NY Form IT-201 addition adjustment question

[FEDUKE404]

I've gotten into a verbal sparring match with someone (NOT a client) who received a 2009 K-1 from the estate of a decedent who died during 2008.

Accompanying the K-1 is a document making reference to NY Form IT 205-A Schedule 2, showing an entry for "share of fiduciary adjustment."

Apparently this number would move to line 23 (with a code of A-7) as an "addition" on NY Form IT-201. (So says a third-party NY CPA.)

BUT the NY instructions make reference that such an adjustment does not apply to deaths occurring after February 1, 2000. My own software threw up a similar potential red flag.

So is this offset likely a different adjustment, an adjustment that does not apply, or an error on the part of whoever prepared the IT 205 stuff in the first place???

Thanks!

FE

[BOB W]

I don't much about this, but I would go with the NYS instructions.

[New York Enrolled Agent]

I've gotten into a verbal sparring match with someone (NOT a client) who received a 2009 K-1 from the estate of a decedent who died during 2008.

Accompanying the K-1 is a document making reference to NY Form IT 205-A Schedule 2, showing an entry for "share of fiduciary adjustment."

Apparently this number would move to line 23 (with a code of A-7) as an "addition" on NY Form IT-201. (So says a third-party NY CPA.)

BUT the NY instructions make reference that such an adjustment does not apply to deaths occurring after February 1, 2000. My own software threw up a similar potential red flag.

So is this offset likely a different adjustment, an adjustment that does not apply, or an error on the part of whoever prepared the IT 205 stuff in the first place???

Why are you assuming it would be an addition using code A-7?

Fiduciary adjustments go on line 23 but are coded FA. A typical fiduciary adjustment would be for municipal bond interest that is non-NY municipal interest. This interest be an "add-on" to the beneficiaries as a fiduciary adjustment. A-7 is a very limited addition where there are different bases for property between federal and state.

I do not know all the facts but I would think you should add the adjustment on line 23 of the IT-201 and code it FA.

[FEDUKE404]

Coding issues & adjustments

Why are you assuming it would be an addition using code A-7?

Fiduciary adjustments go on line 23 but are coded FA. A typical fiduciary adjustment would be for municipal bond interest that is non-NY municipal interest. This interest be an "add-on" to the beneficiaries as a fiduciary adjustment. A-7 is a very limited addition where there are different bases for property between federal and state.

I do not know all the facts but I would think you should add the adjustment on line 23 of the IT-201 and code it FA.

The K-1 has already established at least eight categories of entries for the federal return, and includes both muni interest and a separate line entry for non-NY muni interest.

FWIW, the dollar amount of the aforementioned "adjustment" is roughly four times the amount of the other entries on the K-1. That's one heck of an adjustment!

The non-client has been told the amount was related to basis issues - hence my question about the 2000 date.

Also, per the instructions for line 23 of NY Form IT-210, I only saw codes A-1 through A-28 that could be used. I did not see any "FA" code listed. (Pages 65-68 of http://www.tax.state.ny.us/pdf/2009/..._201i_2009.pdf )

As I said before, I really do not have a dog in this hunt but was trying to provide some guidance for the person involved. NY is not my area of practice. Hence my original post.

FE

[New York Enrolled Agent]

Also, per the instructions for line 23 of NY Form IT-210, I only saw codes A-1 through A-28 that could be used. I did not see any "FA" code listed. (Pages 65-68 of http://www.tax.state.ny.us/pdf/2009/..._201i_2009.pdf )

Try page 64