Sold a house in a trust in California and live in Arizona. I received a K-1 (1041) & K-1 (541) . It shows I owe taxes in California any Arizona, Is this correct?

[DDollar]

Yes, if the house was in California, any gain on the sale is taxable by California, whether you are resident or not.

[CaronM]

Do note that you won't be double taxed; you are eligible for a tax credit on your California return for the AZ tax you paid on the sale. The program will help you determine the amount and complete the needed forms.