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 Laws of New York (Last Updated: November 21, 2014)
  TAX Tax
 Article 22. PERSONAL INCOME TAX
 Part III. NONRESIDENTS AND PART-YEAR RESIDENTS * 631. New York source income of a nonresident individual. * 632. Nonresident partners and electing shareholders of S corporations. * 633. New York source income of a nonresident estate or trust. * 634. Share of a nonresident beneficiary in income from New York sources. * 635. Credit to trust beneficiary receiving accumulation distribution. * 636. New York minimum taxable income of nonresidents or part-year residents. * 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. * 638. New York source income of a part-year resident. 639. Accruals upon change of residence. * NB Applicable to taxable years beginning after 1987. * PART III-NONRESIDENTS * 631. New York taxable income of a nonresident individual * 632. New York adjusted gross income of a nonresident individual. * 633. New York deduction of a nonresident individual * 634. New York standard deduction of a nonresident individual. * 635. New York itemized deduction of a nonresident individual. * 636. New York personal exemptions of a nonresident individual. * 637. Nonresident partners and electing shareholders of S corporations. * 638*. New York taxable income of a nonresident estate or trust. * 641. New York minimum taxable income of nonresidents. * 642. Computation of separate tax on the ordinary income portion of lump sum distributions received by nonresident individuals, estates and trusts. * (Repealed for taxable years beginning after 1987)

  Section 632. Nonresident partners and electing shareholders of S corporations  

Latest version. 
  • (a) Portion derived from New York sources.    (1) In determining New York source income of a nonresident partner  of
  any  partnership,  there shall be included only the portion derived from
  or connected with New York sources of such partner's distributive  share
  of  items  of partnership income, gain, loss and deduction entering into
  his federal adjusted gross income, as such portion shall  be  determined
  under  regulations  of the tax commission consistent with the applicable
  rules of section six hundred thirty-one.
    ** (2)  In  determining  New  York  source  income  of  a  nonresident
  shareholder  of  an  S  corporation  where  the election provided for in
  subsection (a) of section six  hundred  sixty  of  this  article  is  in
  effect,  there  shall  be  included  only  the  portion  derived from or
  connected with New York sources of such shareholder's pro rata share  of
  items  of  S  corporation  income,  loss and deduction entering into his
  federal  adjusted  gross  income,  increased  by  reductions  for  taxes
  described  in  paragraphs  two  and  three  of subsection (f) of section
  thirteen hundred sixty-six of the internal revenue code, as such portion
  shall be determined under regulations  of  the  commissioner  consistent
  with  the  applicable  methods  and  rules  for allocation under article
  nine-A or thirty-two of this chapter.
  ** NB Applies to taxable years beginning after December 31, 1996
    (b) Special rules as to New York sources. In determining  the  sources
  of  a  nonresident  partner's  income,  no  effect  shall  be given to a
  provision in the partnership agreement which---
    (1) characterizes payments to the partner as being for services or for
  the use of capital, or
    (2) allocates to the partner, as income or gain from  sources  outside
  New  York, a greater proportion of his distributive share of partnership
  income or gain than the ratio of partnership income or gain from sources
  outside New York to partnership income or gain from all sources,  except
  as authorized in subsection (d), or
    (3)  allocates  to  the  partner a greater proportion of a partnership
  item of loss or deduction connected  with  New  York  sources  than  his
  proportionate  share,  for  federal  income tax purposes, of partnership
  loss or deduction generally, except as authorized in subsection (d).
    (c)  Partner's  and  shareholder's  modifications.  Any   modification
  described  in subsection (b) or (c) of section six hundred twelve, which
  relates to an item of partnership or S corporation income, gain, loss or
  deduction, shall be made in accordance with the  partner's  distributive
  share  or  the  shareholder's  pro  rata  share  for  federal income tax
  purposes of the item to which the modification relates, but  limited  to
  the  portion  of  such  item  derived  from  or  connected with New York
  sources.
    (d)  Alternate  methods.  The  tax  commission  may,  on  application,
  authorize  the  use  of  such other methods of determining a nonresident
  partner's portion of partnership items derived from  or  connected  with
  New  York  sources,  and  the  modifications  related thereto, as may be
  appropriate and equitable, on  such  terms  and  conditions  as  it  may
  require.
    (e)  Application  of  rules  for resident partners and shareholders to
  nonresident partners and shareholders.
    (1) A  nonresident  partner's  distributive  share  or  S  corporation
  shareholder's  pro  rata  share  of  items  shall  be  determined  under
  subsection (a) of section six hundred seventeen.
    (2)  The  character  of  partnership  or  corporation  items   for   a
  nonresident  partner  or  S  corporation shareholder shall be determined
  under subsection (b) of section six hundred seventeen.

    (3) The effect of a  special  provision  in  a  partnership  agreement
  (other  than  a provision referred to in subsection (b) of this section)
  having the principal purpose of avoidance or evasion of tax  under  this
  article  shall be determined under subsection (c) of section six hundred
  seventeen.
  *  NB  Effective  as  of  January  1,  1988 and applies to taxable years
  beginning after 1987.