I received a NY Schedule K1 equivalent resulting from the income tax on my mother's estate. She was a NYS resident, but neither I nor the other trustees/beneficiaries are. There was no NYS taxable income in the estate for the beneficiaries.
However, we all have to file NYS (non-resident) income tax returns this year because of the gain on the sale of a house by one of my mother's trusts.
On the NY K1 for the estate, there is an item under "NONRESIDENT BENEFICIARY INFORMATION" Line 8E "Other Deductions". The instructions indicate that the items on lines 8A-8F should go into column(b) of the IT-203 lines 1-18.
Examining the actual NYS estate tax return, it seems that the amount on 8E is my proportionate share of something called "Shares of New York fiduciary adjustment"
It seems to me, from the instructions for IT-203 (P26), that I should ignore this amount since it does not "relate to income, loss, or deduction derived from or connected with New York State sources" even though I have to file IT-203 because of income from one of my mother's trusts.
Is this the case? Or am I mis-interpreting something?
Thanks.