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This entry was published on 2022-04-29
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SECTION 860
Definitions
Tax (TAX) CHAPTER 60, ARTICLE 24-A
§ 860. Definitions. For purposes of this article:

(a) Eligible partnership. Eligible partnership means any partnership
as provided for in section 7701(a)(2) of the Internal Revenue Code that
has a filing requirement under paragraph one of subsection (c) of
section six hundred fifty-eight of this chapter other than a publicly
traded partnership as defined in section 7704 of the Internal Revenue
Code. An eligible partnership includes any entity, including a limited
liability company, treated as a partnership for federal income tax
purposes that otherwise meets the requirements of this subdivision.

(b) Eligible S corporation. Eligible S corporation means any New York
S corporation as defined pursuant to subdivision one-A of section two
hundred eight of this chapter that is subject to tax under section two
hundred nine of this chapter. An eligible S corporation includes any
entity, including a limited liability company, treated as an S
corporation for federal income tax purposes that otherwise meets the
requirements of this subdivision.

(c) Electing partnership. Electing partnership means any eligible
partnership that made a valid, timely election pursuant to section eight
hundred sixty-one of this article.

(d) Electing S corporation. Electing S corporation means any eligible
S corporation that made a valid, timely election pursuant to section
eight hundred sixty-one of this article that is either an electing
resident S corporation or electing standard S corporation.

(e) Taxpayer. Taxpayer means any electing partnership or electing S
corporation.

(f) Pass-through entity tax. Pass-through entity tax means the total
tax imposed by this article on electing partnerships and electing S
corporations.

(g) Direct share of pass-through entity tax. Direct share of
pass-through entity tax means the portion of pass-through entity tax
calculated on pass-through entity taxable income that is also included
in the taxable income of a partner or member of the electing partnership
or the taxable income of a shareholder of the electing S corporation
under article twenty-two of this chapter.

(h) Pass-through entity taxable income. Pass-through entity taxable
income means: (1) In the case of an electing partnership, the sum of (i)
all items of income, gain, loss, or deduction derived from or connected
with New York sources to the extent they are included in the taxable
income of a nonresident partner subject to tax under article twenty-two
under paragraph one of subsection (a) of section six hundred thirty-two
of this chapter; and (ii) all items of income, gain, loss, or deduction
to the extent they are included in the taxable income of a resident
partner subject to tax under article twenty-two of this chapter.

(2) In the case of an electing standard S corporation, the sum of all
items of income, gain, loss, or deduction derived from or connected with
New York sources to the extent they would be included under paragraph
two of subsection (a) of section six hundred thirty-two of this chapter
in the taxable income of a shareholder subject to tax under article
twenty-two of this chapter.

(3) In the case of an electing resident S corporation, the sum of all
items of income, gain, loss, or deduction to the extent they are
included in the taxable income of a shareholder subject to tax under
article twenty-two of this chapter.

(i) Taxable year. An electing partnership's or electing S
corporation's taxable year pursuant to this article shall be the same as
the electing partnership's or electing S corporation's taxable year for
federal income tax purposes.

(j) Electing resident S corporation. An electing resident S
corporation is an electing S corporation that certifies at the time of
its election that all of its shareholders are residents of New York for
purposes of article twenty-two of this chapter.

(k) Electing standard S corporation. An electing standard S
corporation is an electing S corporation that is not an electing
resident S corporation.