Section 12. Change of residence status during year

(a)  General.  If  an
  individual  changes  his status during his taxable year from resident to
  nonresident, or from nonresident to resident, he shall file a return  as
  a  nonresident  for  the  portion  of  the  year  during  which  he is a
  nonresident if he is subject to the tax imposed by this local law or, if
  not subject to such tax, an information return for the  portion  of  the
  year during which he is a nonresident, subject to such exceptions as the
  state  tax  commission  may  prescribe  by  regulation. Such information
  return shall be due at the same time as the return required by  a  local
  law authorized by article thirty-A of the tax law for the portion of the
  year during which such individual is a resident.
    (b)  City  taxable  wages  and  net  earnings from self-employment for
  portion of year individual is a nonresident. The city taxable wages  and
  net  earnings  from  self-employment  for the portion of the year during
  which the taxpayer is a  nonresident  shall  be  determined,  except  as
  provided  in subsection (c), under this local law as if his taxable year
  for federal income tax purposes  were  limited  to  the  period  of  his
  nonresident status.
    (c)  Special  accruals.  (1)  If  a individual changes his status from
  resident  to  nonresident,  he  shall,  regardless  of  his  method   of
  accounting,  accrue  for  the  portion of the taxable year prior to such
  change of status any items of income, gain, loss or  deduction  accruing
  prior  to  the  change  of  status, if not otherwise properly includible
  (whether or not because of an  election  to  report  on  an  installment
  basis)  or  allowable for city earnings tax purposes for such portion of
  the taxable year or a prior taxable year. The amounts  of  such  accrued

  items  shall  be  determined as if such accrued items were includible or
  allowable for federal self-employment tax purposes.
    (2)  If an individual changes his status from nonresident to resident,
  he shall, regardless of his method of accounting, accrue for the portion
  of the taxable year prior to such change of status any items of  income,
  gain,  loss  or deduction accruing prior to the change of status, if not
  otherwise properly includible (whether or not because of an election  to
  report on an installment basis) or allowable for federal self-employment
  tax  purposes  for  such  portion of the taxable year or a prior taxable
  year. The amounts of such accrued items shall be determined as  if  such
  accrued  items  were includible or allowable for federal self-employment
  tax purposes.
    (3) No item of income, gain, loss or deduction which is accrued  under
  this subsection shall be taken into account in determining city adjusted
  wages earned, or net earnings from self-employment, within the city, for
  any subsequent taxable period.
    (4)   Where   an  individual  changes  his  status  from  resident  to
  nonresident, the accruals under this subsection shall not be required if
  the individual files with the state  tax  commission  a  bond  or  other
  security acceptable to the commission, conditioned upon the inclusion of
  amounts accruable under this subsection in the determination of the city
  income tax surcharge under a local law authorized by article thirty-A of
  the  tax  law  for  one  or  more  subsequent  taxable  years  as if the
  individual had not changed his resident status. In such event,  the  tax
  under this local law shall not apply to such amounts.
    (d)  Prorations.  Where  an  individual  changes his status during his
  taxable year  from  resident  to  nonresident  or  from  nonresident  to
  resident,  the  exclusion  allowable under subsection (b) of section two
  shall be prorated, under regulations of the  state  tax  commission,  to
  reflect  the  portions  of  the  entire  taxable  year  during which the
  individual was a resident and a nonresident.