New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter II - Income Taxes and Estate Taxes
Subchapter F - New York City Earnings Tax On Nonresidents
Part 295 - Imposition Of The New York City Earnings Tax On Nonresidents
Section 295.4 - Persons subject to tax

(1) Partnerships and partners (including Subchapter K limited liability companies and their members). In accordance with the provisions of section 11-1902(a) (and section 11-1901[n]) of the Administrative Code of the City of New York, a partnership (including a Subchapter K limited liability company) is not subject to the New York City earnings tax on nonresidents, but a partner (including a member of a Subchapter K limited liability company) that is an individual, estate or trust is subject to the tax in the partner's separate or individual capacity on the partner's distributive share of partnership net earnings from self-employment. However, see section 158.9 of this Title (as referenced in section 297.9 of this Title) as to the filing of information returns by partnerships doing business in the City of New York.

(2) Earnings tax on wages. The wages subject to tax under section 11-1902(a) of the Administrative Code of the City of New York may not be offset by a loss with respect to self-employment activities. (Also see paragraph (b)(1) in this section.)

(1) Net losses from self-employment. Should a taxpayer have wages subject to tax under section 11-1902(a) of the Administrative Code of the City of New York and also have a net loss attributable to self-employment within the City of New York while not a resident of the City of New York, the exclusion allowable under section 11-1902(b) of the code shall be computed based only on the wages, with no offset allowed for the net loss from self-employment. (Also see paragraph [a][2] in this section.)

(2) Taxable periods of less than one year (Administrative Code of the City of New York, §§ 11-1902[b][3] and 11-1905[b]). Where any taxpayer, not a resident of New York City has a taxable year of less than 12 months, as a result of either (i) a change in the taxpayer's accounting period for Federal income tax purposes or (ii) the taxpayer's otherwise having a taxable year for Federal income tax purposes of less than one year, the exclusion allowable under section 11-1902(b) of the Administrative Code of the City of New York shall be prorated for the short period. That is, the exclusion will equal the amount which bears the same ratio to the full amount of the exclusion as the number of months in the short period bears to 12 months. A fractional part of a month will be disregarded for this purpose unless it amounts to more than one-half month, in which case it will be considered to be a full month.

(3) Changes of residence (Administrative Code of the City of New York, § 11- 1919[d]). Where a taxpayer changes residence to or from New York City during the taxable year, the exclusion allowable under section 11-1902(b) of the Administrative Code of the City of New York shall be prorated according to the number of months of the taxable year during which the taxpayer was not a resident of New York City. That is, the exclusion will equal the amount which bears the same ratio to the full amount of the exclusion as the number of months of New York City nonresidency bears to 12 months. A fractional part of a month will be disregarded for this purpose unless it amounts to more than one-half month, in which case it will be considered to be a full month.