1041 state question - Dad died while living in Michigan. On the 1041 return the only income is from California rental home. All income was distributed. Do I need to complete Michigan AND California state return?

Hi, my Dad passed away while living in Michigan. He owned a rental home in California. I've completed the 1041 Federal return and my brother (who lives in Nevada) is the beneficiary of all the income (reported on K-1). Since 100% of the income was distributed do I still need to complete state tax returns? If so, do I have to complete BOTH Michigan and California? I don't mind doing this, but I hate paying $55 for each state return on Turbotax. :(

Thanks!

516

1 Best answer

Level 15

Apr 2, 2022 7:21:11 PM

You might have to file in both states since he was a resident of Michigan when he passed away and also has California source income

Michigan: https://www.michigan.gov/taxes/iit/fiduciary

California: https://www.ftb.ca.gov/file/personal/filing-situations/estates-and-trusts/index.html

Level 15

Apr 2, 2022 7:21:11 PM

You might have to file in both states since he was a resident of Michigan when he passed away and also has California source income

Michigan: https://www.michigan.gov/taxes/iit/fiduciary

California: https://www.ftb.ca.gov/file/personal/filing-situations/estates-and-trusts/index.html

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1041 state question - Dad died while living in Michigan. On the 1041 return the only income is from California rental home. All income was distributed. Do I need to complete Michigan AND California state return?