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!
" 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).