N.Y. Tax Law § 639 — Accruals upon change of residence

§ 639. Accruals upon change of residence. (a) If an individual changes\nstatus from resident to nonresident he shall, regardless of his method\nof accounting, accrue to the period of residence any items of income,\ngain, loss, deduction, or ordinary income portion of a lump sum\ndistribution accruing prior to the change of status, with the applicable\nmodifications and adjustments to federal adjusted gross income and\nitemized deductions under sections six hundred twelve and six hundred\nfifteen, if not otherwise properly includible or allowable for New York\nincome tax purposes for such period or a prior taxable year under his\nmethod of accounting.\n (b) If an individual changes status from nonresident to resident he\nshall, regardless of his method of accounting, accrue to the period of\nnonresidence any items of income, gain, loss or deduction, or ordinary\nincome portion of a lump sum distribution accruing prior to the change\nof status, with the applicable modifications and adjustments to federal\nadjusted gross income and itemized deductions under sections six hundred\ntwelve and six hundred fifteen, other than items derived from or\nconnected with New York sources, if not otherwise properly includible or\nallowable for New York income tax purposes for such period or for a\nprior taxable year under his method of accounting.\n (c) No item of income, gain, loss, deduction, ordinary income portion\nof a lump sum distribution or modification or adjustment which is\naccrued under this section shall be taken into account in determining\nthe tax under this article for any subsequent taxable year.\n (d) The accruals under this section shall not be required if the\nindividual files with the commissioner a bond or other security\nacceptable to the commissioner, on condition that the amounts accruable\nunder this section are taken into account in determining the tax under\nthis article for one or more subsequent taxable years as if the\nindividual had not changed his resident status.\n (e) The foregoing provisions of this section shall apply if an\nindividual changes his or her status from a resident to nonresident or\nfrom a nonresident to resident during a taxable year, or at the\nbeginning of a taxable year, as a result of a change of domicile or as a\nresult of becoming a resident or nonresident based on the definition\ncontained in subsection (b) of section six hundred five of this article.\n (f) Except as hereinafter provided, where an individual who is a\nmember of a partnership or a shareholder of an S corporation changes\nstatus from resident to nonresident, or from nonresident to resident,\nthe portion of the distributive or pro rata share of income, gain and\nloss (less deductions attributable thereto) from a partnership or S\ncorporation shall be allocated to the resident and nonresident periods\nof the partner or shareholder on a proportionate basis throughout the\ntaxable year of the partnership or S corporation. In such event, the\nportion of the distributive or pro rata share allocated to the period of\nresidency shall be determined based on the number of days of residency\nwithin the reporting period of the partnership or S corporation over the\ntotal number of days in the reporting period of the partnership or S\ncorporation. Provided, however, that the commissioner may require, or\nthe individual may elect, to accrue to the period of residence, and the\nperiod of nonresidence, the portion of the distributive or pro rata\nshare of partnership or S corporation income, gain and loss (less\ndeductions attributable thereto) accruing during the individual's\nrespective resident and nonresident periods in a manner that reflects\nthe date of accrual of said income, gain and loss by the partnership or\nS corporation.\n (g) Except as hereinafter provided, where an individual who is\nbeneficiary of an estate or trust changes status from resident to\nnonresident, or from nonresident to resident, the portion of any estate\nor trust income credited, distributable, payable or required to be\ndistributed to such beneficiary shall be allocated to the resident and\nnonresident periods of the beneficiary on a proportionate basis\nthroughout the taxable year of the estate or trust. In such event, the\nportion of such estate or trust income allocated to the period of\nresidency shall be determined based on the number of days of residency\nwithin the reporting period of the estate or trust. Provided, however,\nthat the commissioner may require, or the beneficiary may elect, to\naccrue to the period of residence, and the period of nonresidence, the\nportion of such estate or trust income accruing during the beneficiary's\nrespective resident and nonresident periods in a manner that reflects\nthe date of accrual of said estate or trust income by the estate or\ntrust.\n (h) If a trust changes its status from resident to nonresident or from\nnonresident to resident, the provisions of subsections (a) through (f)\nof this section shall apply except that the term "individual" shall be\nread as "trust" and reference to "modifications" shall mean those\nmodifications described in section six hundred eighteen.\n