N.Y. General City Law art. 2-D, § 15: City itemized deduction of a resident individual

§ 15. City itemized deduction of a resident individual.-- (a)

General.--If federal taxable income of a resident individual is

determined by itemizing deductions from his federal adjusted gross

income, he may elect to deduct his city itemized deduction in lieu of

his city standard deduction. The city itemized deduction of a resident

individual means the total amount of his deductions from federal

adjusted gross income, other than federal deductions for personal

exemptions, as provided in the laws of the United States for the taxable

year, with the modifications specified in this section.

(b) Husband and wife.--(1) A husband and wife, both of whom are

required to file returns under this local law, shall be allowed city

itemized deductions only if both elect to take city itemized deductions.

(2) The total of the city itemized deductions of a husband and wife

whose federal taxable income is determined on a joint return, but whose

city taxable incomes are determined separately, may be taken by either

or divided between them as they may elect.

(c) Modifications reducing federal itemized deductions.-- The total

amount of deductions from federal adjusted gross income shall be reduced

by the amount of such federal deductions for:

(1) income taxes imposed by the city, this state or any other taxing

jurisdiction;

(2) interest on indebtedness incurred or continued to purchase or

carry obligations or securities the income from which is exempt from tax

under this local law; and

(3) ordinary and necessary expenses paid or incurred during the

taxable year for (A) the production or collection of income which is

exempt from tax under this local law, or (B) the management,

conservation or maintenance of property held for the production of such

income, and the amortizable bond premium for the taxable year on any

bond the interest on which is exempt from tax under this local law.

(d) Modifications increasing federal itemized deductions.--The total

amount of deduction from federal adjusted gross income shall be

increased by:

(1) an amount, not exceeding one hundred fifty dollars in the

aggregate, for net premiums paid or incurred by a taxpayer during the

taxable year with respect to any life insurance or endowment policy upon

his life;

(2) interest on indebtedness incurred or continued to purchase or

carry obligations or securities the income from which is subject to tax

under this local law but exempt from federal income tax, to the extent

that such interest is not deductible for federal income tax purposes and

is not subtracted from federal adjusted gross income pursuant to

paragraph six of subdivision (c) of section twelve; and

(3) ordinary and necessary expenses paid or incurred during the

taxable year for (A) the production or collection of income which is

subject to tax under this local law but exempt from federal income tax,

or (B) the management, conservation or maintenance of property held for

the production of such income, and the amortizable bond premium for the

taxable year on any bond the interest on which is subject to tax under

this local law but exempt from federal income tax, to the extent that

such expenses and premiums are not deductible in determining federal

adjusted gross income and are not subtracted from federal adjusted gross

income pursuant to paragraph seven of subdivision (c) of section twelve.

(e) Partners.-- The amounts of modifications under subdivision (c) or

under paragraphs two or three of subdivision (d) required to be made by

a partner with respect to items of deduction of a partnership shall be

determined under section seventeen.