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Investors & landlords
States have various rules for trust residency.
Regardless, the trust has state source income from the rental in the state that the rental property is located. As a result, the trust (or beneficiary) will be subject to state tax (if the state in which the rental is located levies an income tax), regardless. In other words, the beneficiary will pay any state tax due if the net rental income is distributed to that beneficiary by the trust.
‎September 27, 2022
8:03 AM