General.

(1) The New York taxable income of a resident estate or trust is its Federal taxable income, as defined by the Internal Revenue Code for the taxable year, subject to the modifications explained in sections 118.2 through 118.5 of this Part. The New York taxable income of a resident estate or trust is subject to the ordinary tax at the rates prescribed in section 602 of the Tax Law, plus a tax surcharge at the rate and for the years in effect prescribed in section 601-B of the Tax Law. For taxable years beginning on or after January 1, 1978, if a resident estate or trust has New York personal service taxable income and otherwise meets the requirements of section 603-A of the Tax Law, such estate or trust must compute its maximum tax in accordance with the provisions of such section in lieu of computing the ordinary tax on its New York taxable income. The New York State minimum taxable income of a resident estate or trust is determined as described in Part 122 of this Article, the New York State separate tax of a resident estate or trust on the termination of a qualified higher education fund is determined as described in section 601-D of the Tax Law and the New York State separate tax of a resident estate or trust on the ordinary income portion of lump sum distributions is determined as described in Part 124 of this Article.

(2) See sections 106.1, 106.4, 106.6 and 106.8 of this Title and Parts 120 and 121 of this Article for credits against the taxes imposed on a resident estate or trust.