§ 11-1719 Share of a resident estate, trust or beneficiary in city fiduciary adjustment.
AC § 11-1719
(a)General. An adjustment shall be made in determining city taxable income of a city resident estate or trust under section 11-1718, or city adjusted gross income of a city resident beneficiary of any estate or trust under subdivision (d) of section 11-1712, in the amount of the share of each in the city fiduciary adjustment as determined in this section.
(b)Definition. The city fiduciary adjustment shall be the net amount of the modifications described in section 11-1712 (including subdivision (d) if the estate or trust is a beneficiary of another estate or trust), and in subdivision (c) and paragraphs two and three of subdivision (d) of section 11-1715, and in subdivision (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 one and two of subdivision (b) and paragraphs one, two, four, five, six, and seven of subdivision (c) of section 11-1712 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 four or five of subdivision (c) of section 11-1712, 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 city 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 city 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 city fiduciary adjustment shall be in proportion to his or her 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 city 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 or her discretion whenever the allocation of the fiduciary adjustment pursuant to subdivision (c) of this section would result in an inequity which is substantial both in amount and in relation to the amount of the fiduciary adjustment.
(e)Additional modifications.
(3)For any taxable year, there shall be added the amount of any deduction allowed pursuant to section 199A of the internal revenue code. (Am. 2019 N.Y. Laws Ch. 59, 4/12/2019, eff. 4/12/2019)
