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dxdxssss)þÿ!dxdx&ÿÿ0 d duuuu)òÿ!dxdx&õÿP d dÝ ƒüœ!ÝÔUSUS.,ÔÝ  ÝÔ_ÔÑTRXì3Ø'LetterXà3Ø' Letter3Ø'LetterXà3Ø' Letteÿ3Ø'LetterTÑÒX°ÒÒX°ÒÔ_ÔÔ€+Xè\XXXÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÓ  ÓÑ€*ÑÑ8€è\XXdìdÈ8ÑÑ  Ñà@ìì"ìàSTATEÔ_Ô€OF€NEW€YORKˆÐ ° ÐÔ_ÔÌÔ_ÔÔ_Ôà@â â ìàDEPARTMENTÔ_Ô€OF€TAXATION€AND€FINANCEˆÐ ˆØ ÐÌÔ_Ôà@‡ ‡ ìàCOMMISSIONERÔ_Ô€OF€TAXATION€AND€FINANCEˆÐ `° ÐÌÔ_Ôà@"ìàALBANY,Ô_Ô€NEW€YORKˆÐ 8 ˆ ÐÌÌÓÓà ° àPursuant€to€the€authority€contained€in€subdivision€First€of€section€171€and€subsection€(a)€of€section€697€ofÐ ü L  Ðthe€Tax€Law,€the€Commissioner€of€Taxation€and€Finance€hereby€proposes€to€make€and€adopt€the€followingÐ Ô$  Ðamendments€to€the€New€York€State€Personal€Income€Tax€Regulations€under€Article€22€of€the€Tax€Law,€as€publishedÐ ¬ü  Ðin€Ô_ÔSubchapterÔ_Ô€A€of€Chapter€II€of€Title€20€of€the€Official€Compilation€of€Codes,€Rules€and€Regulations€of€the€StateÐ „Ô  Ðof€New€York,€to€read€as€follows:Ð \¬ Ðà ° àSection€1.€€€Section€113.1€of€such€regulations€is€REPEALED€and€a€new€section€113.1€is€added€to€read:Ð 4„ Ðà ° àòòSection€113.1€€€New€York€deduction€of€a€resident€individual.€€€€€€(Tax€Law,€ðð€613)Ð  \ Ðà ° àÔ‡Xè\XX+Xè\Ô(a)€The€New€York€deduction€of€a€resident€individual€on€the€New€York€State€returnÔ#†+Xè\XXXè\:#ÔÔ‡Xè\XX+Xè\Ô€shall€be€the€individualððsÐ ä4 ÐNew€York€standard€deduction,€as€allowed€under€section€614€of€the€Tax€Law,€unless€the€individual€elects€to€deductÐ ¼  Ðthe€New€York€itemized€deduction,€as€allowed€under€section€615€of€the€Tax€Law.Ð ”ä Ðà ° à(b)€A€resident€individual€may€only€elect€to€claim€itemized€deductions€on€the€New€York€State€return€ifÐ l¼ Ðitemized€deductions€were€claimed€on€the€individualððs€Federal€income€tax€return€for€the€same€taxable€year.Ð D!” Ðà ° àÔ_Ô(cÔ_Ô)€For€more€information€concerning€the€New€York€deduction€of€a€resident€individual,€€see€Parts€114€andÐ #l! Ð115€of€this€Article.Ð ô$D # Ðóóà ° àSection€2.€Paragraph€(1)€of€subdivision€(a)€of€section€114.1€of€such€regulations€is€amended€to€read€asÐ Ì&"% Ðfollows:Ð ¤(ô#' Ðà ° àÔ#†+Xè\XXXè\Ì#ÔÔ‡Xè\XX+Xè\Ô(a)€Ô_Ôð ðGeneral.ðð€(1)€A€resident€individual€may€claim€the€New€York€standard€deduction€on€such€individual'sÐ |*Ì%) ÐNew€York€State€personal€income€tax€return,€even€though€itemized€deductions€were€claimed€for€the€same€year€onÐ T,¤'+L Ðsuch€individual's€Federal€income€tax€return.€The€òòamount€of€theóó€New€York€standard€deduction€òòwhich€can€be€claimedóóÐ d Ðmust€be€determined€in€accordance€with€[subdivision€(b)€of€this]€section€òò614€of€the€Tax€Lawóó.Ð <Ø Ðà ° àSection€3.€€Subdivision€(b)€of€section€114.1€of€such€regulations€is€REPEALED€and€subdivision€(c)€of€suchÐ  ° Ðsection€is€relettered€to€be€subdivision€(b)€and€amended€to€read€as€follows:Ð ì ˆ Ðà ° à(b)€òòFor€purposes€of€section€614€of€the€Tax€Law,€the€following€definitions€will€apply:óóÐ Ä ` Ðà ° à€€€€(1)€Unmarried€individual.€[For€purposes€of€this€section,€an]€òòAnóó€ð ðunmarried€individualðð€is€a€residentÐ œ8  Ðindividual€who€is€not€married,€nor€the€head€of€a€household,€nor€a€surviving€spouse,€nor€an€individual€whose€FederalÐ t  Ðexemption€amount€is€zero.€Ð Lè  Ðà ° à€€€€(2)€Dependent€individual.€[For€purposes€of€this€section,€a]Ô#†+Xè\XXXè\² #ÔÔ‡Xè\XX+Xè\Ô€òòAóó€ð ðdependent€individualðð€is€a€residentÐ $À Ðindividual€whose€Federal€exemption€amount€is€zero.€Ô#†+Xè\XXXè\ #ÔÔ‡Xè\XX+Xè\ԀРü˜ Ðà ° àÔ#†+Xè\XXXè\Ê#ÔSection€4.€€Paragraph€(2)€of€subdivision€(a)€of€section€115.1€of€such€regulations€is€amended€to€read€asÐ Ôp Ðfollows:Ð ¬H Ðà ° à(2)€Except€as€provided€under€section€[115.5€of€this€Part]€òò615(f)€of€the€Tax€Lawóó,€the€New€York€itemizedÐ „  Ðdeduction€of€a€resident€individual€means€the€total€amount€of€deductions€from€Federal€adjusted€gross€income,€otherÐ \ø Ðthan€Federal€deductions€for€personal€exemptions,€as€provided€in€the€laws€of€the€United€States€for€the€taxable€year,Ð 4 Ð Ðwith€the€modifications€[specified€inòòóó€sections€115.2€and€115.3€of€this€Part]€òòrequired€by€sections€615(c)€and€(d)€of€theÐ  "¨ ÐTax€Lawóó.Ð ä#€  Ðà ° àSection€5.€€Section€115.2€of€such€regulations€is€REPEALED€and€a€new€section€115.2€is€added€to€read:Ð ¼%X" Ðððòò€115.2€€Modifications€reducing€Federal€itemized€deductions.€(Tax€Law,€ðð615(c))Ð ”'0!$ Ðà ° à(a)€The€total€amount€of€itemized€deductions€from€Federal€adjusted€gross€income€must€be€reduced€by€theÐ l)#& Ðamount€of€the€items€specified€in€section€615(c)€of€the€Tax€Law.€The€total€amount€of€subtraction€modificationsÐ D+à$( Ðrequired€by€section€615(c)€of€the€Tax€Law€may€be€limited€to€the€extent€provided€in€subdivision€(b)€of€this€section.Ð -¸&* Ðà ° à(b)€New€York€State€modifications€to€the€Federal€itemized€deduction€amounts€subject€to€Federal€floors,Ð d Ðreductions€and€limitations.€€(1)€When€a€modification€required€by€any€of€the€paragraphs€in€section€615(c)€of€the€TaxÐ <Ø ÐLaw€pertains€to€Federal€itemized€deductions€that€have€been€reduced€or€limited€by€Federal€provisions€other€than€theÐ  ° Ðoverall€limitation€on€itemized€deductions€required€by€section€68€of€the€Internal€Revenue€Code,€then€the€modificationÐ ì ˆ Ðrequired€by€that€paragraph€will€be€determined€on€a€pro€rata€basis.€€(An€example€of€this€type€of€modification€is€theÐ Ä ` Ðmodification€for€premiums€paid€for€long„term€care€insurance€under€section€615(c)(4)€of€the€Tax€Law;€the€premiumsÐ œ8  Ðare€an€item€of€deduction€on€the€Federal€return€as€a€medical€expense.€Medical€expenses€are€only€allowed€as€aÐ t  Ðdeduction€to€the€extent€that€they€exceed€7.5€percent€of€adjusted€gross€income.)€€The€amount€of€each€modificationÐ Lè  Ðis€determined€by€multiplying€the€amount€of€all€Federal€itemized€deductions€that€are€subject€to€the€particular€floor,Ð $À Ðreduction,€or€limitation€being€applied,€after€application€of€such€floor,€reduction,€or€limitation,€by€a€fraction.€€TheÐ ü˜ Ðnumerator€of€the€fraction€is€the€amount€of€the€item€of€€deduction,€which€is€subject€to€modification€as€required€byÐ Ôp Ða€particular€paragraph€of€section€615(c)€of€the€Tax€Law,€that€would€have€been€allowed€for€Federal€income€taxÐ ¬H Ðpurposes€if€there€were€no€Federal€floor,€reduction€or€limitation.€The€denominator€is€the€amount€of€all€FederalÐ „  Ðitemized€deductions€that€are€subject€to€the€particular€floor,€reduction,€or€limitation€being€applied,€before€applicationÐ \ø Ðof€such€floor,€reduction,€or€limitation.€€The€numerator€and€the€denominator€of€the€fraction€are€determined€withoutÐ 4 Ð Ðregard€to€the€effect€of€the€overall€limitation.Ð  "¨ Ðà8 ° àExample:€€For€the€2003€tax€year,€taxpayer€Y€is€a€single€taxpayer€with€a€Federal€adjusted€grossÐ ä#€  Ðincome€of€$80,000.€€Y€is€61€years€old.€€Yððs€Federal€form€1040€schedule€A€contains€the€followingÐ ¼%X" Ðinformation:Д'0!$°(#°(# Ðà8 ° àTotal€medical€and€dental€expensesà h àà À à18,000Ðl)#&°(#°(# Ðà8 ° àLess:€Limitation€(7.5%€of€80,000)à h àà À àóó€€ò ò6,000ó óòòÐD+à$(°(#°(# Ðà8 ° àMedical€and€dental€expenses€allowedà À à12,000Ð-¸&*°(#°(# Ðà8 ° àà  àOf€Yððs€total€medical€and€dental€expenses,€$2,000€were€for€long€term€care€insuranceÐ d Ðpremiums€(this€amount€is€below€the€Federal€deduction€limit€for€an€individual€who€is€61€years€old).€Ð <Ø ÐSection€615(c)(4)€requires€that€Y€must€make€a€subtraction€modification€for€long€term€care€insuranceÐ  ° Ðpremiums€allowed€as€a€Federal€itemized€deduction.€€The€amount€of€the€subtraction€modification€isÐ ì ˆ Ðcomputed€as€follows:ÐÄ `°(#°(# Ðà8 ° àà  àThe€total€medical€and€dental€expenses€allowed€after€the€limitation€is€applied,€$12,000,€isÐ œ8  Ðmultiplied€by€a€fraction.€€The€numerator€is€the€amount€subject€to€the€modification€in€sectionÐ t  Ð615(c)(4),€the€long€term€care€insurance€premium€of€$2,000.€€The€denominator€is€the€total€medicalÐ Lè  Ðand€dental€expenses€before€application€of€the€limitation,€$18,000.Ð$À°(#°(# Ðà8 ° àà  àThe€subtraction€modification€for€long€term€care€insurance€premiums€is:€$12,000€xÐ ü˜ Ð$2,000/$18,000€=€$1333.ÐÔp°(#°(# Ðà ° à(2)€When€the€amount€of€the€Federal€itemized€deductions€otherwise€allowable€for€the€taxable€year€is€reducedÐ ¬H Ðby€the€overall€limitation€on€itemized€deductions€required€by€section€68€of€the€Internal€Revenue€Code,€then€theÐ „  Ðamount€of€the€modifications€required€by€any€of€the€paragraphs€in€section€615(c)€of€the€Tax€Law€that€are€also€subjectÐ \ø Ðto€the€overall€limitation€will€be€reduced€on€a€pro€rata€basis.€(Examples€of€this€type€of€€modification€are:€state€andÐ 4 Ð Ðlocal€income€taxes€described€in€section€615(c)(1)€of€the€Tax€Law;€expenses€or€amortizable€bond€premiums€describedÐ  "¨ Ðin€section€615(c)(3)€of€the€Tax€Law;€and€charitable€contributions€included€in€the€items€of€deduction,€for€aÐ ä#€  Ðshareholder€of€a€non„electing€S€corporation,€described€in€section€615(c)(6)€of€the€Tax€Law.)€The€amount€of€theÐ ¼%X" Ðreduction€for€all€the€modifications€subject€to€the€overall€limitation€is€determined€by€multiplying€the€total€amountÐ ”'0!$ Ðof€all€the€€modifications€required€by€section€615(c)€that€are€subject€to€the€overall€limitation€by€a€fraction.€TheÐ l)#& Ðnumerator€of€the€fraction€is€the€amount€of€the€reduction€in€Federal€itemized€deductions€resulting€from€theÐ D+à$( Ðapplication€of€the€overall€limitation.€€€The€denominator€of€the€fraction€is€the€total€amount€of€the€Federal€itemizedÐ -¸&* Ðdeductions€otherwise€allowable€for€the€taxable€year€before€the€overall€limitation€is€applied€minus€the€amount€of€theÐ d Ðitemized€deductions€excluded€from€the€overall€limitation€by€the€provisions€of€subdivision€(c)€of€section€68€of€theÐ <Ø ÐInternal€Revenue€Code.€€€That€subdivision€provides€that€certain€deductions€will€not€be€subject€to€the€reduction€ofÐ  ° Ðitemized€deductions€required€by€subdivision€(a)€of€€section€68€€(that€is,€€those€deductions€relating€to€medicalÐ ì ˆ Ðexpense,€deductions€allowed€for€investment€interest,€and€deductions€for€casualty€or€theft€losses).Ð Ä ` Ðà8 ° àÔ‡Xè\XX+Xè\ÔExample:€€For€the€2003€tax€year,€taxpayer€X€is€a€single€taxpayer€with€a€Federal€adjusted€grossÐ œ8  Ðincome€of€$200,000.€€€Xððs€Federal€form€1040€€Schedule€A€contains€the€following€information:Ðt °(#°(# Ðà8 ° àTotal€medical€and€dental€expenses€à0h°(#°(#àà0Àh(#h(#àà0À(#À(#àóó€€òò25,000ÐLè (#(# Ðà8 ° àLess:€Limitation€(7.5%€of€$200,€000)óó€€€€€€€€€€€€€€€€€€€€€€€€€€€ò ò15,000ó óòòÐ$À°(#°(# Ðà8 ° àMedical€and€dental€expenses€allowedà0À°(#°(#àà0À(#À(#àà0p(#(#àà0Èp(#p(#à10,000Ðü˜È(#È(# Ðà ° àTaxes:óó€€€€€€€€òòState€and€Local€incomeóó€€€€€€€€€€€€€€€€€òò4,000Ð Ôp Ðà8 ° àóó€€€€€€€€€€€€€€€€€€€òòReal€estate€property€taxesóó€€€€€€€€€€€€€ò ò3,500ó óòòЬH°(#°(# Ðà8 ° àTotal€Taxesà0` °(#°(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àà0Àh(#h(#àà0À(#À(#àà0p(#(#àà0Èp(#p(#àóó€€òò7,500Є È(#È(# Ðà8 ° àHome€mortgage€interestóó€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€à0À°(#°(#àòòà0À(#À(#àà0p(#(#àà0Èp(#p(#àóó€€€òò5,000Ð\øÈ(#È(# Ðà ° àGifts€to€charityóó€€òòà0 ¸ àà0¸ €%¸ €%àà0h€%€%àà0Àh€%h€%àà0À€%À€%àà0p€%€%àà0Èp€%p€%àóó€€€ò ò2,500ó óòòÐ4 ÐÈ€%È€% Ðà8 ° àTotal€itemized€deductions€before€overall€limitationà0°(#°(#àà0p(#(#àà0Èp(#p(#àóó€òò25,000à0xÈ(#È(#àÐ "¨x(#x(# Ðà8 ° àThe€amount€of€itemized€deductions€after€the€limitationà0p°(#°(#àà0Èp(#p(#àóó€òò22,988Ðä#€ È(#È(# Ðà8 ° àà  àTo€compute€the€New€York€itemized€deduction,€X€must€determine€the€amount€of€theÐ ¼%X" Ðsubtraction€modification€required€€by€section€615(c)€after€taking€into€consideration€the€pro€rataÐ ”'0!$ Ðreduction€for€items€subject€to€the€Federal€overall€limitation.€€Ðl)#&°(#°(# Ðà8 ° àà  àThe€amount€of€the€itemized€deductions€that€is€€subject€to€a€section€615€(c)€modification€and€Ð D+à$( Ðis€subject€to€the€overall€limitation€is€$4000€(€the€amount€of€the€state€and€local€income€taxes).€In€thisÐ -¸&* Ðexample,€Xððs€gifts€to€charity€are€not€subject€to€any€section€615(c)€modification.€Ðd°(#°(# Ðà8 ° àà  àThis€amount,€$4000,€is€multiplied€by€a€fraction€to€compute€the€pro€rata€reduction€in€theÐ <Ø Ðsubtraction€modification.€€The€numerator€is€$2012,€which€is€the€amount€that€Xððs€€total€itemizedÐ  ° Ðdeductions€are€reduced€by€the€overall€limitation€($25,000€ðð$€22,988€=€$2012).€€The€denominator€isÐ ì ˆ Ð$15,€000,€which€is€the€total€itemized€deductions€before€the€overall€limitation€is€applied€minus€theÐ Ä ` Ðamount€of€the€itemized€deductions€excluded€from€the€overall€limitation€by€IRC€section€68(c),€in€thisÐ œ8  Ðcase,€the€medical€and€dental€expenses€($25,000€ðð€$10,000€=€$15,000).€Ðt °(#°(# Ðà8 ° àà  àThe€computation€of€the€pro€rata€€reduction€is:€€$4,000€€ð'ð€$2,012ðð$15,000€=€$536.ÐLè °(#°(# Ðà8 ° àà  àThe€total€section€615(c)€subtraction€modification€for€items€subject€to€the€overall€limitationÐ $À Ðfor€€X€in€computing€the€New€York€itemized€deduction€is€€$3464€(€$4,000€„€$536€=€$3,464€).Ô#†+Xè\XXXè\0#ÔÐü˜°(#°(# Ðà ° à(c)€Section€615(c)(6)€of€the€Tax€Law€requires€a€shareholder€of€a€Federal€S€corporation€to€reduce€FederalÐ Ôp Ðitemized€deductions€by€the€amount€of€items€of€€deduction€attributable€to€such€S€corporation€included€in€FederalÐ ¬H Ðitemized€deductions€if€the€S€corporation€has€not€made€the€election€under€section€660(a)€of€the€Tax€Law€to€be€treatedÐ „  Ðas€a€New€York€S€corporation.€€€An€exception€is€made€for€a€resident€shareholder€of€an€S€corporation€that€cannot€makeÐ \ø Ðsuch€election.€€Examples€of€S€corporations€that€cannot€make€the€section€660(a)€election€are:€€a€foreign€S€corporationÐ 4 Ð Ð(that€is,€an€S€corporation€that€is€not€incorporated€in€New€York€State)€that€does€not€do€business€in€New€York€StateÐ  "¨ Ðand€an€S€corporation€that€is€subject€to€tax€under€article€9€of€the€Tax€Law.Ð ä#€  Ðóóà ° àSection€6.€€Section€115.3€of€such€regulations€is€REPEALED€and€a€new€section€115.3€is€added€to€read€asÐ ¼%X" Ðfollows:Ð ”'0!$ Ðòòðð€115.3€€Modifications€increasing€Federal€itemized€deductions.€(Tax€Law,€ðð€615(d))Ð l)#& Ðóóà ° àòò(a)€€The€total€amount€of€itemized€deductions€from€Federal€adjusted€gross€income€should€be€increased€by€theÐ D+à$( Ðamount€of€the€items€specified€in€section€615(d)€of€the€Tax€Law.óóÐ -¸&* Ðà ° àSection€7.€€Section€115.4€of€such€regulations€is€amended€to€read€as€follows:Ð d ÐSec.€115.4€€Partners€and€shareholders€of€S€corporations.€(Tax€Law,€ðð615(e))€Ð <Ø Ðà ° à(a)€ð ðPartners.ðð€Where€a€resident€individual€is€a€member€of€a€partnership€and€such€individual€determines€NewÐ  ° ÐYork€taxable€income€by€using€itemized€deductions,€then€such€individual's€share€of€any€partnership€items€ofÐ ì ˆ Ðdeduction€covered€by€òòany€ofóó€òòóóthe€provisions€of€[section]€òòsections€615(c)€and€615(d)€of€the€Tax€Law€and€as€furtherÐ Ä ` Ðspecified€in€sectionsóó€115.2€[or]€òòandóó€115.3€of€this€Partòòóó€is€also€subject€to€modification.€The€amount€of€the€modificationÐ œ8  Ðshould€be€computed€by€the€partner€in€accordance€with€the€rules€contained€in€section€117.3€of€this€Article.€In€suchÐ t  Ðcase,€the€partner€should€combine€such€partner's€share€of€each€modification€of€a€partnership€deduction€with€anyÐ Lè  Ðcorresponding€modification€applicable€to€such€partner's€individual€Federal€itemized€deductions.€This€treatment€ofÐ $À Ðpartnership€modifications€is€different€from€the€treatment€of€estate€and€trust€modifications,€which€are€all€combinedÐ ü˜ Ðinto€a€single€net€figure,€called€the€New€York€fiduciary€adjustment,€as€provided€in€section€119.1€of€this€Article.€Ð Ôp Ðà ° à(b)€ð ðShareholders€of€S€corporations.ðð€(1)€Where€a€resident€individual€is€a€shareholder€of€an€S€corporationÐ ¬H Ðfor€which€the€election€to€be€treated€as€a€New€York€S€corporation€under€section€660(a)€of€the€Tax€Law€is€in€effect,Ð „  Ðor€is€a€shareholder€of€an€S€corporation€that€cannot€make€the€election€provided€for€under€section€660(a)€of€the€TaxÐ \ø ÐLaw€(e.g.,€a€foreign€S€corporation€(i.e.,€an€S€corporation€that€is€not€incorporated€in€New€York€State)€that€does€notÐ 4 Ð Ðdo€business€in€New€York€State,€or€an€S€corporation€that€is€taxed€under€article€9€of€the€Tax€Law),€and€such€individualÐ  "¨ Ðdetermines€New€York€taxable€income€by€using€itemized€deductions,€then€such€individual€shareholder's€share€of€anyÐ ä#€  ÐS€corporation€items€of€deduction€covered€by€òòany€ofóó€the€provisions€of€[sectionòòóó€115.2€of€this€Part,€except€subdivisionÐ ¼%X" Ð(e)€thereof,€or€by€section€115.3]€òòsections€615(c)€and€(d)€of€the€Tax€Law€and€sections€115.2€and€115.3óó€of€this€PartÐ ”'0!$ Ðis€also€subject€to€modification.€The€amount€of€the€modification€should€be€computed€by€the€shareholder€inÐ l)#& Ðaccordance€with€section€617(a)€of€the€Tax€Law.€In€such€case,€the€resident€individual€shareholder€should€combineÐ D+à$( Ðthe€share€of€each€modification€of€an€S€corporation€deduction€with€any€corresponding€modification€applicable€to€suchÐ -¸&* Ðshareholder's€individual€Federal€itemized€deductions.€This€treatment€of€S€corporation€modifications€is€different€fromÐ d Ðthe€treatment€of€estate€and€trust€modifications,€which€are€all€combined€into€a€single€net€figure,€called€the€New€YorkÐ <Ø Ðfiduciary€adjustment,€as€provided€in€section€119.1€of€this€Article.Ð  ° Ðà ° à(2)€A€resident€individual€shareholder€of€a€foreign€S€corporation€(i.e.,€an€S€corporation€that€is€not€incorporatedÐ ì ˆ Ðin€New€York€State)€that€does€business€in€New€York€State,€or€an€S€corporation€incorporated€in€New€York€State,Ð Ä ` Ðeither€of€which€can€make€the€election€provided€for€by€section€660(a)€of€the€Tax€Law€but€does€not,€is€not€subject€toÐ œ8  Ðthe€provisions€of€this€subdivision.€The€shareholder€would€be€required€to€make€the€modification€[referred€to€inÐ t  Ðsection€115.2€of€this€Part]€òòrequired€by€section€615(c)(6)€of€the€Tax€Lawóó.€Ð Lè  Ðà ° à(3)€In€the€case€of€a€New€York€S€termination€year€(see€section€208.1-A€of€the€Tax€Law),€the€amount€of€theÐ $À Ðmodifications€referred€to€in€paragraphs€(1)€and€(2)€of€this€subdivision€must€be€determined€in€accordance€with€theÐ ü˜ Ðprovisions€of€òòsection€612(s)€of€the€Tax€Law€andóó€section€112.12€of€this€Part.Ð Ôp ÐÌÓÓDated:à0 ° àAlbany,€New€YorkЄ °€%°€% Ðà ° àDecember€16,€€2003Ð p  ÐÌÌÌà0 ° àà0°€%°€%àà0` €%€%àà0¸ ` €%` €%àà0¸ €%¸ €%àà h àà À à___________________________________Ð !¼€%€% Ðà0 ° àà0°€%°€%àà0` €%€%àà0¸ ` €%` €%àà0¸ €%¸ €%àà h àà À àAndrew€S.€EristoffÐ "¨€%€% Ðà ° àà  àà ` àà ¸ àà  àà h àà À àCommissioner€of€Taxation€and€Finance