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krisanderson67
New Member

1041 Trust tax return - which states do I need to add? Established in California. Beneficiaries live in Michigan and Nevada. Rental income in California.

My mom died as a resident of California. Her death caused the creation of an irrevocable trust with my father as the primary beneficary and my brother and I as beneficiaries when my Dad passes away.  Part-way through the year my Dad moved by me in Michigan. My brother lives in Nevada.  The trust owns a rental home in California. Plus, we sold my mom's principal residence in California which was in the irrevocable trust (no gain).

Am I doing this right? I believe I have to complete both a Michigan 1041 and a California 1041 (even though all the income was distributed to my Dad). OR, since the trust was created in California and the rental income was California do I not need to do a Michigan return?  The trust also had some dividends.  All income was distributed so there is no tax due.

Thanks for your help. I'd rather not have to pay to download a Michigan 1041 tax return if I don't need it!

1 Reply
tagteam
Level 15

1041 Trust tax return - which states do I need to add? Established in California. Beneficiaries live in Michigan and Nevada. Rental income in California.

" since the trust was created in California and the rental income was California do I not need to do a Michigan...?"

It appears as if you would be required to file a California return but, most likely, do not need to file a Michigan return (see page 2 at the link below). 

Frankly, I would contact the Michigan Department of Treasury to make absolutely certain (517-636-4486).

MI --> http://www.michigan.gov/documents/taxes/MI1041_Book_609426_7.pdf

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