N.Y. GCT Law § 19

§ 19. Share of a resident estate, trust or beneficiary in city\nfiduciary adjustment.--(a) General.--An adjustment shall be made in\ndetermining city taxable income of a resident estate or trust under\nsection eighteen, or city adjusted gross income of a resident\nbeneficiary of any estate or trust under subdivision (d) of section\ntwelve, in the amount of the share of each in the city fiduciary\nadjustment as determined in this section.\n (b) Definition.--The city fiduciary adjustment shall be the net amount\nof the modifications described in section twelve (including subdivision\n(d) if the estate or trust is a beneficiary of another estate or trust),\nand in subdivision (c) and paragraphs two and three of subdivision (d)\nof section fifteen, which relate to items of income, gain, loss or\ndeduction of an estate or trust. The net amount of such modifications\nshall not include any modification described in paragraph nine of\nsubsection (c) of section twelve with respect to gains from the sale or\nother disposition of property, to the extent such gains are excluded\nfrom federal distributable net income of the estate or trust.\n (c) Shares of city fiduciary adjustments.--(1) The respective shares\nof an estate or trust and its beneficiaries (including, solely for the\npurpose of this allocation, nonresident beneficiaries) in the city\nfiduciary adjustment shall be in proportion to their respective shares\nof federal distributable net income of the estate or trust.\n (2) If the estate or trust has no federal distributable net income for\nthe taxable years, the share of each beneficiary in the city fiduciary\nadjustment shall be in proportion to his share of the estate or trust\nincome for such year, under local law or the governing instrument, which\nis required to be distributed currently and any other amounts of such\nincome distributed in such year. Any balance of the city fiduciary\nadjustment shall be allocated to the estate or trust.\n (d) Alternate attribution of modifications.-- The administrator may by\nregulation establish such other method or methods of determining to whom\nthe items comprising the fiduciary adjustment shall be attributed, as\nmay be appropriate and equitable. Such method may be used by the\nfiduciary in his discretion whenever the allocation of the fiduciary\nadjustment pursuant to subdivision (c) would result in an inequity which\nis substantial both in amount and in relation to the amount of the\nfiduciary adjustment.\n