N.Y. Tax Law § 860 — Definitions

§ 860. Definitions. For purposes of this article:\n (a) Eligible partnership. Eligible partnership means any partnership\nas provided for in section 7701(a)(2) of the Internal Revenue Code that\nhas a filing requirement under paragraph one of subsection (c) of\nsection six hundred fifty-eight of this chapter other than a publicly\ntraded partnership as defined in section 7704 of the Internal Revenue\nCode. An eligible partnership includes any entity, including a limited\nliability company, treated as a partnership for federal income tax\npurposes that otherwise meets the requirements of this subdivision.\n (b) Eligible S corporation. Eligible S corporation means any New York\nS corporation as defined pursuant to subdivision one-A of section two\nhundred eight of this chapter that is subject to tax under section two\nhundred nine of this chapter. An eligible S corporation includes any\nentity, including a limited liability company, treated as an S\ncorporation for federal income tax purposes that otherwise meets the\nrequirements of this subdivision.\n (c) Electing partnership. Electing partnership means any eligible\npartnership that made a valid, timely election pursuant to section eight\nhundred sixty-one of this article.\n (d) Electing S corporation. Electing S corporation means any eligible\nS corporation that made a valid, timely election pursuant to section\neight hundred sixty-one of this article that is either an electing\nresident S corporation or electing standard S corporation.\n (e) Taxpayer. Taxpayer means any electing partnership or electing S\ncorporation.\n (f) Pass-through entity tax. Pass-through entity tax means the total\ntax imposed by this article on electing partnerships and electing S\ncorporations.\n (g) Direct share of pass-through entity tax. Direct share of\npass-through entity tax means the portion of pass-through entity tax\ncalculated on pass-through entity taxable income that is also included\nin the taxable income of a partner or member of the electing partnership\nor the taxable income of a shareholder of the electing S corporation\nunder article twenty-two of this chapter.\n (h) Pass-through entity taxable income. Pass-through entity taxable\nincome means: (1) In the case of an electing partnership, the sum of\n(i) all items of income, gain, loss, or deduction derived from or\nconnected with New York sources to the extent they are included in the\ntaxable income of a nonresident partner subject to tax under article\ntwenty-two, under paragraph one of subsection (a) of section six hundred\nthirty-two of this chapter; (ii) all items of income, gain, loss, or\ndeduction to the extent they are included in the taxable income of a\nresident partner subject to tax under article twenty-two of this\nchapter; and (iii) all pass-through entity taxes including taxes paid\nunder this article to New York, taxes paid under article twenty-four-B\nof this chapter to the city of New York, and taxes paid to other\njurisdictions that are substantially similar to the taxes paid under\nthis article, to the extent that, for federal income tax purposes, the\ntaxes are paid and deducted in the taxable year, and are included in the\ntaxable income of the partners subject to tax under article twenty-two\nof this chapter for the taxable year.\n (2) In the case of an electing standard S corporation, the sum of (i)\nall items of income, gain, loss, or deduction derived from or connected\nwith New York sources to the extent they would be included under\nparagraph two of subsection (a) of section six hundred thirty-two of\nthis chapter in the taxable income of a shareholder subject to tax under\narticle twenty-two of this chapter; and (ii) all pass-through entity\ntaxes including taxes paid under this article to New York, taxes paid\nunder article twenty-four-B of this chapter to the city of New York, and\ntaxes paid to other jurisdictions that are substantially similar to the\ntaxes paid under this article, to the extent that, for federal income\ntax purposes, the taxes are paid and deducted in the taxable year, and\nare included in the taxable income of the shareholders subject to tax\nunder article twenty-two of this chapter for the taxable year.\n (3) In the case of an electing resident S corporation, the sum of (i)\nall items of income, gain, loss, or deduction to the extent they are\nincluded in the taxable income of a shareholder subject to tax under\narticle twenty-two of this chapter; and (ii) all pass-through entity\ntaxes including taxes paid under this article to New York, taxes paid\nunder article twenty-four-B of this chapter to the city of New York, and\ntaxes paid to other jurisdictions that are substantially similar to\ntaxes paid under this article, to the extent that, for federal income\ntax purposes, the taxes are paid and deducted in the taxable year, and\nare included in the taxable income of the shareholders subject to tax\nunder article twenty-two of this chapter for the taxable year.\n (i) Taxable year. An electing partnership's or electing S\ncorporation's taxable year pursuant to this article shall be the same as\nthe electing partnership's or electing S corporation's taxable year for\nfederal income tax purposes.\n (j) Electing resident S corporation. An electing resident S\ncorporation is an electing S corporation that certifies at the time of\nits election that all of its shareholders are residents of New York for\npurposes of article twenty-two of this chapter.\n (k) Electing standard S corporation. An electing standard S\ncorporation is an electing S corporation that is not an electing\nresident S corporation.\n