N.Y. General City Model 772/66 § 27: Net income defined; computation

§ 27. Net income defined; computation. The term "net income" means the

gross income of a taxpayer less the deductions allowed by this subpart.

The net income shall be computed in accordance with the method of

accounting regularly employed in keeping the books of such taxpayer; but

if no such method of accounting has been so employed, or if the method

employed does not clearly reflect the income, the computation shall be

made upon such basis and in such manner as in the opinion of the

director of finance does clearly reflect the income. In determining net

income, war losses, taxation of property recovered, and basis of

property shall be treated in substantially the same manner as such

losses, recoveries and basis are treated under the applicable provisions

of section thirteen hundred thirty-one of the internal revenue code.