§ 105 — Unincorporated business gross income

§ 105. Unincorporated business gross income. (a)\nGeneral.--Unincorporated business gross income of an unincorporated\nbusiness means the sum of the items of income and gain of the business,\nof whatever kind and in whatever form paid, includible in gross income\nfor the taxable year for federal income tax purposes, including income\nand gain from any property employed in the business, or from liquidation\nof the business, or from collection of installment obligations of the\nbusiness, with the modifications specified in this section.\n (b) Modifications increasing federal gross income.--There shall be\nadded to federal gross income of the business the following items\nattributable to the business:\n (1) Interest income on obligations of any state other than this state,\nor of a political subdivision of any such other state unless created by\ncompact or agreement to which this state is a party; and\n (2) Interest or dividend income on obligations or securities of any\nauthority, commission, or instrumentality of the United States, which\nthe laws of the United States exempt from federal income tax but not\nfrom state or local income taxes.\n (3) In the case of a taxpayer who has exercised the election permitted\nby subdivision (b) of section one hundred eight, if the property to\nwhich such election relates was sold or otherwise disposed of during the\ntaxable year, the amount required by said subdivision to be added to\nfederal gross income.\n (4) The entire amount allowable as an exclusion or deduction for stock\ntransfer taxes imposed by article twelve of the tax law in determining\nfederal gross income but only to the extent that such taxes are incurred\nand paid in market making transactions.\n (5) the amount allowed as an exclusion or deduction for sales and use\ntaxes imposed by section eleven hundred seven of the tax law in\ndetermining federal gross income but only such portion of such exclusion\nor deduction which is not in excess of the amount of the credit allowed\npursuant to subdivision (d) of section one hundred one of this title.\n (6) The amount allowed as an exclusion or deduction in determining\nfederal gross income and also allowed for the taxable year under this\nsection but only such portion of such exclusion or deduction which is\nnot in excess of the amount of the credit allowed pursuant to\nsubdivision (e) of section one hundred one of this title.\n (7) The amount allowed as an exclusion or deduction as rent in\ndetermining federal gross income but only such portion of such exclusion\nor deduction which is not in excess of the amount of the credit allowed\npursuant to subdivision (f) of section one hundred one of this title.\n (8) The amount allowed as an exclusion or deduction for sales and use\ntaxes imposed by section eleven hundred seven of the tax law in\ndetermining federal gross income but only such portion of such exclusion\nor deduction which is not in excess of the amount of the credit allowed\npursuant to subdivisions (g) and (h) of section one hundred one of this\ntitle.\n (9) For taxable years beginning after December thirty-first, nineteen\nhundred eighty-one, except with respect to property which is a qualified\nmass commuting vehicle described in subparagraph (D) of paragraph eight\nof subsection (f) of section one hundred sixty-eight of the internal\nrevenue code (relating to qualified mass commuting vehicles), any amount\nwhich would properly be includible for federal income tax purposes had\nthe taxpayer not made the election permitted pursuant to such paragraph\neight as it was in effect for agreements entered into prior to January\nfirst, nineteen hundred eighty-four.\n 10. Upon the disposition of recovery property to which subdivision\nthirteen of section one hundred six applies, the amount, of any, by\nwhich the aggregate of the amounts described in such subdivision\nthirteen attributable to such property exceeds the aggregate of the\namounts described in subdivision twelve of section one hundred six\nattributable to such property.\n (c) Modifications reducing federal gross income.--There shall be\nsubtracted from federal gross income of the business the following items\nattributable to the business:\n (1) Interest income on obligations of the United States and its\npossessions to the extent includible in gross income for federal income\ntax purposes;\n (2) Interest or dividend income on obligations or securities of any\nauthority, commission or instrumentality of the United States to the\nextent includible in gross income for federal income tax purposes but\nexempt from state or local income taxes under the laws of the United\nStates;\n (3) Interest or dividend income on obligations or securities to the\nextent exempt from income tax under the laws of the city or this state\nauthorizing the issuance of such obligations or securities but\nincludible in gross income for federal income tax purposes; and\n (4) The amount of any refund or credit for overpayment of income taxes\nimposed by the city, this state or any other taxing jurisdiction, to the\nextent properly included in gross income for federal income tax\npurposes.\n (5) With respect to gain derived from the sale or other disposition of\nany property acquired prior to January first, nineteen hundred\nsixty-six, except property described in subsections one and four of\nsection twelve hundred twenty-one of the internal revenue code, the\ndifference between\n (a) the amount of gain included in federal gross income with respect\nto each such property, and\n (b) the amount of gain (if smaller than the amount described in (a))\nthat would be included in federal gross income with respect to each such\nproperty if the federal adjusted basis of such property on the date of\nthe sale or other disposition had been equal to its fair market value on\nJanuary first, nineteen hundred sixty-six, or the date of its sale or\nother disposition prior to January first, nineteen hundred sixty-six,\nplus or minus all adjustments to basis made with respect to such\nproperty for federal income tax purposes for periods on and after\nJanuary first, nineteen hundred sixty-six; provided, however, that the\ntotal modification provided by this subparagraph shall not exceed the\ntaxpayer's net gain from the sale or other disposition of all such\nproperty.\n (6) For taxable years beginning after December thirty-first, nineteen\nhundred eighty-one, except with respect to property which is a qualified\nmass commuting vehicle described in subparagraph (D) of paragraph eight\nof subsection (f) of section one hundred sixty-eight of the internal\nrevenue code (relating to qualified mass commuting vehicles), any amount\nproperly includible in federal gross income solely as a result of an\nelection made pursuant to the provisions of such paragraph eight as it\nwas in effect for agreements entered into prior to January first,\nnineteen hundred eighty-four.\n (7) Upon the disposition of recovery property to which subdivision\nthirteen of section one hundred six applies, the amount, if any, by\nwhich the aggregate of the amounts described in subdivision twelve of\nsection one hundred six attributable to such property exceeds the\naggregate of the amounts described in subdivision thirteen of section\none hundred six attributable to such property.\n (d) Upon the disposition of property to which subdivisions 14 and 15\nof section 106 of this chapter apply, the amount of any gain or loss\nincludible in entire net income shall be adjusted to reflect the\nmodifications provided in such subdivisions attributable to such\nproperty.\n