N.Y. General City Law art. 2-D, § 19: Share of a resident estate, trust or beneficiary in city fiduciary adjustment

§ 19. Share of a resident estate, trust or beneficiary in city

fiduciary adjustment.--(a) General.--An adjustment shall be made in

determining city taxable income of a resident estate or trust under

section eighteen, or city adjusted gross income of a resident

beneficiary of any estate or trust under subdivision (d) of section

twelve, 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 twelve (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 fifteen, which relate to items of income, gain, loss or

deduction of an estate or trust. The net amount of such modifications

shall not include any modification described in paragraph nine of

subsection (c) of section 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 city fiduciary adjustments.--(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 years, the share of each beneficiary in the city 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 city fiduciary

adjustment shall be allocated to the estate or trust.

(d) Alternate attribution of modifications.-- The administrator 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 subdivision (c) would result in an inequity which

is substantial both in amount and in relation to the amount of the

fiduciary adjustment.