Negative Accounting income on final trust return

[Selrith]

I'm filing the final return for a complex trust for my in-laws passing away. Everything was distributed in 2022 except for the inherited home and a little cash. The home wasn't sold until 2023 and there was a loss. When I get to the "Was all the trust's income distributed?" question, it asks if I distributed the negative income. If I say yes, it works but then the California return doesn't match. If I say a different amount, which should be zero, then it asks for tiers. There are no tiers, no distribution, except for the pass through of cash from the home sale. I know there should be a carry forward loss for the beneficiaries on their K-1. How do I make it match the California return? Thanks.

[RobertB4444]

The correct answer to the question is 'yes' since you distributed all of the income after the sale and you say that works for the federal return but then doesn't work for the California return.  Since that is the correct answer for the federal and the federal return is working correctly at that point then the error is in the California return.  So, what is happening in the California return when you answer yes to the question "Was all the trust's income distributed?"

@laraebakerink14044