N.Y. Comp. Codes R. & Regs. tit. 20 § 112.4
Tax Law, § 612(d)
Where a resident individual is a beneficiary of an estate or trust, such individual's Federal adjusted gross income must be increased or decreased (as the case may be) by such individual's share of the New York fiduciary adjustment applicable to the estate or trust. This fiduciary adjustment is the net amount of modifications relating to estate or trust items of income, gain, loss or deduction, and is computed by the fiduciary in such fiduciary's New York State personal income tax return for the estate or trust. The fiduciary also allocates to each beneficiary such beneficiary's proportionate share of this fiduciary adjustment (see Part 119 of this Article). Each beneficiary, on such beneficiary's individual New York State personal income tax return, must apply such beneficiary's share of the fiduciary adjustment as a modification of such beneficiary's Federal adjusted gross income in order to determine such beneficiary's New York adjusted gross income.
N.Y. Comp. Codes R. & Regs. Tit. 20 § 112.4