Section 632*2. New York adjusted gross income of a nonresident individual

(a)  General.  The  New  York  adjusted  gross  income  of a nonresident
  individual shall be the sum of the following:
    (1) The net amount of  items  of  income,  gain,  loss  and  deduction
  entering  into his federal adjusted gross income, as defined in the laws
  of the United States for the taxable year,  derived  from  or  connected
  with New York sources, including:
    (A)  his  distributive  share  of  partnership  income, gain, loss and
  deduction, determined under section six hundred thirty-seven, and
    (B) where the election provided for in subsection (a) of  section  six
  hundred  sixty is in effect, his pro rata share of S corporation income,
  loss and deduction, 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,  determined  under  section  six
  hundred thirty-seven, and
    (C)  his  share  of  estate or trust income, gain, loss and deduction,
  determined under section six hundred thirty-nine; and
    (2) The portion of the modifications described in subsections (b)  and
  (c)  of  section  six hundred twelve which relate to income derived from
  New York sources (including any modifications attributable to him  as  a
  partner  or  shareholder of an S corporation where the election provided
  for in subsection (a) of section six hundred sixty is in effect).
    (3) The modification described in paragraph fourteen of subsection (b)
  of section six hundred twelve.
    (b) Income and deductions from New York sources.
    (1) Items  of  income,  gain,  loss  and  deduction  derived  from  or
  connected with New York sources shall be those items attributable to:
    (A)  the  ownership  of  any  interest  in  real  or tangible personal
  property in this state; or
    (B) a business, trade, profession or occupation  carried  on  in  this
  state; or
    (C)  in  the  case  of  a  shareholder  of  an S corporation where the
  election provided for in subsection (a) of section six hundred sixty  is
  in  effect,  the  ownership of shares issued by such corporation, to the
  extent determined under section six hundred thirty-seven.
    (2) Income from intangible  personal  property,  including  annuities,
  dividends,  interest,  and  gains  from  the  disposition  of intangible
  personal property, shall constitute income derived from New York sources
  only to the extent that such income  is  from  property  employed  in  a
  business, trade, profession, or occupation carried on in this state.
    (2-a)   Income   directly   or   indirectly  derived  by  an  athlete,
  entertainer,  or  performing  artist  from  closed-circuit   and   cable
  television  transmissions  of an event (other than events occurring on a
  regularly scheduled basis) taking place within the state as a result  of
  the  rendition  of  services  by such athlete, entertainer or performing
  artist shall constitute income derived from New York sources only to the
  extent that such transmissions were received  or  exhibited  within  the
  state.
    *  (3)  Deductions  with  respect  to capital losses and net operating
  losses shall be based solely on income, gain, loss and deduction derived
  from or connected with New York sources, under regulations  of  the  tax

  commission,  but otherwise shall be determined in the same manner as the
  corresponding federal deductions.
 
  * NB Applies to taxable years beginning in 1987
 
  (5)  In the case of a nonresident individual or partner of a partnership
  doing an insurance business as  a  member  of  the  New  York  insurance
  exchange  described  in  section  six  thousand  two  hundred one of the
  insurance law, any item of income,  gain,  loss  or  deduction  of  such
  business  which  is  the individual's distributive or pro rata share for
  federal income tax purposes or which the individual is required to  take
  into  account  separately  for  federal  income  tax purposes, shall not
  constitute income,  gain,  loss  or  deduction  derived  from  New  York
  sources.
    (c) Income and deductions partly from New York sources. If a business,
  trade,  profession  or occupation is carried on partly within and partly
  without  this  state,  as  determined  under  regulations  of  the   tax
  commission,  the  items of income, gain, loss and deduction derived from
  or connected with New York sources shall be determined by  apportionment
  and allocation under such regulations.
    (d)  Purchase and sale for own account.--- A nonresident, other than a
  dealer holding property primarily for sale to customers in the  ordinary
  course  of  his  trade  or  business,  shall not be deemed to carry on a
  business, trade, profession or occupation in this state solely by reason
  of the purchase and sale of property or the purchase, sale or writing of
  stock option contracts, or both, for his own account.
    (e) Military pay. Compensation paid by the United  States  for  active
  service  in  the  armed  forces  of  the  United States, performed by an
  individual not domiciled in this  state,  shall  not  constitute  income
  derived from New York sources.
    (f)  Husband  and  wife.  If  husband and wife determine their federal
  income tax on a joint return but are required  to  determine  their  New
  York  income  taxes  separately,  they  shall  determine  their New York
  adjusted gross incomes separately as if  their  federal  adjusted  gross
  incomes had been determined separately.
 
  ** NB Applies to taxable years beginning prior to 1988