(1)In the case of a shareholder of an S corporation:#
(1) In the case of a shareholder of an S corporation:
(i) where the election to be treated as a New York S corporation under section 660(a) of the Tax Law is in effect with respect to such corporation, an amount equal to such shareholder's pro rata share of the S corporation's reductions for taxes under section 1366(f)(2) and (3) of the Internal Revenue Code, relating to the tax imposed on recognized built-in gains and to the tax imposed on excess net passive income;
(ii) in the case of an S termination year, subparagraph (i) of this paragraph shall apply to the reductions for taxes as determined in accordance with section 612(s) of the Tax Law (see section 112.12 of this Part).
(1)(i)where the election to be treated as a New York S corporation under section 660(a) of the Tax Law is in effect with respect to such corporation, an amount equal to such shareholder's pro rata share of the S corporation's reductions for taxes#
(i) where the election to be treated as a New York S corporation under section 660(a) of the Tax Law is in effect with respect to such corporation, an amount equal to such shareholder's pro rata share of the S corporation's reductions for taxes under section 1366(f)(2) and (3) of the Internal Revenue Code, relating to the tax imposed on recognized built-in gains and to the tax imposed on excess net passive income;
(1)(ii)in the case of an S termination year, subparagraph (i) of this paragraph shall apply to the reductions for taxes as determined in accordance with section 612(s) of the Tax Law (see section 112.12 of this Part).
(2)The amounts referred to in paragraph (1) of this subdivision must be added to Federal adjusted gross income in determining New York adjusted gross income in accordance with section 612(b)(18) of the Tax Law.#
(2) The amounts referred to in paragraph (1) of this subdivision must be added to Federal adjusted gross income in determining New York adjusted gross income in accordance with section 612(b)(18) of the Tax Law.