N.Y. General City Law art. 2-D, § 17: Resident partners

§ 17. Resident partners.--(a) Partner's modifications.--In determining

city adjusted gross income and city taxable income of a resident

partner, any modification described in subdivisions (b), (c) or (d) of

section twelve, subdivision (c) of section fifteen or paragraphs two or

three of subdivision (d) of such section, which relates to an item of

partnership income, gain, loss or deduction shall be made in accordance

with the partner's distributive share, for federal income tax purposes,

of the item to which the modification relates. Where a partner's

distributive share of any such item is not required to be taken into

account separately for federal income tax purposes, the partner's

distributive share of such item shall be determined in accordance with

his distributive share, for federal income tax purposes, of partnership

taxable income or loss generally.

(b) Character of items.--Each item of partnership income, gain, loss,

or deduction shall have the same character for a partner under this

local law as for federal income tax purposes. Where an item is not

characterized for federal income tax purposes, it shall have the same

character for a partner as if realized directly from the source from

which realized by the partnership or incurred in the same manner as

incurred by the partnership.

(c) City tax avoidance or evasion.--Where a partner's distributive

share of an item of partnership income, gain, loss or deduction is

determined for federal income tax purposes by special provision in the

partnership agreement with respect to such item, and where the principal

purpose of such provision is the avoidance or evasion of tax under this

local law, the partner's distributive share of such item, and any

modification required with respect thereto, shall be determined as if

the partnership agreement made no special provision with respect to such

item.