§ 109. Unincorporated business exemptions. In computing unincorporated
business taxable income, there shall be allowed (without allocation
under section one hundred seven):

(1) an unincorporated business exemption of five thousand dollars,
prorated for taxable years of less than twelve months under regulations
of the director of finance;

(2) if a partner in an unincorporated business is taxable under this
title or under any local law imposed pursuant to section one of the act
authorizing the adoption of this title, an exemption for the amount of
the partner's proportionate interest in the excess of the unincorporated
business gross income over the deductions allowed under sections one
hundred six and one hundred eight, but this exemption shall be limited
to the amount which is included in the partner's unincorporated business
taxable income allocable to the city, or included in a corporate
partner's net income allocable to the city.