N.Y.
Tax Law Section 634
Share of a nonresident beneficiary in income from New York sources
(a)
General. The share of a nonresident beneficiary of any estate or trust under subsection (a) of section six hundred thirty-one, in estate or trust income, gain, loss and deduction from New York sources shall be determined as follows:(1)
Items of distributable net income from New York sources. There shall be determined the items of income, gain, loss and deduction, derived from or connected with New York sources, which enter into the definition of federal distributable net income of the estate or trust for the taxable year (including such items from another estate or trust of which the first estate or trust is a beneficiary). Such determination of source shall be made in accordance with the applicable rules of section six hundred thirty-one as in the case of a nonresident individual.(2)
Addition or subtraction of modifications. There shall be added or subtracted (as the case may be) the modifications described in section six hundred eighteen, to the extent relating to the items of income, gain, loss and deduction derived from or connected with New York sources as determined under paragraph one of this subsection. No modification shall be made under this subsection which has the effect of duplicating an item already reflected in the definition of federal distributable net income.(3)
Allocation among beneficiaries. (A) The amounts determined under paragraphs one and two shall be allocated among the beneficiaries (and including, solely for the purpose of this allocation, among the estate or trust and resident beneficiaries) in proportion to their respective shares of federal distributable net income. (B) The amounts so allocated shall have the same character under this article as for federal income tax purposes. Where an item entering into the computation of such amounts is not characterized for federal income tax purposes, it shall have the same character as if realized directly from the source from which realized by the estate or trust, or incurred in the same manner as incurred by the estate or trust.(b)
Alternate methods of determining shares.(1)
If the estate or trust has no federal distributable net income for the taxable year, the share of each beneficiary (including, solely for the purpose of this allocation, resident beneficiaries) in the net amount determined under paragraphs one and two of subsection (a) shall be in proportion to the beneficiary’s 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 such net amount shall be allocated to the estate or trust.(2)
The commissioner may by regulation establish such other method or methods of determining the respective shares of the beneficiaries and of the estate or trust in its income derived from New York sources, and in the modifications related thereto, as may be appropriate and equitable. Such method may be used by the fiduciary in his discretion whenever the allocation of such respective shares under subsection (a) or paragraph one of subsection (b) would result in an inequity which is substantial both in amount and in relation to the total amount of the modifications referred to in paragraph two of subsection (a).
Source:
Section 634 — Share of a nonresident beneficiary in income from New York sources, https://www.nysenate.gov/legislation/laws/TAX/634 (updated Sep. 22, 2014; accessed Oct. 26, 2024).
