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This entry was published on 2019-04-19
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SECTION 619
Share of a resident estate, trust or beneficiary in New York fiduciary adjustment
Tax (TAX) CHAPTER 60, ARTICLE 22, PART 2
§ 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 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.