside the state of New York; and\n (III) all income and gains of the trust are derived from or connected\nwith sources outside of the state of New York, determined as if the\ntrust were a non-resident trust.\n (ii) For purposes of item (II) of clause (i) of this subparagraph,\nintangible property shall be located in this state if one or more of the\ntrustees are domiciled in the state of New York.\n (iii) Provided further, that for the purposes of item (I) of clause\n(i) of this subparagraph, a trustee which is a banking corporation as\ndefined in subsection (a) of section fourteen hundred fifty-two of this\nchapter, as such section was in effect on December thirty-first, two\nthousand fourteen, and which is domiciled outside the state of New York\nat the time it becomes a trustee of the trust shall be deemed to\ncontinue to be a trustee domiciled outside the state of New York\nnotwithstanding that it thereafter otherwise becomes a trustee domiciled\nin the state of New York by virtue of being acquired by, or becoming an\noffice or branch of, a corporate trustee domiciled within the state of\nNew York.\n For the purposes of the foregoing, a trust or portion of a trust is\nrevocable if it is subject to a power, exercisable immediately or at any\nfuture time, to revest title in the person whose property constitutes\nsuch trust or portion of a trust, and a trust or portion of a trust\nbecomes irrevocable when the possibility that such power may be\nexercised has been terminated.\n (4) Nonresident estate or trust. (A) A nonresident estate means an\nestate which is not a resident.\n (B) A nonresident trust means a trust which is not a resident or\npart-year resident.\n (5) Part-year resident individual. A part-year resident individual is\nan individual who is not a resident or nonresident for the entire\ntaxable year.\n (6) Part-year resident trust. A part-year resident trust is a trust\nwhich is not a resident or nonresident for the entire taxable year.\n (c) Tax treatment of charitable contributions for determining\ndomicile. Notwithstanding any other provision of any other law to the\ncontrary, the making of a financial contribution, gift, bequest,\ndonation or any other financial instrument or pledge in any amount or\nthe donation or loan of any object of any value, or the volunteering,\ngiving or donation of uncompensated time, or any combination of the\nforegoing, considered a charitable contribution under subsection (c) of\nsection one hundred seventy of the internal revenue code, or to a\nnot-for-profit organization, as defined in subdivision seven of section\none hundred seventy-nine-q of the state finance law, shall not be used\nin any manner to determine where an individual is domiciled.\n