§ 639. Accruals upon change of residence. (a) If an individual changes
status from resident to nonresident he shall, regardless of his method
of accounting, accrue to the period of residence any items of income,
gain, loss, deduction, or ordinary income portion of a lump sum
distribution accruing prior to the change of status, with the applicable
modifications and adjustments to federal adjusted gross income and
itemized deductions under sections six hundred twelve and six hundred
fifteen, if not otherwise properly includible or allowable for New York
income tax purposes for such period or a prior taxable year under his
method of accounting.

(b) If an individual changes status from nonresident to resident he
shall, regardless of his method of accounting, accrue to the period of
nonresidence any items of income, gain, loss or deduction, or ordinary
income portion of a lump sum distribution accruing prior to the change
of status, with the applicable modifications and adjustments to federal
adjusted gross income and itemized deductions under sections six hundred
twelve and six hundred fifteen, other than items derived from or
connected with New York sources, if not otherwise properly includible or
allowable for New York income tax purposes for such period or for a
prior taxable year under his method of accounting.

(c) No item of income, gain, loss, deduction, ordinary income portion
of a lump sum distribution or modification or adjustment which is
accrued under this section shall be taken into account in determining
the tax under this article for any subsequent taxable year.

(d) The accruals under this section shall not be required if the
individual files with the commissioner a bond or other security
acceptable to the commissioner, on condition that the amounts accruable
under this section are taken into account in determining the tax under
this article for one or more subsequent taxable years as if the
individual had not changed his resident status.

(e) The foregoing provisions of this section shall apply if an
individual changes his or her status from a resident to nonresident or
from a nonresident to resident during a taxable year, or at the
beginning of a taxable year, as a result of a change of domicile or as a
result of becoming a resident or nonresident based on the definition
contained in subsection (b) of section six hundred five of this article.

(f) Except as hereinafter provided, where an individual who is a
member of a partnership or a shareholder of an S corporation changes
status from resident to nonresident, or from nonresident to resident,
the portion of the distributive or pro rata share of income, gain and
loss (less deductions attributable thereto) from a partnership or S
corporation shall be allocated to the resident and nonresident periods
of the partner or shareholder on a proportionate basis throughout the
taxable year of the partnership or S corporation. In such event, the
portion of the distributive or pro rata share allocated to the period of
residency shall be determined based on the number of days of residency
within the reporting period of the partnership or S corporation over the
total number of days in the reporting period of the partnership or S
corporation. Provided, however, that the commissioner may require, or
the individual may elect, to accrue to the period of residence, and the
period of nonresidence, the portion of the distributive or pro rata
share of partnership or S corporation income, gain and loss (less
deductions attributable thereto) accruing during the individual's
respective resident and nonresident periods in a manner that reflects
the date of accrual of said income, gain and loss by the partnership or
S corporation.

(g) Except as hereinafter provided, where an individual who is
beneficiary of an estate or trust changes status from resident to
nonresident, or from nonresident to resident, the portion of any estate
or trust income credited, distributable, payable or required to be
distributed to such beneficiary shall be allocated to the resident and
nonresident periods of the beneficiary on a proportionate basis
throughout the taxable year of the estate or trust. In such event, the
portion of such estate or trust income allocated to the period of
residency shall be determined based on the number of days of residency
within the reporting period of the estate or trust. Provided, however,
that the commissioner may require, or the beneficiary may elect, to
accrue to the period of residence, and the period of nonresidence, the
portion of such estate or trust income accruing during the beneficiary's
respective resident and nonresident periods in a manner that reflects
the date of accrual of said estate or trust income by the estate or
trust.

(h) If a trust changes its status from resident to nonresident or from
nonresident to resident, the provisions of subsections (a) through (f)
of this section shall apply except that the term "individual" shall be
read as "trust" and reference to "modifications" shall mean those
modifications described in section six hundred eighteen.