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payee, equals or exceeds $1,000 in a calendar year. Any such corporation may make returns through its fiscal or paying agent. In case the payee is known to be a nonresident of the State no return need be made in respect of him. If the residence of the payee is not known to the corporation or its fiscal or paying agent, it need report only such payments as are made to payees with registered addresses within the State.

Fiscal or other paying agents of (a) States, (b) municipal corporations or political subdivisions of States, (c) foreign governments, or (d) unregistered foreign corporations, are not required to make returns of interest payments.

ART. 288. Return of information as to payment of dividends.When directed by the State Comptroller, either specially or by general regulation, every domestic or registered foreign corporation shall render a return of its payments of dividends and distributions to resident stockholders, if the amount paid or distributed equals or exceeds $1,000 in a calendar year, for such period as may be specified, stating the name and address of each stockholder, the number and class of shares owned by him and the date and amount of each dividend paid him. If the residence of the payee is not known to the corporation, or its fiscal or paying agent, it need report only such payments as are made to payees with registered addresses within the State.

ART. 289. Payments of which no return of information is required. Payments of the following classes need not be reported on returns of information:

(a) Dividends (see article 288),

(b) Interest coupons payable to bearer (see article 287 for reports of payments of interest on registered bonds), (c) Income exempt from taxation under section 359, subdivision 2, of the Tax Law,

(d) Bills paid for merchandise, telegrams, telephone, freight, storage and similar charges,

(e) To employees for board and lodging while traveling in the course of their employment,

(f) Annuities representing the return of capital,

(g) Of rent, made to real estate agents (but the agent must report payments to the landlord if they equal or exceed $1,000 annually),

(h) To nonresident employees, for services rendered entirely without the State,

(i) To nonresidents, of annuities, including pensions, interest on bank deposits, interest on bonds or other interestbearing obligations or dividends,

(j) Fees for professional services, except retainers on an annual or periodical basis,

(k) To corporations, to partnerships and fiduciaries, and distributions by partnerships to partners and by fiduciaries to beneficiaries.

ART. 290. Information as to actual owner.-When the person receiving a payment or credit, with respect to which information at the source is required, is not the actual owner of the income received, the name and address of the actual owner shall be furnished upon demand of the State Comptroller, and in default of a compliance with such demand, the payee becomes liable to the penalties provided. (See subdivision 1, section 376, of the statute.)

NONRESIDENT SECTION

TAX ON NONRESIDENTS

ART. 401. Tax on nonresidents. In the case of a nonresident, the tax is imposed upon his entire net income from sources within the State; that is, (a) from all property owned and (b) from every business, trade, profession or occupation carried on in the State of New York. It is not imposed upon income arising from annuities, interest on bank deposits, interest on bonds, notes or other interest-bearing obligations or dividends from corporations, except to the extent to which the same shall be a part of the taxable income from any business, trade, profession or occupation carried on in. this State. (Tax Law, sections 351 and 359.) (See article 415.)

GROSS INCOME DEFINED

ART. 411. Gross income. With respect to every business, trade, profession or occupation carried on within the State of New York by a nonresident, the gross income therefrom is determined in the same manner as in the case of a resident, and includes and excludes the same elements. The articles in the resident section of these regulations under the titles of "Gross Income Defined: Inclusions," "Gross Income Defined: Exclusions" and "Gross Income Defined: Basis for Determining Gain or Loss," apply equally to nonresidents except as stated in the following articles, 412 to 419. A nonresident member of a partnership is taxable on his distributive share of that portion of the partnership profits which is derived from sources within the State. With respect to the apportionment of the income of a nonresident (or a partnership with a nonresident member) derived from sources both within and without the State, see articles 451-470.

ART. 412. Compensation for personal services. The gross income of a nonresident (not engaged in the practice of a trade, profession or occupation on his own account, but employed and receiving compensation for his services) includes compensation for personal services only if, and to the extent that, the services were rendered within the State of New York. Compensation for personal services rendered by a nonresident wholly without

the State is excluded from gross income regardless of the fact that payment may be made from a point within the State or that the employer is a resident individual, partnership or corporation. See articles 451 and 452 for apportionment of compensation for services rendered by a nonresident partly within and partly without the State.

ART. 413. Pensions received. When received by a nonresident, a pension of any kind is not taxable income as it is an annuity and, therefore, exempt from taxation against a nonresident. (See Tax Law, section 359, subdivision 3, and article 41.)

ART. 414. Gross income from business. In the case of a nonresident (other than one who is employed by another, as distinguished from doing business on his own account) gross income from a business, trade, profession or occupation is determined in the same manner as is the gross income of a resident, from a business, trade, profession or occupation, but includes only income from a business, trade, profession or occupation carried on within the State of New York. (See article 457.)

ART. 415. Definition of "business carried on" within the State. -A business, trade, profession or occupation (as distinguished from personal service as employee) is carried on within the State by a nonresident when he occupies, has, maintains or operates desk room, an office, a shop, a store, a warehouse, a factory, an agency or other place where his affairs are systematically and regularly carried on notwithstanding the occasional consummation of isolated transactions without the State. Business is being carried on if it is here with a fair measure of permanency and continuity. Its regularity or continuity need not be for a long period; the life of the business is not a material factor.

ART. 416. Sale of stocks, bonds and other securities.- Gains and profits of a nonresident from the sale, exchange or other disposition of stocks, bonds and other securities are not taxable and should not be included in gross income, except to the extent to which the same shall be a part of the income from a business carried on in the State of New York, even though the sale or other disposition thereof may have been made within the State of New York or consummated on an exchange located within such State. Likewise, losses sustained from the sale, exchange or other dis

position of stocks, bonds and other securities under like conditions are not deductible, except to the extent that they may be losses incurred in, because forming a part of a business carried on within the State.

ART. 417. Sale of property other than securities.- Gross income of a nonresident shall include all the profits derived from the sale, exchange or other disposition of real property located within the State of New York. It also includes all the profits derived from the sale, exchange or other disposition of personal property (other than stocks, bonds or other securities) having an actual situs within the State but not forming part of the assets of a business carried on within the State. Gross income from the sale, exchange or other disposition of real or personal property is determined in the same manner as gross income from similar sales by a resident. (See articles 34-39.)

ART. 418. Rents and royalties. The gross income of a nonresident from rents and royalties includes all rents and royalties received from property located within the State of New York and excludes all other rents and royalties. Such gross income is determined in the same manner as is the gross income of a resident from rents and royalties. (See articles 42 and 120.) Rent received by a nonresident for property located without the State is excluded from gross income regardless of the fact that payments may be made from a point within the State by a resident individual, partnership or corporation.

ART. 419. Interest and dividends. Except to the extent to which interest and dividend income shall be part of the taxable income from any business, trade, profession or occupation, carried on within the State of New York, a nonresident shall exclude interest and dividends from gross income.

DEDUCTIONS ALLOWED

ART. 431. Allowable deductions. In general, the deductions from gross income allowable to a nonresident are the same as allowed to a resident, except that they are allowed only if, and to the extent that, they are connected with income arising from sources within the State of New York, that is, in connection with property owned or with a business, trade, profession or occupation carried on within the State. (See article 457.) A taxpayer

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