138.1 New York taxable income of a nonresident estate or trust.

Tax Law, § 638 The New York taxable income of a nonresident estate or trust is its Federal taxable income, as defined by the Internal Revenue Code for the taxable year, to the extent derived from or connected with New York State sources, subject to the applicable New York modifications and New York personal exemption in lieu of the Federal exemption. Subject to the applicable New York modifications and New York personal exemption, the New York taxable income of a nonresident estate or trust includes its share of its Federal distributable net income and, in addition thereto, any other items of income, gain, loss or deduction of the estate or trust recognized for Federal income tax purposes but not included in Federal distributable net income, to the extent that such share and any other items are derived from or connected with New York State sources. The New York taxable income of a nonresident estate or trust is subject to the ordinary tax plus a tax surcharge (for years in effect) at the rates prescribed, respectively, in sections 602 and 601-B of the Tax Law. For taxable years beginning on or after January 1, 1978, if a nonresident 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 nonresident estate or trust is determined as described in Part 141 of this Article, the New York State separate tax of a nonresident 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 separate tax of a nonresident estate or trust on the ordinary income portion of a lump sum distribution is determined as described in Part 142 of this Article. See sections 106.1, 106.4, 106.6 and 106.8 of this Title and Part 140 of this Article for credits against the taxes imposed on a nonresident estate or trust. For the definition of a nonresident estate or trust, see section 105.24 of this Title.