Section 639. Accruals upon change of residence

(a) If an individual changes
  status  from  resident to nonresident he shall, regardless of his method
  of accounting, accrue to the period of residence any  items  of  income,
  gain,  loss,  deduction,  items  of  tax  preference  or ordinary income
  portion of a lump sum distribution  accruing  prior  to  the  change  of
  status,  with  the  applicable  modifications and adjustments to federal
  adjusted gross income, itemized deductions and items of  tax  preference
  under  sections  six hundred twelve, six hundred fifteen and six hundred
  twenty-two, if not otherwise properly includible or  allowable  for  New
  York  income  tax purposes for such period or a prior taxable year under
  his method of accounting.
    (b) If an individual changes status from nonresident  to  resident  he
  shall,  regardless  of his method of accounting, accrue to the period of
  nonresidence any items of income, gain, loss or deduction, items of  tax
  preference  or  ordinary  income  portion  of  a  lump  sum distribution
  accruing  prior  to  the  change  of   status,   with   the   applicable
  modifications and adjustments to federal adjusted gross income, itemized
  deductions  and  items  of  tax  preference  under  sections six hundred
  twelve, six hundred fifteen and six hundred twenty-two, other than items
  derived from or connected  with  New  York  sources,  if  not  otherwise
  properly  includible  or  allowable for New York income tax purposes for
  such period or for a prior taxable year under his method of accounting.
    (c) No item of income, gain, loss, deduction, item of tax  preference,
  ordinary  income  portion  of a lump sum distribution or modification or
  adjustment which is accrued under  this  section  shall  be  taken  into
  account  in  determining  the  tax under this article for any subsequent
  taxable year.
    (d) The accruals under this section  shall  not  be  required  if  the
  individual  files  with  the  commissioner  a  bond  or  other  security
  acceptable to the commissioner, on condition that the amounts  accruable
  under  this  section are taken into account in determining the tax under
  this article for  one  or  more  subsequent  taxable  years  as  if  the
  individual had not changed his resident status.
    (e)  The  foregoing  provisions  of  this  section  shall  apply if an
  individual changes his or her status from a resident to  nonresident  or
  from  a  nonresident  to  resident  during  a  taxable  year,  or at the
  beginning of a taxable year, as a result of a change of domicile or as a
  result of becoming a resident or nonresident  based  on  the  definition
  contained in subsection (b) of section six hundred five of this article.
    (f)  Except  as  hereinafter  provided,  where  an individual who is a
  member of a partnership or a shareholder of  an  S  corporation  changes
  status  from  resident  to nonresident, or from nonresident to resident,
  the portion of the distributive or pro rata share of  income,  gain  and
  loss  (less  deductions  attributable  thereto)  from a partnership or S
  corporation shall be allocated to the resident and  nonresident  periods
  of  the  partner  or shareholder on a proportionate basis throughout the
  taxable year of the partnership or S corporation.  In  such  event,  the
  portion of the distributive or pro rata share allocated to the period of
  residency  shall  be determined based on the number of days of residency
  within the reporting period of the partnership or S corporation over the
  total number of days in the reporting period of  the  partnership  or  S
  corporation.  Provided,  however,  that the commissioner may require, or
  the individual may elect, to accrue to the period of residence, and  the
  period  of  nonresidence,  the  portion  of the distributive or pro rata
  share of partnership or  S  corporation  income,  gain  and  loss  (less
  deductions   attributable  thereto)  accruing  during  the  individual's
  respective resident and nonresident periods in a  manner  that  reflects

  the  date of accrual of said income, gain and loss by the partnership or
  S corporation.
    (g)  Except  as  hereinafter  provided,  where  an  individual  who is
  beneficiary of an estate  or  trust  changes  status  from  resident  to
  nonresident,  or from nonresident to resident, the portion of any estate
  or trust income credited,  distributable,  payable  or  required  to  be
  distributed  to  such beneficiary shall be allocated to the resident and
  nonresident  periods  of  the  beneficiary  on  a  proportionate   basis
  throughout  the  taxable year of the estate or trust. In such event, the
  portion of such estate or  trust  income  allocated  to  the  period  of
  residency  shall  be determined based on the number of days of residency
  within the reporting period of the estate or trust.  Provided,  however,
  that  the  commissioner  may  require,  or the beneficiary may elect, to
  accrue to the period of residence, and the period of  nonresidence,  the
  portion of such estate or trust income accruing during the beneficiary's
  respective  resident  and  nonresident periods in a manner that reflects
  the date of accrual of said estate or trust  income  by  the  estate  or
  trust.
    (h) If a trust changes its status from resident to nonresident or from
  nonresident  to  resident, the provisions of subsections (a) through (f)
  of this section shall apply except that the term "individual"  shall  be
  read  as  "trust"  and  reference  to  "modifications"  shall mean those
  modifications described in section six hundred eighteen.