I have just reread your post for the umpteenth time, and I see that your trust is resident in Pennsylvania.
Why has the issue of sourced income even come up? I would expect that all income for a Pennsylvania trust would be taxed in Pennsylvania, excepting only that income that is specifically exempted from taxation by statute.
As I read the instructions, the question of "sourced" income only comes up for a nonresident estate or trust.
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