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Level 2
posted Jul 26, 2024 5:03:37 AM

What is the definition of Gross Income and Net Income for filing CA Form 541? Does CA Form 541 need to be filed?

I am a CA resident trustee. I am also beneficiary of trust with 2 non resident beneficiaries. 

For simplicity, assume trust has $2,000 in taxable dividends from stocks and $11,000 in treasury interest in a money market fund and no deductions. The trust distributes all income. Is the Federal Form 1040 gross income $13,000 and the CA gross income $2,000?  The taxable income on the 1040 is $-100 (negative). The taxable income of fiduciary  on the CA 541 is $0. What is the CA 541net income? Is CA Form 541 required to be filed? Thank you.

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1 Replies
Level 2
Jul 26, 2024 2:31:10 PM

It is a Florida trust. The Form 541 instructions state the fiduciary must file Form 541 for a trust if any of the following apply: 

* Gross income for the taxable year of more than $10,000

* Net income for the taxable year of more than $100

Do any of the above apply?