I'm the trustee for a trust doing its first and final CA Form 541. I'm required to file Federal because the trust had income, but in the CA Instructions it says (I've checked where applicable):
The trustee may have to file a return if the trust meets any of these:
- The trustee or beneficiary (non-contingent) is a California resident ✓
- The trust has income from a California source ✓
- Income is distributed to a California resident beneficiary ✓
And the trust has:
- Gross income is over $10,000 ✓
- Net income is over $100
The net income on my federal return is actually negative number (a loss) due to loss on sales of bonds.
The only thing distributed to beneficiaries was corpus (principal)
Any ideas?
