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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€+XþtXXXÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÓ  ÓÑ€*ÑÑ8€þtXXdìdÈ8ÑÑ  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€Ô_ÔFirst€Deputy€Commissioner€of€Taxation€and€Finance,€being€duly€authorized€to€act€in€the€absenceÐ Ô$  Ðof€the€CommissionerÔ_Ô€of€Taxation€and€Ô_ÔFinance,Ô_Ô€hereby€Ô_Ômakes€and€adoptsÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_Ô€the€following€amendments€to€the€New€YorkÐ ¬ü  ÐState€Personal€Income€Tax€Regulations€under€Article€22€of€the€Tax€Law,€as€published€in€Ô_ÔSubchapterÔ_Ô€A€of€ChapterÐ „Ô  ÐII€of€Title€20€of€the€Official€Compilation€of€Codes,€Rules€and€Regulations€of€the€State€of€New€York,€to€read€asÐ \¬ Ðfollows:Ð 4„ Ðà ° àSection€1.€€€Section€113.1€of€such€regulations€is€REPEALED€and€a€new€section€113.1€is€added€to€read:Ð  \ Ðà ° àòòSection€113.1€€€New€York€deduction€of€a€resident€individual.€€€€€€(Tax€Law,€ðð€613)Ð ä4 Ðà ° àÔ‡XþtXX+XþtÔ(a)€The€New€York€deduction€of€a€resident€individual€on€the€New€York€State€returnÔ#†+XþtXXXþtk #ÔÔ‡XþtXX+XþtÔ€shall€be€the€individualððsÐ ¼  ÐNew€York€standard€deduction,€as€allowed€under€section€614€of€the€Tax€Law,€unless€the€individual€elects€to€deductÐ ”ä Ðthe€New€York€itemized€deduction,€as€allowed€under€section€615€of€the€Tax€Law.Ð l¼ Ðà ° à(b)€A€resident€individual€may€only€elect€to€claim€itemized€deductions€on€the€New€York€State€return€ifÐ D!” Ðitemized€deductions€were€claimed€on€the€individualððs€Federal€income€tax€return€for€the€same€taxable€year.Ð #l! Ðà ° àÔ_Ô(cÔ_Ô)€For€more€information€concerning€the€New€York€deduction€of€a€resident€individual,€€see€Parts€114€andÐ ô$D # Ð115€of€this€Article.Ð Ì&"% Ðóóà ° àSection€2.€Paragraph€(1)€of€subdivision€(a)€of€section€114.1€of€such€regulations€is€amended€to€read€asÐ ¤(ô#' Ðfollows:Ð |*Ì%) Ðà ° àÔ#†+XþtXXXþtý #ÔÔ‡XþtXX+XþtÔ(a)€Ô_Ôð ðGeneral.ðð€(1)€A€resident€individual€may€claim€the€New€York€standard€deduction€on€such€individual'sÐ T,¤'+L ÐNew€York€State€personal€income€tax€return,€even€though€itemized€deductions€were€claimed€for€the€same€year€onÐ d Ðsuch€individual's€Federal€income€tax€return.€The€òòamount€of€theóó€New€York€standard€deduction€òòwhich€can€be€claimedóóÐ <Ø Ðmust€be€determined€in€accordance€with€[subdivision€(b)€of€this]€section€òò614€of€the€Tax€Lawóó.Ð  ° Ðà ° àSection€3.€€Subdivision€(b)€of€section€114.1€of€such€regulations€is€REPEALED€and€subdivision€(c)€of€suchÐ ì ˆ Ðsection€is€relettered€to€be€subdivision€(b)€and€amended€to€read€as€follows:Ð Ä ` Ðà ° à(b)€òòFor€purposes€of€section€614€of€the€Tax€Law,€the€following€definitions€will€apply:óóÐ œ8  Ðà ° à€€€€(1)€Unmarried€individual.€[For€purposes€of€this€section,€an]€òòAnóó€ð ðunmarried€individualðð€is€a€residentÐ t  Ðindividual€who€is€not€married,€nor€the€head€of€a€household,€nor€a€surviving€spouse,€nor€an€individual€whose€FederalÐ Lè  Ðexemption€amount€is€zero.€Ð $À Ðà ° à€€€€(2)€Dependent€individual.€[For€purposes€of€this€section,€a]Ô#†+XþtXXXþtã #ÔÔ‡XþtXX+XþtÔ€òòAóó€ð ðdependent€individualðð€is€a€residentÐ ü˜ Ðindividual€whose€Federal€exemption€amount€is€zero.€Ô#†+XþtXXXþt>#ÔÔ‡XþtXX+XþtԀРÔp Ðà ° àÔ#†+XþtXXXþtû#ÔSection€4.€€Paragraph€(2)€of€subdivision€(a)€of€section€115.1€of€such€regulations€is€amended€to€read€asÐ ¬H Ðfollows:Ð „  Ðà ° à(2)€Except€as€provided€under€section€[115.5€of€this€Part]€òò615(f)€of€the€Tax€Lawóó,€the€New€York€itemizedÐ \ø Ðdeduction€of€a€resident€individual€means€the€total€amount€of€deductions€from€Federal€adjusted€gross€income,€otherÐ 4 Ð Ðthan€Federal€deductions€for€personal€exemptions,€as€provided€in€the€laws€of€the€United€States€for€the€taxable€year,Ð  "¨ Ðwith€the€modifications€[specified€inòòóó€sections€115.2€and€115.3€of€this€Part]€òòrequired€by€sections€615(c)€and€(d)€of€theÐ ä#€  ÐTax€Lawóó.Ð ¼%X" Ðà ° àSection€5.€€Section€115.2€of€such€regulations€is€REPEALED€and€a€new€section€115.2€is€added€to€read:Ð ”'0!$ Ðððòò€115.2€€Modifications€reducing€Federal€itemized€deductions.€(Tax€Law,€ðð615(c))Ð l)#& Ðà ° à(a)€The€total€amount€of€itemized€deductions€from€Federal€adjusted€gross€income€must€be€reduced€by€theÐ D+à$( Ðamount€of€the€items€specified€in€section€615(c)€of€the€Tax€Law.€The€total€amount€of€subtraction€modificationsÐ -¸&* Ðrequired€by€section€615(c)€of€the€Tax€Law€may€be€limited€to€the€extent€provided€in€subdivision€(b)€of€this€section.Ð d Ðà ° à(b)€New€York€State€modifications€to€the€Federal€itemized€deduction€amounts€subject€to€Federal€floors,Ð <Ø Ðreductions€and€limitations.€€(1)€When€a€modification€required€by€any€of€the€paragraphs€in€section€615(c)€of€the€TaxÐ  ° ÐLaw€pertains€to€Federal€itemized€deductions€that€have€been€reduced€or€limited€by€Federal€provisions€other€than€theÐ ì ˆ Ðoverall€limitation€on€itemized€deductions€required€by€section€68€of€the€Internal€Revenue€Code,€then€the€modificationÐ Ä ` Ðrequired€by€that€paragraph€will€be€determined€on€a€pro€rata€basis.€€(An€example€of€this€type€of€modification€is€theÐ œ8  Ðmodification€for€premiums€paid€for€long„term€care€insurance€under€section€615(c)(4)€of€the€Tax€Law;€the€premiumsÐ t  Ðare€an€item€of€deduction€on€the€Federal€return€as€a€medical€expense.€Medical€expenses€are€only€allowed€as€aÐ Lè  Ðdeduction€to€the€extent€that€they€exceed€7.5€percent€of€adjusted€gross€income.)€€The€amount€of€each€modificationÐ $À Ðis€determined€by€multiplying€the€amount€of€all€Federal€itemized€deductions€that€are€subject€to€the€particular€floor,Ð ü˜ Ðreduction,€or€limitation€being€applied,€after€application€of€such€floor,€reduction,€or€limitation,€by€a€fraction.€€TheÐ Ôp Ðnumerator€of€the€fraction€is€the€amount€of€the€item€of€€deduction,€which€is€subject€to€modification€as€required€byÐ ¬H Ða€particular€paragraph€of€section€615(c)€of€the€Tax€Law,€that€would€have€been€allowed€for€Federal€income€taxÐ „  Ðpurposes€if€there€were€no€Federal€floor,€reduction€or€limitation.€The€denominator€is€the€amount€of€all€FederalÐ \ø Ðitemized€deductions€that€are€subject€to€the€particular€floor,€reduction,€or€limitation€being€applied,€before€applicationÐ 4 Ð Ðof€such€floor,€reduction,€or€limitation.€€The€numerator€and€the€denominator€of€the€fraction€are€determined€withoutÐ  "¨ Ðregard€to€the€effect€of€the€overall€limitation.Ð ä#€  Ðà8 ° àExample:€€For€the€2003€tax€year,€taxpayer€Y€is€a€single€taxpayer€with€a€Federal€adjusted€grossÐ ¼%X" Ðincome€of€$80,000.€€Y€is€61€years€old.€€Yððs€Federal€form€1040€schedule€A€contains€the€followingÐ ”'0!$ Ðinformation:Ðl)#&°(#°(# Ðà8 ° àTotal€medical€and€dental€expensesà h àà À à18,000ÐD+à$(°(#°(# Ðà8 ° àLess:€Limitation€(7.5%€of€80,000)à h àà À àóó€€ò ò6,000ó óòòÐ-¸&*°(#°(# Ðà8 ° àMedical€and€dental€expenses€allowedà À à12,000Ðd°(#°(# Ðà8 ° àà  àOf€Yððs€total€medical€and€dental€expenses,€$2,000€were€for€long€term€care€insuranceÐ <Ø Ðpremiums€(this€amount€is€below€the€Federal€deduction€limit€for€an€individual€who€is€61€years€old).€Ð  ° ÐSection€615(c)(4)€requires€that€Y€must€make€a€subtraction€modification€for€long€term€care€insuranceÐ ì ˆ Ðpremiums€allowed€as€a€Federal€itemized€deduction.€€The€amount€of€the€subtraction€modification€isÐ Ä ` Ðcomputed€as€follows:Ðœ8 °(#°(# Ðà8 ° àà  àThe€total€medical€and€dental€expenses€allowed€after€the€limitation€is€applied,€$12,000,€isÐ t  Ðmultiplied€by€a€fraction.€€The€numerator€is€the€amount€subject€to€the€modification€in€sectionÐ Lè  Ð615(c)(4),€the€long€term€care€insurance€premium€of€$2,000.€€The€denominator€is€the€total€medicalÐ $À Ðand€dental€expenses€before€application€of€the€limitation,€$18,000.Ðü˜°(#°(# Ðà8 ° àà  àThe€subtraction€modification€for€long€term€care€insurance€premiums€is:€$12,000€xÐ Ôp Ð$2,000/$18,000€=€$1333.ЬH°(#°(# Ðà ° à(2)€When€the€amount€of€the€Federal€itemized€deductions€otherwise€allowable€for€the€taxable€year€is€reducedÐ „  Ðby€the€overall€limitation€on€itemized€deductions€required€by€section€68€of€the€Internal€Revenue€Code,€then€theÐ \ø Ðamount€of€the€modifications€required€by€any€of€the€paragraphs€in€section€615(c)€of€the€Tax€Law€that€are€also€subjectÐ 4 Ð Ðto€the€overall€limitation€will€be€reduced€on€a€pro€rata€basis.€(Examples€of€this€type€of€€modification€are:€state€andÐ  "¨ Ðlocal€income€taxes€described€in€section€615(c)(1)€of€the€Tax€Law;€expenses€or€amortizable€bond€premiums€describedÐ ä#€  Ðin€section€615(c)(3)€of€the€Tax€Law;€and€charitable€contributions€included€in€the€items€of€deduction,€for€aÐ ¼%X" Ðshareholder€of€a€non„electing€S€corporation,€described€in€section€615(c)(6)€of€the€Tax€Law.)€The€amount€of€theÐ ”'0!$ Ðreduction€for€all€the€modifications€subject€to€the€overall€limitation€is€determined€by€multiplying€the€total€amountÐ l)#& Ðof€all€the€€modifications€required€by€section€615(c)€that€are€subject€to€the€overall€limitation€by€a€fraction.€TheÐ D+à$( Ðnumerator€of€the€fraction€is€the€amount€of€the€reduction€in€Federal€itemized€deductions€resulting€from€theÐ -¸&* Ðapplication€of€the€overall€limitation.€€€The€denominator€of€the€fraction€is€the€total€amount€of€the€Federal€itemizedÐ d Ðdeductions€otherwise€allowable€for€the€taxable€year€before€the€overall€limitation€is€applied€minus€the€amount€of€theÐ <Ø Ðitemized€deductions€excluded€from€the€overall€limitation€by€the€provisions€of€subdivision€(c)€of€section€68€of€theÐ  ° ÐInternal€Revenue€Code.€€€That€subdivision€provides€that€certain€deductions€will€not€be€subject€to€the€reduction€ofÐ ì ˆ Ðitemized€deductions€required€by€subdivision€(a)€of€€section€68€€(that€is,€€those€deductions€relating€to€medicalÐ Ä ` Ðexpense,€deductions€allowed€for€investment€interest,€and€deductions€for€casualty€or€theft€losses).Ð œ8  Ðà8 ° àÔ‡XþtXX+XþtÔExample:€€For€the€2003€tax€year,€taxpayer€X€is€a€single€taxpayer€with€a€Federal€adjusted€grossÐ t  Ðincome€of€$200,000.€€€Xððs€Federal€form€1040€€Schedule€A€contains€the€following€information:ÐLè °(#°(# Ðà8 ° àTotal€medical€and€dental€expenses€à0h°(#°(#àà0Àh(#h(#àà0À(#À(#àóó€€òò25,000Ð$À(#(# Ðà8 ° àLess:€Limitation€(7.5%€of€$200,€000)óó€€€€€€€€€€€€€€€€€€€€€€€€€€€ò ò15,000ó óòòÐü˜°(#°(# Ðà8 ° àMedical€and€dental€expenses€allowedà0À°(#°(#àà0À(#À(#àà0p(#(#àà0Èp(#p(#à10,000ÐÔpÈ(#È(# Ðà ° àTaxes:óó€€€€€€€€òòState€and€Local€incomeóó€€€€€€€€€€€€€€€€€òò4,000Ð ¬H Ðà8 ° àóó€€€€€€€€€€€€€€€€€€€òòReal€estate€property€taxesóó€€€€€€€€€€€€€ò ò3,500ó óòòЄ °(#°(# Ðà8 ° àTotal€Taxesà0` °(#°(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àà0Àh(#h(#àà0À(#À(#àà0p(#(#àà0Èp(#p(#àóó€€òò7,500Ð\øÈ(#È(# Ðà8 ° àHome€mortgage€interestóó€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€à0À°(#°(#àòòà0À(#À(#àà0p(#(#àà0Èp(#p(#àóó€€€òò5,000Ð4 ÐÈ(#È(# Ðà ° àGifts€to€charityóó€€òòà0 ¸ àà0¸ €%¸ €%àà0h€%€%àà0Àh€%h€%àà0À€%À€%àà0p€%€%àà0Èp€%p€%àóó€€€ò ò2,500ó óòòÐ "¨È€%È€% Ðà8 ° àTotal€itemized€deductions€before€overall€limitationà0°(#°(#àà0p(#(#àà0Èp(#p(#àóó€òò25,000à0xÈ(#È(#àÐä#€ x(#x(# Ðà8 ° àThe€amount€of€itemized€deductions€after€the€limitationà0p°(#°(#àà0Èp(#p(#àóó€òò22,988м%X"È(#È(# Ðà8 ° àà  àTo€compute€the€New€York€itemized€deduction,€X€must€determine€the€amount€of€theÐ ”'0!$ Ðsubtraction€modification€required€€by€section€615(c)€after€taking€into€consideration€the€pro€rataÐ l)#& Ðreduction€for€items€subject€to€the€Federal€overall€limitation.€€ÐD+à$(°(#°(# Ðà8 ° àà  àThe€amount€of€the€itemized€deductions€that€is€€subject€to€a€section€615€(c)€modification€and€Ð -¸&* Ðis€subject€to€the€overall€limitation€is€$4000€(€the€amount€of€the€state€and€local€income€taxes).€In€thisÐ d Ðexample,€Xððs€gifts€to€charity€are€not€subject€to€any€section€615(c)€modification.€Ð<Ø°(#°(# Ðà8 ° àà  àThis€amount,€$4000,€is€multiplied€by€a€fraction€to€compute€the€pro€rata€reduction€in€theÐ  ° Ðsubtraction€modification.€€The€numerator€is€$2012,€which€is€the€amount€that€Xððs€€total€itemizedÐ ì ˆ Ðdeductions€are€reduced€by€the€overall€limitation€($25,000€ðð$€22,988€=€$2012).€€The€denominator€isÐ Ä ` Ð$15,€000,€which€is€the€total€itemized€deductions€before€the€overall€limitation€is€applied€minus€theÐ œ8  Ðamount€of€the€itemized€deductions€excluded€from€the€overall€limitation€by€IRC€section€68(c),€in€thisÐ t  Ðcase,€the€medical€and€dental€expenses€($25,000€ðð€$10,000€=€$15,000).€ÐLè °(#°(# Ðà8 ° àà  àThe€computation€of€the€pro€rata€€reduction€is:€€$4,000€€ð'ð€$2,012ðð$15,000€=€$536.Ð$À°(#°(# Ðà8 ° àà  àThe€total€section€615(c)€subtraction€modification€for€items€subject€to€the€overall€limitationÐ ü˜ Ðfor€€X€in€computing€the€New€York€itemized€deduction€is€€$3464€(€$4,000€„€$536€=€$3,464€).Ô#†+XþtXXXþtL1#ÔÐÔp°(#°(# Ðà ° à(c)€Section€615(c)(6)€of€the€Tax€Law€requires€a€shareholder€of€a€Federal€S€corporation€to€reduce€FederalÐ ¬H Ðitemized€deductions€by€the€amount€of€items€of€€deduction€attributable€to€such€S€corporation€included€in€FederalÐ „  Ðitemized€deductions€if€the€S€corporation€has€not€made€the€election€under€section€660(a)€of€the€Tax€Law€to€be€treatedÐ \ø Ðas€a€New€York€S€corporation.€€€An€exception€is€made€for€a€resident€shareholder€of€an€S€corporation€that€cannot€makeÐ 4 Ð Ðsuch€election.€€Examples€of€S€corporations€that€cannot€make€the€section€660(a)€election€are:€€a€foreign€S€corporationÐ  "¨ Ð(that€is,€an€S€corporation€that€is€not€incorporated€in€New€York€State)€that€does€not€do€business€in€New€York€StateÐ ä#€  Ðand€an€S€corporation€that€is€subject€to€tax€under€article€9€of€the€Tax€Law.Ð ¼%X" Ðóóà ° àSection€6.€€Section€115.3€of€such€regulations€is€REPEALED€and€a€new€section€115.3€is€added€to€read€asÐ ”'0!$ Ðfollows:Ð l)#& Ðòòðð€115.3€€Modifications€increasing€Federal€itemized€deductions.€(Tax€Law,€ðð€615(d))Ð D+à$( Ðóóà ° àòò(a)€€The€total€amount€of€itemized€deductions€from€Federal€adjusted€gross€income€should€be€increased€by€theÐ -¸&* Ðamount€of€the€items€specified€in€section€615(d)€of€the€Tax€Law.óóÐ d Ðà ° àSection€7.€€Section€115.4€of€such€regulations€is€amended€to€read€as€follows:Ð <Ø ÐSec.€115.4€€Partners€and€shareholders€of€S€corporations.€(Tax€Law,€ðð615(e))€Ð  ° Ðà ° à(a)€ð ðPartners.ðð€Where€a€resident€individual€is€a€member€of€a€partnership€and€such€individual€determines€NewÐ ì ˆ ÐYork€taxable€income€by€using€itemized€deductions,€then€such€individual's€share€of€any€partnership€items€ofÐ Ä ` Ðdeduction€covered€by€òòany€ofóó€òòóóthe€provisions€of€[section]€òòsections€615(c)€and€615(d)€of€the€Tax€Law€and€as€furtherÐ œ8  Ðspecified€in€sectionsóó€115.2€[or]€òòandóó€115.3€of€this€Partòòóó€is€also€subject€to€modification.€The€amount€of€the€modificationÐ t  Ðshould€be€computed€by€the€partner€in€accordance€with€the€rules€contained€in€section€117.3€of€this€Article.€In€suchÐ Lè  Ðcase,€the€partner€should€combine€such€partner's€share€of€each€modification€of€a€partnership€deduction€with€anyÐ $À Ðcorresponding€modification€applicable€to€such€partner's€individual€Federal€itemized€deductions.€This€treatment€ofÐ ü˜ Ðpartnership€modifications€is€different€from€the€treatment€of€estate€and€trust€modifications,€which€are€all€combinedÐ Ôp Ðinto€a€single€net€figure,€called€the€New€York€fiduciary€adjustment,€as€provided€in€section€119.1€of€this€Article.€Ð ¬H Ðà ° à(b)€ð ðShareholders€of€S€corporations.ðð€(1)€Where€a€resident€individual€is€a€shareholder€of€an€S€corporationÐ „  Ðfor€which€the€election€to€be€treated€as€a€New€York€S€corporation€under€section€660(a)€of€the€Tax€Law€is€in€effect,Ð \ø Ðor€is€a€shareholder€of€an€S€corporation€that€cannot€make€the€election€provided€for€under€section€660(a)€of€the€TaxÐ 4 Ð ÐLaw€(e.g.,€a€foreign€S€corporation€(i.e.,€an€S€corporation€that€is€not€incorporated€in€New€York€State)€that€does€notÐ  "¨ Ðdo€business€in€New€York€State,€or€an€S€corporation€that€is€taxed€under€article€9€of€the€Tax€Law),€and€such€individualÐ ä#€  Ðdetermines€New€York€taxable€income€by€using€itemized€deductions,€then€such€individual€shareholder's€share€of€anyÐ ¼%X" ÐS€corporation€items€of€deduction€covered€by€òòany€ofóó€the€provisions€of€[sectionòòóó€115.2€of€this€Part,€except€subdivisionÐ ”'0!$ 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 l)#& Ðis€also€subject€to€modification.€The€amount€of€the€modification€should€be€computed€by€the€shareholder€inÐ D+à$( Ðaccordance€with€section€617(a)€of€the€Tax€Law.€In€such€case,€the€resident€individual€shareholder€should€combineÐ -¸&* Ðthe€share€of€each€modification€of€an€S€corporation€deduction€with€any€corresponding€modification€applicable€to€suchÐ d Ðshareholder's€individual€Federal€itemized€deductions.€This€treatment€of€S€corporation€modifications€is€different€fromÐ <Ø Ðthe€treatment€of€estate€and€trust€modifications,€which€are€all€combined€into€a€single€net€figure,€called€the€New€YorkÐ  ° Ðfiduciary€adjustment,€as€provided€in€section€119.1€of€this€Article.Ð ì ˆ Ðà ° à(2)€A€resident€individual€shareholder€of€a€foreign€S€corporation€(i.e.,€an€S€corporation€that€is€not€incorporatedÐ Ä ` Ðin€New€York€State)€that€does€business€in€New€York€State,€or€an€S€corporation€incorporated€in€New€York€State,Ð œ8  Ðeither€of€which€can€make€the€election€provided€for€by€section€660(a)€of€the€Tax€Law€but€does€not,€is€not€subject€toÐ t  Ðthe€provisions€of€this€subdivision.€The€shareholder€would€be€required€to€make€the€modification€[referred€to€inÐ Lè  Ðsection€115.2€of€this€Part]€òòrequired€by€section€615(c)(6)€of€the€Tax€Lawóó.€Ð $À Ðà ° à(3)€In€the€case€of€a€New€York€S€termination€year€(see€section€208.1-A€of€the€Tax€Law),€the€amount€of€theÐ ü˜ Ðmodifications€referred€to€in€paragraphs€(1)€and€(2)€of€this€subdivision€must€be€determined€in€accordance€with€theÐ Ôp Ðprovisions€of€òòsection€612(s)€of€the€Tax€Law€andóó€section€112.12€of€this€Part.Ð ¬H ÐÌÓÓDated:à0 ° àAlbany,€New€YorkÐ\ø°€%°€% Ðà ° àFebruary€24,€2004Ð Hä ÐÌÌÌà0 ° àà0°€%°€%àà0` €%€%àà0¸ ` €%` €%àà0¸ €%¸ €%àà h àà À à___________________________________Ðø"”€%€% Ðà0 ° àà0°€%°€%àà0` €%€%àà0¸ ` €%` €%àà0¸ €%¸ €%àà h àà À àBarbara€G.€BilletÐä#€ €%€% Ðà ° àà  àà ` àà ¸ àà  àà h àà À àExecutive€Deputy€Commissioner€Ð Ð$l! Ðà ° àà  àà ` àà ¸ àà  àà h àà À àof€Taxation€and€Finance