§ 11-1705 General provisions and definitions.
AC § 11-1705
(a)Accounting periods and methods.
(1)Accounting periods. A taxpayer's taxable year under this chapter shall be the same as his taxable year for federal income tax purposes.
(2)Change of accounting periods. If a taxpayer's taxable year is changed for federal income tax purposes, his taxable year for purposes of this chapter shall be similarly changed. If a taxable year of less than twelve months results from a change of a taxable year, the city standard deduction and the city exemptions shall be prorated under regulations of the tax commission.
(3)Accounting methods. A taxpayer's method of accounting under this chapter shall be the same as his method of accounting for federal income tax purposes. In the absence of any method of accounting for federal income tax purposes, city taxable income shall be computed under such method as in the opinion of the tax commission clearly reflects income.
(4)Change of accounting methods. (A) If a taxpayer's method of accounting is changed for federal income tax purposes, his method of accounting for purposes of this chapter shall be similarly changed. (B) If a taxpayer's method of accounting is changed, other than from an accrual to an installment method, any additional tax which results from adjustments determined to be necessary solely by reason of the change shall not be greater than if such adjustments were ratably allocated and included for the taxable year of the change and the preceding taxable years, not in excess of two, during which the taxpayer used the method of accounting from which the change is made. (C) If a taxpayer's method of accounting is changed from an accrual to an installment method, any additional tax for the year of such change of method and for any subsequent year which is attributable to the receipt of installment payments properly accrued in a prior year, shall be reduced by the portion of tax for any prior taxable year attributable to the accrual of such installment payments, in accordance with regulations of the tax commission.
(b)City resident and city nonresident defined.
(5)Cross-reference. For effect of a change of resident status, see section 11-1754. (D) (i) Provided, however, a resident trust is not subject to tax under this article if all of the following conditions are satisfied: (I) all the trustees are domiciled outside the city of New York; (II) the entire corpus of the trusts, including real and tangible property, is located outside the city of New York; and (III) all income and gains of the trust are derived from or connected with sources outside of the city of New York, determined as if the trust were a non-resident trust.
(ii)For purposes of item (II) of clause (i) of this subparagraph, intangible property shall be located in this city if one or more of the trustees are domiciled in the city of New York.
(iii)Provided further, that for the purposes of item (I) of clause (i) of this subparagraph, a trustee which is a banking corporation as defined in subdivision (a) of section 11-640 of this title and which is domiciled outside the city of New York at the time it becomes a trustee of the trust shall be deemed to continue to be a trustee domiciled outside the city of New York notwithstanding that it thereafter otherwise becomes a trustee domiciled in the city of New York by virtue of being acquired by, or becoming an office or branch of, a corporate trustee domiciled within the city of New York. (Am. 2018 N.Y. Laws Ch. 59, 4/12/2018, eff. 4/12/2018)
