The Appellate Division has confirmed the decision of the Tax Appeals Tribunal that, under New York law, a taxpayer’s personal deductions, including those for gambling losses, were reduced by 25% in 2003, since her adjusted gross income exceeded $150,000, and by 50% in 2004, when her adjusted gross income exceeded $525,000. Matter of Kathleen Karlsberg v. Tax App. Trib., No. 509668 (3d Dep’t June 9, 2011). Although the limitations on itemized deductions produced a New York State tax liability that exceeded the taxpayer’s entire amount of nongambling income, the court held that this result was mandated by the statute. The court rejected the arguments based on federal conformity, noting that, while New York does generally conform to federal treatment of similar issues, here Tax Law § 615(f) explicitly reduces all itemized deductions based on AGI, and does not follow the federal exemption for treatment of gambling losses.