Thank you for the response.
However, "non-resident" issues are not the issue here. The taxpayer, trust, and real estate sold are all in California. Nothing is out of state.
The issue is that the real estate was sold by a irrevocable trust, as a separate entity from the taxpayer. The trust has its own name and TIN - different from the taxpayer. The trust's EIN are on the 1099-S and the 593 form.
I believe a 1041 / 541 trust return needs to be prepared. I'd like to pass the long term capital gain over to the taxpayer (me) via a K-1.
But how to handle the CA 3.333% withholding is my question. I assume this needs to be reported on the trust's CA form 541. The trust will have zero tax liability since the capital gain will be passed through, so do I simply claim the withholding as a refund on the 541? (I was easily able to create a return this way.)
Or is there some kind of way to "pass-through" the withholding as a credit to the taxpayer (me) on the K-1? (If so, I have no clue on the *specifics* on how to enter/report this.)
Thank you.
