N.Y. Est. Powers & Trusts Law § 11-a-5.5

§ 11-A-5.5 Income taxes\n (a) A tax required to be paid by a trustee based on receipts allocated\nto income must be paid from income.\n (b) A tax required to be paid by a trustee based on receipts allocated\nto principal must be paid from principal, even if the tax is called an\nincome tax by the taxing authority.\n (c) A tax required to be paid by a trustee on the trust's share of an\nentity's taxable income must be paid proportionately:\n (1) from income to the extent that receipts from the entity are\nallocated to income; and\n (2) from principal to the extent that:\n (A) receipts from the entity are allocated to principal; and\n (B) the trust's share of the entity's taxable income exceeds the total\nreceipts described in subparagraph (1) and clause (A).\n (d) For purposes of this section, receipt allocated to principal or\nincome must be reduced by the amount distributed to a beneficiary from\nprincipal or income for which the trust receives a deduction in\ncalculating the tax.\n