N.Y. Comp. Codes R. & Regs. tit. 20 § 101.8
Tax Law, § 5
An entity that is a real estate mortgage investment conduit (REMIC), as defined in section 860D of the Internal Revenue Code, is not subject to the New York State personal income tax imposed under article 22 of the Tax Law. A REMIC will not be treated as a partnership or trust for New York State personal income tax purposes under article 22 of the Tax Law. However, a New York State resident who is a holder of a regular or residual interest, as such terms are defined in section 860G of the Internal Revenue Code, in a REMIC will be subject to the New York State personal income tax imposed under article 22 of the Tax Law on such interest, or the income from such interest, of the REMIC to the extent included in Federal adjusted gross income. A nonresident who is a holder of a regular or residual interest in a REMIC will be subject to the New York State personal income tax imposed under article 22 of the Tax Law on such interest, or the income from such interest, of the REMIC to the extent included in Federal adjusted gross income and attributable to a business, trade, profession or occupation carried on in New York State.
N.Y. Comp. Codes R. & Regs. Tit. 20 § 101.8