New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter II - Income Taxes and Estate Taxes › Subchapter A - New York State Personal Income Tax Under Article 22 Of The Tax Law › Article 3 - Nonresidents › Part 139 - Share Of A Nonresident Estate, Trust Or Beneficiary In Income From New York State Sources › Section 139.4 - Allocation of distributable net income from New York State sources and modifications (net change)

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 639(a)(3)(A)
(a)
General rule.
The distributable net income of a nonresident estate or
						trust from New York State sources must be allocated among the estate or trust
						and its beneficiaries (including, solely for the purpose of this allocation,
						resident beneficiaries) in proportion to their respective shares of Federal
						distributable net income. The share of the estate or trust in Federal
						distributable net income is the amount, if any, by which the Federal
						distributable net income exceeds the aggregate of the shares therein of all its
						beneficiaries. The net change computed pursuant to section
						139.3  of
						this Part must be allocated among the estate or trust and its beneficiaries in
						the same manner.
(b)
Special rule where an estate or trust has no Federal distributable net
					 income.
[Tax Law, § 639(b)(1)] If an 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 items derived from or connected with New York State
						sources which enter into the definition of
Federal distributable net
						income
determined under section
						139.2 
						of this Part, and in the net change determined under section
						139.3  of
						this Part, must 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 which are properly paid or
						credited or required to be distributed during the taxable year. Any balance of
						such net change must be allocated to the estate or trust.
(c)
Alternate method of attributing
					 modifications among an estate or trust and its beneficiaries.
[Tax Law, § 639(b)(2)] A fiduciary may, under the rules
						provided for under section
						119.3 
						of this Title, use the same alternate method provided for in that section to
						attribute the modifications relating to the share of a nonresident estate,
						trust or beneficiary in income derived from or connected with New York State
						sources among the estate or trust and its beneficiaries. However, those
						applicable New York modifications, or portions thereof, which are allocated to
						the nonresident estate or trust under section
						138.4 
						of this Article must be attributed to such estate or trust in determining its
						New York taxable income regardless of whether the alternate method provided by
						section
						119.3 
						of this Title is used by the fiduciary.