Section 615. New York itemized deduction of a resident individual

(a)
  General.  If  federal  taxable  income  of  a  resident  individual   is
  determined  by  itemizing  deductions  from  his  federal adjusted gross
  income, he may elect to deduct his New York itemized deduction  in  lieu
  of his New York standard deduction. The New York itemized deduction of a
  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 subsection (f) of this section.
    (b) Husband and wife.
    (1)  A  husband  and  wife,  both of whom are required to file returns
  under this article, shall be allowed New York itemized  deductions  only
  if both elect to take New York itemized deductions.
    (2)  The  total  of  the New York itemized deductions of a husband and
  wife whose federal taxable income is determined on a joint  return,  but
  whose New York 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  state  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 article; 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 article, 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 article, 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.
    * (5)  real  property  taxes imposed by this state or any other taxing
  jurisdiction on renters pursuant to section nine hundred twenty-six-a of
  the real property tax law.
    * NB (Effective pending ruling by Commissioner of Internal Revenue)
    (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  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 subsection (s) of section six hundred
  twelve.
    (8) The amount of  any  federal  deduction  for  taxes  imposed  under
  article twenty-three of this chapter.

    (d)  Modifications  increasing  federal itemized deductions. The total
  amount of  deductions  from  federal  adjusted  gross  income  shall  be
  increased by:
    (1)  an  amount,  not  exceeding  one hundred and fifty dollars in the
  aggregate, for net premiums paid or incurred by a  taxpayer  during  the
  taxable year with respect to any life insurance or endowment policy upon
  his  life;  provided,  however,  for taxable years beginning on or after
  January first, nineteen  hundred  seventy-one,  such  amount  shall  not
  exceed  one  hundred  dollars  in  the  aggregate; and for taxable years
  beginning on or after January first, nineteen hundred seventy-two,  such
  amount  shall not exceed fifty dollars in the aggregate; and for taxable
  years  beginning  on  or   after   January   first,   nineteen   hundred
  seventy-three, no such increase in the amount of deductions from federal
  adjusted gross income shall be allowed;
    (2)  interest  on  indebtedness  incurred  or continued to purchase or
  carry obligations or securities the interest on which is subject to  tax
  under  this  article  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 (9) of  subsection  (c)  of  section  six  hundred
  twelve; 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 article 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 article 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  (10)  of  subsection (c) of section six hundred
  twelve.
    (4) allowable college tuition expenses, as defined in paragraph two of
  subsection (t) of section six hundred six of this article, 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 this article.
    (e)  Modifications 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 subsection (c) or under
  paragraph  (2) or (3) of subsection (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  six
  hundred seventeen.
    (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 subsection (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 subsection (s) of section six hundred twelve.
    (f)  The  New  York  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 subsection.
    (1)  An  amount  equal  to  the  New York itemized deduction otherwise
  allowable  under  subsection  (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  New  York  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 New York 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 New
  York adjusted gross income over one hundred fifty thousand  dollars  and
  the denominator of which is fifty thousand dollars.
    (2)  An  amount  equal  to  the  New  York  itemized  deduction  of an
  individual otherwise allowable under subsection  (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  New York 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 New York adjusted gross income
  is  over  one  million dollars, an amount equal to the New York itemized
  deduction of an individual otherwise allowable under subsection  (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.