Have similar situation as "Negative Accounting income on final trust return" with K-1's showing different amounts on line 14 of Federal (1041) and State/CA (541) https://ttlc.intuit.com/community/business-taxes/discussion/negative-accounting-income-on-final-trus...
On the Trust side, I have answered yes to the question was all the trust income distributed and found below differences. This is the final return for a complex trust. Parents home was sold in Feb2023 and all proceeds from the sale were distributed to beneficiaries (5) in Mar2023, no personal use, the home was vacant from Feb2022 (DOD) to Feb2023. Accounting income is negative due to 1) step up basis plus major >5year improvements (water heater, duct work, insulation, drywall), excluding costs for other repairs and cleanup 2) selling expenses and 3) supplemental county taxes paid after closing for that one year period based on new assessed tax value. The net of which is being transferred via K1's to beneficiaries for both Federal (1041) and CA/State (541). The differences I see between Federal and State k1's, Federal k1 has line 14 "Other Information" with 20% (5 beneficiaries) of the Income Distribution Deduction from the 1041, not on the 541. While on the State/CA k1 line 14d "Other information" shows "TOTAL GROSS RECEIPTS", a huge amount from the home sale (Proceed amount less Selling Expense/5 beneficiaries), so there is a mismatch here. This is pass through cash from the home sale. Shouldn't these amounts match and be in agreement? If so why don't they match, if they should not match, why not?
On the beneficiary side, I've entered K-1 numbers on the federal side where apparently the federal k1 is simply transferred to the State/CA return but I do not see line 14 on the State K1.
From <https://ttlc.intuit.com/community/business-taxes/discussion/line-14-k1-s-federal-and-state-don-t-mat...>
