Yes, according to this link from New York state:
A New York S corporation in which you are a shareholder, including:
- any gain recognized on the receipt of payments from an installment obligation for federal income tax purposes where the S corporation has distributed an installment obligation under IRC section 453(h)(1)(A) to the shareholders;
- any gain recognized on the deemed asset sale for federal income tax purposes where the S corporation has made an election under IRC section 338(h)(10); and
- any income or gain recognized on the receipt of payments from an installment sale contract entered into when the S corporation was subject to tax in New York in a case where the S corporation terminates its taxable status in New York (see TSB-M-10(10)I, Amendments to the Treatment of Certain S Corporation Income by Nonresident Taxpayers).
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