Yes, if the estate had California-sourced income that's reported to you on Schedule K-1, you will need to file a California state tax return.
Here's a list of potential California source income:
- Compensation
- Business income
- Sale of stocks and bonds
- Sale of real estate
- Partnerships, S corporations, and certain trusts
- Installment sales
- Nonstatutory Stock Options (NQSOs)
- Incentive Stock Options (ISOs)
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