Section 11-1715. City itemized deduction of a city resident individual

(a)
  General. If federal taxable income of  a  city  resident  individual  is
  determined  by  itemizing  deductions  from  his  federal adjusted gross
  income, such resident individual may elect to deduct his  city  itemized
  deduction in lieu of his city standard deduction.
    The  city  itemized  deduction of a city resident individual means the
  total amount of his deductions from federal adjusted gross income, other
  than federal deductions for personal exemptions, as provided in the laws
  of the United States  for  the  taxable  year,  with  the  modifications
  specified  in this section, except as provided for under subdivision (f)
  of this section.
    (b) Husband and wife.
    (1) A husband and wife, both of whom  are  required  to  file  returns
  under  this  chapter,  shall be allowed city itemized deductions only if
  both elect to take city itemized deductions.
    (2) The total of the city itemized deductions of a  husband  and  wife
  whose  federal taxable income is determined on a joint return, but whose
  city taxable incomes are required to be determined separately, shall  be
  divided  between  them  as  if  their  federal  taxable incomes had been
  determined separately.
    (c) Modifications reducing  federal  itemized  deductions.  The  total
  amount of deductions from federal adjusted gross income shall be reduced
  by the amount of such federal deductions for:
    (1)   income   taxes   imposed  by  this  city  or  any  other  taxing
  jurisdiction, except  city  earnings  taxes  on  nonresidents  that  are
  imposed  upon  and  paid  by taxpayers for taxable years beginning after
  December thirty-first,  nineteen  hundred  seventy  and  before  January
  first,  two thousand, pursuant to the authority of section twenty-five-m
  of the general city law, to the extent  that  the  amount  of  such  tax
  exceeds  the tax computed as if the rates were one-fourth of one percent
  of wages subject to tax and three-eighths of one percent of net earnings
  from self-employment subject to tax;
    (2) interest on indebtedness incurred  or  continued  to  purchase  or
  carry obligations or securities the interest on which is exempt from tax
  under this chapter; and
    (3)  ordinary  and  necessary  expenses  paid  or  incurred during the
  taxable year for: (i) the production or collection of  income  which  is
  exempt from tax under this chapter, or (ii) the management, conservation
  or  maintenance  of property held for the production of such income, and
  the amortizable bond premium for  the  taxable  year  on  any  bond  the
  interest  on  which is exempt from tax under this chapter, to the extent
  that such expenses and premiums are deductible  in  determining  federal
  taxable income.
    (4) premiums paid for long-term care insurance to the extent that such
  premiums are deductible in determining federal taxable income.
    (6) in the case of a shareholder of an S corporation:
    (A)  where  the election provided for in subsection (a) of section six
  hundred sixty of the tax law has not been made, S corporation  items  of
  deduction included in federal itemized deductions, and
    (B)  in the case of a New York S termination year, the portion of such
  items assigned to the period beginning on the day the election ceases to
  be effective, as determined under subdivision (s) of section 11-1712.
    (d) Modifications increasing federal itemized  deductions.  The  total
  amount  of  deductions  from  federal  adjusted  gross  income  shall be
  increased by:
    (1) (Reserved.)
    (2) interest on indebtedness incurred  or  continued  to  purchase  or
  carry  obligations or securities the interest on which is subject to tax

  under this chapter but exempt from federal income  tax,  to  the  extent
  that  such interest on indebtedness is not deductible for federal income
  tax purposes and is not subtracted from federal  adjusted  gross  income
  pursuant to paragraph nine of subdivision (c) of section 11-1712; and
    (3)  ordinary  and  necessary  expenses  paid  or  incurred during the
  taxable year for: (i) the production or collection of  income  which  is
  subject to tax under this chapter but exempt from federal income tax, or
  (ii)  the  management,  conservation or maintenance of property held for
  the production of such income, and the amortizable bond premium for  the
  taxable  year  on any bond the interest on which is subject to tax under
  this chapter but exempt from federal income tax, to the extent that such
  expenses and premiums are not deductible in determining federal adjusted
  gross income and are not subtracted from federal adjusted  gross  income
  pursuant to paragraph ten of subdivision (c) of section 11-1712.
    (4) allowable college tuition expenses, as defined in paragraph two of
  subsection  (t) of section six hundred six of the tax law, multiplied by
  the  applicable  percentage.  Such  applicable   percentage   shall   be
  twenty-five  percent  for  taxable  years beginning in two thousand one,
  fifty  percent  for  taxable  years  beginning  in  two  thousand   two,
  seventy-five  percent  for taxable years beginning in two thousand three
  and one hundred percent for taxable years beginning after  two  thousand
  three.  Provided,  however,  no  deduction  shall  be allowed under this
  paragraph to a taxpayer who claims the credit provided under  subsection
  (t) of section six hundred six of the tax law.
    (e)  Modification  of partners and shareholders of S corporations. (1)
  Partners and shareholders of S corporations which are  not  New  York  C
  corporations.  The  amounts  of  modifications  under subdivision (c) or
  under paragraph two or three of subdivision (d) required to be made by a
  partner or by a shareholder  of  an  S  corporation  (other  than  an  S
  corporation which is a New York C corporation), with respect to items of
  deduction  of  a  partnership or S corporation shall be determined under
  section 11-1717.
    (2) Shareholders of S corporations which are New York C  corporations.
  In  the  case of a shareholder of an S corporation which is a New York C
  corporation, the modifications under this section which  relate  to  the
  corporation's  items  of  deduction  shall  not  apply,  except  for the
  modification provided under paragraph six of subdivision (c).
    (3) New York S  termination  year.  In  the  case  of  a  New  York  S
  termination  year,  the amounts of the modifications required under this
  section which relate to the S corporation's items of deduction shall  be
  adjusted  in the same manner that the S corporation's items are adjusted
  under subdivision (s) of section 11-1712.
    (f) The city itemized deduction otherwise allowable under this section
  shall be reduced by the sum of the amounts determined  under  paragraphs
  one, two and three of this subdivision.
    (1) An amount equal to the city itemized deduction otherwise allowable
  under  subdivision (a) of this section, multiplied by a percentage, such
  percentage to be determined by multiplying, for taxable years  beginning
  in  nineteen  hundred  eighty-eight,  ten percent, and for taxable years
  beginning after nineteen hundred eighty-eight, twenty-five percent, by a
  fraction,
    (A) in the case of  an  unmarried  individual  or  married  individual
  filing  a separate return, the numerator of which is the lesser of fifty
  thousand dollars or the excess of such individual's city adjusted  gross
  income over one hundred thousand dollars and the denominator of which is
  fifty thousand dollars;
    (B)  in  the  case  of a married individual filing a joint return or a
  surviving spouse, the numerator of which is the lesser of fifty thousand

  dollars or the excess of such individual's city  adjusted  gross  income
  over  two hundred thousand dollars and the denominator of which is fifty
  thousand dollars;
    (C)  in the case of a head of household, the numerator of which is the
  lesser of fifty thousand dollars or the excess of such individual's city
  adjusted gross income over one hundred fifty thousand  dollars  and  the
  denominator of which is fifty thousand dollars.
    (2)  An  amount  equal to the city itemized deduction of an individual
  otherwise allowable under subdivision (a) of this section, multiplied by
  a percentage, such percentage  to  be  determined  by  multiplying,  for
  taxable  years  beginning in nineteen hundred eighty-eight, ten percent,
  and for taxable years beginning  after  nineteen  hundred  eighty-eight,
  twenty-five percent, by a fraction, the numerator of which is the lesser
  of  fifty  thousand  dollars  or  the  excess  of such individual's city
  adjusted gross income over four hundred  seventy-five  thousand  dollars
  and the denominator of which is fifty thousand dollars.
    (3)  With respect to an individual whose city adjusted gross income is
  over one million dollars, an amount equal to the city itemized deduction
  of an individual otherwise  allowable  under  subdivision  (a)  of  this
  section,  except  the  portion  of  the  deduction  attributable  to any
  charitable contribution allowed under section one hundred seventy of the
  internal revenue code, multiplied by fifty percent,  for  taxable  years
  beginning after two thousand eight.