N.Y.
Tax Law Section 619
Share of a resident estate, trust or beneficiary in New York fiduciary adjustment
(a)
General. An adjustment shall be made in determining New York taxable income of a resident estate or trust under section six hundred eighteen, or New York adjusted gross income of a resident beneficiary of any estate or trust under subsection (d) of section six hundred twelve, in the amount of the share of each in the New York fiduciary adjustment as determined in this section.(b)
Definition. The New York fiduciary adjustment shall be the net amount of the modifications described in section six hundred twelve (including subsection (d) if the estate or trust is a beneficiary of another estate or trust), in subsection (c) and paragraphs (2) and (3) of subsection (d) of section six hundred fifteen, and in subsection (e) of this section, which relate to items of income, gain, loss or deduction of an estate or trust. The net amount of such modifications shall not include:(1)
Any modification described in paragraphs (1) and (2) of subsection (b) and paragraphs (1), (2), (4), (5), (6) and (7) of subsection (c) of section six hundred twelve with respect to any amount which, pursuant to the terms of the governing instrument, is paid or permanently set aside for a charitable purpose during the taxable year, and(2)
Any modification described in paragraph (4) or (5) of subsection (c) of section six hundred twelve, with respect to gains from the sale or other disposition of property, to the extent such gains are excluded from federal distributable net income of the estate or trust.(c)
Shares of New York fiduciary adjustment.(1)
The respective shares of an estate or trust and its beneficiaries (including, solely for the purpose of this allocation, nonresident beneficiaries) in the New York fiduciary adjustment shall be in proportion to their respective shares of federal distributable net income of the estate or trust.(2)
If the estate or trust has no federal distributable net income for the taxable year, the share of each beneficiary in the New York fiduciary adjustment shall be in proportion to his share of the estate or trust income for such year, under local law or the governing instrument, which is required to be distributed currently and any other amounts of such income distributed in such year. Any balance of the New York fiduciary adjustment shall be allocated to the estate or trust.(d)
Alternate attribution of modifications. The tax commission may by regulation establish such other method or methods of determining to whom the items comprising the fiduciary adjustment shall be attributed, as may be appropriate and equitable. Such method may be used by the fiduciary in his discretion whenever the allocation of the fiduciary adjustment pursuant to subsection (c) would result in an inequity which is substantial both in amount and in relation to the amount of the fiduciary adjustment.(e)
Additional modifications.(1)
For any taxable year beginning after December thirty-first, two thousand seventeen, and before January first, two thousand twenty-six, to the extent that the estate or trust claimed a deduction for taxes under section 164 of the internal revenue code that was limited to ten thousand dollars as provided in section 164(b)(6)(B) or was denied as a result of section 164(b)(6)(A), there shall be subtracted the taxes paid or accrued in that taxable year by an estate or trust that the estate or trust was not able to deduct for federal income tax purposes because of such limitation or denial, other than state and local sales taxes and income taxes described in paragraph one of subsection (c) of § 615 (New York itemized deduction of a resident individual)section six hundred fifteen of this part. In determining the makeup of the ten thousand dollars of deduction claimed by the estate or trust under section 164 of the internal revenue code, it shall be presumed that the ten thousand dollars of deduction first comprises the state and local sales taxes or income taxes the estate or trust accrued or paid during the taxable year.(2)
For any taxable year beginning after December thirty-first, two thousand seventeen, and before January first, two thousand twenty-six, there shall be subtracted the miscellaneous itemized deductions as described in and limited by section 67 of the internal revenue code (but excluding the deductions described in subsection (e) of section 67), but determined without regard to subsection (g) of such section.(3)
For any taxable year, there shall be added the amount of any deduction allowed pursuant to section 199A of the internal revenue code.
Source:
Section 619 — Share of a resident estate, trust or beneficiary in New York fiduciary adjustment, https://www.nysenate.gov/legislation/laws/TAX/619 (updated Apr. 19, 2019; accessed Dec. 21, 2024).
