§ 19. Share of a resident estate, trust or beneficiary in city
fiduciary adjustment.--(a) General.--An adjustment shall be made in
determining city taxable income of a resident estate or trust under
section eighteen, or city adjusted gross income of a resident
beneficiary of any estate or trust under subdivision (d) of section
twelve, in the amount of the share of each in the city fiduciary
adjustment as determined in this section.

(b) Definition.--The city fiduciary adjustment shall be the net amount
of the modifications described in section twelve (including subdivision
(d) if the estate or trust is a beneficiary of another estate or trust),
and in subdivision (c) and paragraphs two and three of subdivision (d)
of section fifteen, which relate to items of income, gain, loss or
deduction of an estate or trust. The net amount of such modifications
shall not include any modification described in paragraph nine of
subsection (c) of section twelve with respect to gains from the sale or
other disposition of property, to the extent such gains are excluded
from federal distributable net income of the estate or trust.

(c) Shares of city fiduciary adjustments.--(1) The respective shares
of an estate or trust and its beneficiaries (including, solely for the
purpose of this allocation, nonresident beneficiaries) in the city
fiduciary adjustment shall be in proportion to their respective shares
of federal distributable net income of the estate or trust.

(2) If the estate or trust has no federal distributable net income for
the taxable years, the share of each beneficiary in the city fiduciary
adjustment shall be in proportion to his share of the estate or trust
income for such year, under local law or the governing instrument, which
is required to be distributed currently and any other amounts of such
income distributed in such year. Any balance of the city fiduciary
adjustment shall be allocated to the estate or trust.

(d) Alternate attribution of modifications.-- The administrator may by
regulation establish such other method or methods of determining to whom
the items comprising the fiduciary adjustment shall be attributed, as
may be appropriate and equitable. Such method may be used by the
fiduciary in his discretion whenever the allocation of the fiduciary
adjustment pursuant to subdivision (c) would result in an inequity which
is substantial both in amount and in relation to the amount of the
fiduciary adjustment.