N.Y. Tax Law § 860: Definitions

§ 860. Definitions. For purposes of this article:

(a) Eligible partnership. Eligible partnership means any partnership

as provided for in section 7701(a)(2) of the Internal Revenue Code that

has a filing requirement under paragraph one of subsection (c) of

section six hundred fifty-eight of this chapter other than a publicly

traded partnership as defined in section 7704 of the Internal Revenue

Code. An eligible partnership includes any entity, including a limited

liability company, treated as a partnership for federal income tax

purposes that otherwise meets the requirements of this subdivision.

(b) Eligible S corporation. Eligible S corporation means any New York

S corporation as defined pursuant to subdivision one-A of section two

hundred eight of this chapter that is subject to tax under section two

hundred nine of this chapter. An eligible S corporation includes any

entity, including a limited liability company, treated as an S

corporation for federal income tax purposes that otherwise meets the

requirements of this subdivision.

(c) Electing partnership. Electing partnership means any eligible

partnership that made a valid, timely election pursuant to section eight

hundred sixty-one of this article.

(d) Electing S corporation. Electing S corporation means any eligible

S corporation that made a valid, timely election pursuant to section

eight hundred sixty-one of this article that is either an electing

resident S corporation or electing standard S corporation.

(e) Taxpayer. Taxpayer means any electing partnership or electing S

corporation.

(f) Pass-through entity tax. Pass-through entity tax means the total

tax imposed by this article on electing partnerships and electing S

corporations.

(g) Direct share of pass-through entity tax. Direct share of

pass-through entity tax means the portion of pass-through entity tax

calculated on pass-through entity taxable income that is also included

in the taxable income of a partner or member of the electing partnership

or the taxable income of a shareholder of the electing S corporation

under article twenty-two of this chapter.

(h) Pass-through entity taxable income. Pass-through entity taxable

income means: (1) In the case of an electing partnership, the sum of

(i) all items of income, gain, loss, or deduction derived from or

connected with New York sources to the extent they are included in the

taxable income of a nonresident partner subject to tax under article

twenty-two, under paragraph one of subsection (a) of section six hundred

thirty-two of this chapter; (ii) all items of income, gain, loss, or

deduction to the extent they are included in the taxable income of a

resident partner subject to tax under article twenty-two of this

chapter; and (iii) all pass-through entity taxes including taxes paid

under this article to New York, taxes paid under article twenty-four-B

of this chapter to the city of New York, and taxes paid to other

jurisdictions that are substantially similar to the taxes paid under

this article, to the extent that, for federal income tax purposes, the

taxes are paid and deducted in the taxable year, and are included in the

taxable income of the partners subject to tax under article twenty-two

of this chapter for the taxable year.

(2) In the case of an electing standard S corporation, the sum of (i)

all items of income, gain, loss, or deduction derived from or connected

with New York sources to the extent they would be included under

paragraph two of subsection (a) of section six hundred thirty-two of

this chapter in the taxable income of a shareholder subject to tax under

article twenty-two of this chapter; and (ii) all pass-through entity

taxes including taxes paid under this article to New York, taxes paid

under article twenty-four-B of this chapter to the city of New York, and

taxes paid to other jurisdictions that are substantially similar to the

taxes paid under this article, to the extent that, for federal income

tax purposes, the taxes are paid and deducted in the taxable year, and

are included in the taxable income of the shareholders subject to tax

under article twenty-two of this chapter for the taxable year.

(3) In the case of an electing resident S corporation, the sum of (i)

all items of income, gain, loss, or deduction to the extent they are

included in the taxable income of a shareholder subject to tax under

article twenty-two of this chapter; and (ii) all pass-through entity

taxes including taxes paid under this article to New York, taxes paid

under article twenty-four-B of this chapter to the city of New York, and

taxes paid to other jurisdictions that are substantially similar to

taxes paid under this article, to the extent that, for federal income

tax purposes, the taxes are paid and deducted in the taxable year, and

are included in the taxable income of the shareholders subject to tax

under article twenty-two of this chapter for the taxable year.

(i) Taxable year. An electing partnership's or electing S

corporation's taxable year pursuant to this article shall be the same as

the electing partnership's or electing S corporation's taxable year for

federal income tax purposes.

(j) Electing resident S corporation. An electing resident S

corporation is an electing S corporation that certifies at the time of

its election that all of its shareholders are residents of New York for

purposes of article twenty-two of this chapter.

(k) Electing standard S corporation. An electing standard S

corporation is an electing S corporation that is not an electing

resident S corporation.