Using Turbotax business to generate 1041 beneficiary K-1 and final filing for parent's trust

[cjcuneo]

Hello,

I need some basic information related to finalizing my parent's trust.

I inherited my mother's home upon her passing.  I am the sole beneficiary.  The home was sold in 2024 and the proceeds were entered into an account (opened under an EIN for her estate).

I have the business edition of Turbotax and have entered the trust information along with the cost basis, expenses, etc.  This is the final (first and last) submission for her trust.

Turbotax generated the single Schedule K-1 (form 1041) for me to use on my individual Fed tax return.

Questions:

1) Is it necessary to ALSO submit a Business STATE return (CA, in my case) for the trust? 

    If so, does the business state return generate a state K-1 form that I will use for my 2024 individual return? 

Thanks for your assistance

C.

[AmyC · Accepted solution]

1. It depends. The executor may have to file a return if the estate meets any of these:

• The decedent was a California resident at the time of death
• Gross income is over $10,000
• Net income is over $1,000
• The estate has income from a California source
• Income is distributed to a beneficiary

from Estates and trusts | FTB.ca.gov - Franchise Tax Board

2. Yes, you will generate a CA k-1 to represent CA sourced income.