Section 109 - Unincorporated business exemptionsIn computing unincorporated business taxable income, there shall be allowed (without allocation under section one hundred seven):
(1) an unincorporated business exemption of five thousand dollars, prorated for taxable years of less than twelve months under regulations of the director of finance;(2) if a partner in an unincorporated business is taxable under this title or under any local law imposed pursuant to section one of the act authorizing the adoption of this title, an exemption for the amount of the partner's proportionate interest in the excess of the unincorporated business gross income over the deductions allowed under sections one hundred six and one hundred eight, but this exemption shall be limited to the amount which is included in the partner's unincorporated business taxable income allocable to the city, or included in a corporate partner's net income allocable to the city.N.Y. General City Model Law § 109