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

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
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

Dynamic AdsDynamic Ads
v
Privacy Settings