USA NY State tax treatment of Accrued Market Discount for US Treasury Note

[Ryan1]

First, thank you for taking a look at this question, I appreciate your interest in helping.

But I ask that you please do not respond unless you are an expert and sure of your response since uncertain responses only create more confusion. I have seen very long and confused responses to this question all over the net which I know to be incorrect since they demonstrate a poor understanding of the topic. So I appreciate any useful response but ask that you please refrain from commenting unless you have the expertise and experience to tackle this very specific question. I am looking for an expert who can provide a concise and accurate answer. Thank you.

Here is the subject case:

1) A US Treasury Note is purchased on the secondary market at a discount.

2) The Note is held to maturity and then redeemed.

3) The amount of the accrued market discount (Box 1f reported on 1099-B for TY23) is determined to be interest for income tax purposes.

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The Question: Is this interest from the accrued market discount exempt from NY State income tax?

Important note to avoid any misunderstandings:
This is NOT a question about the interest from the Note reported on Form 1099-INT which IS NY State tax exempt. It is a question about the interest reported on form 1099-B as Accrued Market Discount.
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Thank you for any definitive answer and if a citation can be provided that would also be appreciated.

 

[Ryan1]

I can see why there hasn't been any response to this. Incredibly, it appears to be a question without a clear answer. I am shocked that seems to be the case but have not found any credible answer to it anywhere. It is not such an uncommon situation. You would think that for any professional the answer to this would be a slam dunk. But apparently not.

 

[Samir]

You wanted an expert to give you an answer they are usually paid for, that's why.