1. (a) Where an individual changes resident status during the taxable year, the amount of New York source income from compensation (see section 132.24[c][1] of this Title) received from stock options, stock appreciation rights or restricted stock, in the taxable year that such income is included in the individual's Federal adjusted gross income (as either ordinary income or capital gain income), is dependent on the individual's resident status at the time that the compensation is recognized for Federal income tax purposes.
2. (b) If the compensation is recognized during the resident period, the entire amount of compensation recognized for Federal income tax purposes is includable in New York source income. In the case of statutory stock options (Internal Revenue Code, sections 422 and 423), the entire amount of gain or loss recognized for Federal income tax purposes (both the compensation element and any appreciation in the value of the stock after the exercise date) is includable in New York source income.
3. (c) If the compensation is recognized during the nonresident period, the amount includable in New York source income is determined using the allocation methods described in section 132.24 of this Title.

Tax Law, section 638(c)