In the case of a shareholder of an S corporation:
(1) In the case of a shareholder of an S corporation:
(i)#
(i)
(a) Where the election to be treated as a New York S corporation under section 660(a) of the Tax Law has not been made with respect to such corporation, any item of loss or deduction of the S corporation included in Federal gross income pursuant to section 1366 of the Internal Revenue Code.
(b) Exception. A resident shareholder of an S corporation that cannot make the election provided for under section 660(a) of the Tax Law ( e.g., a foreign S corporation [ i.e., an S corporation that is not incorporated in New York State] that does not do business in New York State or an S corporation that is taxed under article 9 of the Tax Law), is not required to make the modification referred to in this paragraph.
(i)(a)Where the election to be treated as a New York S corporation under section 660(a) of the Tax Law has not been made with respect to such corporation, any item of loss or deduction of the S corporation included in Federal gross income pursuan#
(a) Where the election to be treated as a New York S corporation under section 660(a) of the Tax Law has not been made with respect to such corporation, any item of loss or deduction of the S corporation included in Federal gross income pursuant to section 1366 of the Internal Revenue Code.
(i)(b)Exception.#
(b) Exception. A resident shareholder of an S corporation that cannot make the election provided for under section 660(a) of the Tax Law ( e.g., a foreign S corporation [ i.e., an S corporation that is not incorporated in New York State] that does not do business in New York State or an S corporation that is taxed under article 9 of the Tax Law), is not required to make the modification referred to in this paragraph.
(ii)In the case of an S termination year, subparagraph (i) of this paragraph shall apply to the amounts of loss or deduction determined under section 612(s) of the Tax Law (see section 112.12 of this Part).#
(ii) In the case of an S termination year, subparagraph (i) of this paragraph shall apply to the amounts of loss or deduction determined under section 612(s) of the Tax Law (see section 112.12 of this Part).