Fprm Tsb-M-10(5)i - Filing Requirement For Resident Trusts Not Subject To Tax - New York State Department Of Taxation And Finance

ADVERTISEMENT

New York State Department of Taxation and Finance
TSB-M-10(5)I
Office of Tax Policy Analysis
Income Tax
Taxpayer Guidance Division
July 23, 2010
Filing Requirement for Resident Trusts Not Subject to Tax
Generally, a resident trust is required to file a New York State fiduciary income tax return
if it meets the filing requirements for resident trusts. However, under the policy described in
TSB-M-96(1)I, Resident Trusts, a resident trust that was not subject to tax because it met the
conditions described in section 605(b)(3)(D) of the Tax Law was not required to file a return (see
Background below).
Effective for tax years beginning on or after January 1, 2010, the policy in TSB-M-96(1)I
is revoked, and a resident trust that meets the conditions of section 605(b)(3)(D) of the Tax Law
will be required to file a New York State fiduciary income tax return if it meets the filing
requirements for resident trusts. See Filing requirements for resident trusts on page 2.
Background
In general, a resident trust is subject to New York tax if it has any New York taxable
income for the tax year. Under New York State Tax Law, a resident trust is:
• a trust created by the will of a decedent who was domiciled in New York State at the
time of his or her death;
• an irrevocable trust that consists of property of a person domiciled in New York State
when the property was transferred to the trust;
• a revocable trust consisting of property of a person domiciled in New York State at the
time the property was transferred to the trust if it has not later become irrevocable; or
• a revocable trust that has later become irrevocable if the trust consists of property of a
person domiciled in New York State when it becomes irrevocable.
Note: The resident status of the fiduciary does not affect the resident status of a trust.
However, section 605(b)(3)(D) of the Tax Law provides that a resident trust is not
subject to New York State personal income tax if all of the following conditions are met:
• All the trustees are domiciled in a state other than New York.
• The entire corpus of the trust, including real and tangible personal property, is located
outside of New York State.
• All income and gains of the trust are derived from or connected with sources outside of
New York State, determined as if the trust were a nonresident trust.
W A Harriman Campus, Albany NY 12227

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial
Go
Page of 2