N.Y. Tax Law § 617-a: Residents; special provisions

§ 617-a. Residents; special provisions. Notwithstanding any other

provisions of this article, the New York adjusted gross income and the

New York taxable income of a resident individual or partner of a

partnership doing an insurance business as a member of the New York

insurance exchange described in section six thousand two hundred one of

the insurance law, shall not include any item of income, gain, loss or

deduction of such business, which is the individual's distributive or

pro rata share for federal income tax purposes or which the individual

is required to take into account separately for federal income tax

purposes. Provided however, such individual's New York adjusted gross

income shall include his distributive or pro rata share of the allocated

entire net income as determined by such business under sections fifteen

hundred three and fifteen hundred four of this chapter. In the event

such allocated entire net income is a loss, there shall not be

subtracted from federal adjusted gross income in computing New York

adjusted gross income such individual's distributive share of such loss.