N.Y. Tax Law § 637: Computation of separate tax on the ordinary income portion of lump sum distributions received by nonresident or part-year resident indivi...

§ 637. Computation of separate tax on the ordinary income portion of

lump sum distributions received by nonresident or part-year resident

individuals, estates and trusts. (a) General. The tax imposed under

section six hundred three for any taxable year, with respect to the

ordinary income portion of a lump sum distribution received by a

nonresident or part-year resident individual, estate or trust shall be

applicable to the ordinary income portion of a lump sum distribution

wholly or partly derived from or connected with New York sources, and

the amount of such tax shall be computed in the same manner as that set

forth in section six hundred twenty-four, except that if the lump sum

distribution was partly derived from or connected with New York sources,

the total taxable amount and the ordinary income portion of the lump sum

distribution referred to in such section shall be determined by

apportionment and allocation, pursuant to regulations promulgated by the

state tax commission.

(b) Special rule for part-year residents. In the case of a part-year

resident, the ordinary income portion of a lump sum distribution wholly

or partly derived from or connected with New York sources shall be the

sum of:

(1) The ordinary income portion of a lump sum distribution for the

period of residence, computed as if the taxable year for federal income

tax purposes were limited to the period of residence.

(2) The ordinary income portion of a lump sum distribution for the

period of nonresidence, determined in accordance with subsection (a) of

this section, computed as if the taxable year for federal income tax

purposes were limited to the period of nonresidence.