- quote -

The NY IT-201 form starts out with the federal 1040 numbers,
including the Schedule D result where the sale would have
been shown if it were Federally reportable. As I recall you
said that the Section 121 exclusion applied, and that the
sale wouldn't even be reported. So it also would not be
reported on the NY forms.

There is a section on the NY form where differences between
Federal and NY are reported, such as interest on federal
debt, retirement exclusions, and differences between Federal
and NY depreciation allowances. There is a specific list of
differences in the instructions -- no mention is made of any
differences in the treatment of the Section 121 exclusion,
nor have I heard of any.

If you had reported a capital gain on the sale, you would
also find out that NY has no preferential rate for capital
gains -- all of your (NY) AGI is treated as ordinary income.

- quote -

Always a good idea.

--
Don EA in Upstate NY

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"DonTheCPA" <71034.2276[at]compuserve.com> wrote:
- quote -

What makes you think I'm NOT in NY? Born, raised, lived in
NYC all my life. But, without references handy I always
hedge. But I am virtually certain it is correct, since NYS
starts with federal AGI and there are no modifications for
this type of transaction.

--
Bruce E. Cobern, CPA
mailto:bec[at]pipeline.com

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"Bruce E. Cobern" <bec[at]pipeline.com> wrote:

- quote -

THANKS for your reply.
I assume you are not in N.Y.?

Are there not any participants in MTM that practice in N.Y.?
If not, I may actually have to research this one myself.

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"DonTheCPA" <71034.2276[at]compuserve.com> wrote:

- quote -

I believe NYS follows the federal rules in this area as to
both taxability and reporting.

--
Bruce E. Cobern, CPA
mailto:bec[at]pipeline.com

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I have a client who lives in Mamaroneck, NY, but works in NY
city.

Will sell his townhouse in October to move to another state
for a new job. Since he has owned & lived in the townhouse
in Mamaroneck for "ONLY" 20 months out of the 24 months
required for the entire federal $250,000 exclusion (single),
he will qualify for a reduced exclusion of only $208,333.
Not a problem, since anticipates that gain will only be
approx $100,000. He did previously sell a house, but it was
in 8-01 (more than two years before the sale of this
townhouse). Since his gain will be less than the "reduced"
exclusion, he still does not have to even report the sale on
his 2003 "FEDERAL" return.

QUESTION:

Does NY follow the same rules as Federal Re the "exclusion"
amount AND the "reporting requirements"?

Specifically, will ALL of the anticipated gain of $100,000
be EXCLUDED for NY state income tax purposes and does he
also NOT have to even report the sale on his NY state income
tax return if ALL of the gain is NOT taxable?

Plans to move to another state BEFORE the end of 2003, so he
will be a part-year resident of both states in 2003 - - -
"IF" that makes any difference to NY Re the sale of his
townhouse and the exclusion of the $100,000 gain.

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