Trustee for simple trust moved to new State during 2019.

[lpasion]

I file Fed and State for a simple trust, in which all the income is distributed to beneficiaries at the end of each year and reported on their K1's using TT Business.  The trust therefore has no income.

Q1: During 2019 I moved from Hawaii to CA.  TT said I need to file a CA 541, but I wonder if I'm also required to file for HI as I've done for years, since I lived there for 1/2 of the year.  There is never tax due on Fed or State return because of the distributions.

Q2: The proceeds from the trust originate in Texas (mineral rights only), but I've never filed a TX return for it since it's distributed to individuals in other States, but I always did file Fed and Hawaii State.  I always worry if not filing in TX has been a mistake.

[Anonymous_ · Accepted solution]

With respect to Texas, the only issue would be the franchise tax (see link below), but I believe there is a no tax due threshold of $1,130,000.

https://comptroller.texas.gov/taxes/franchise/forms/2019-franchise.php

With respect to Hawaii, a resident trust is a trust of which the fiduciary is a resident of the State or the administration of which is carried on in the State.

See https://files.hawaii.gov/tax/forms/2019/n40ins.pdf

With respect to California, the trust would generally not have a filing obligation if there are no California fiduciaries, California noncontingent beneficiaries, or California sourced income.

See https://www.ftb.ca.gov/forms/2018/18-541-booklet.html#Instructions-for-Form-541