Client has trust income from CA Resident Trust but as a bene he is a full year non-resident. I never had to deal with out of state benes and am lost a little. Income is from real estate, interest, dividends, capital gain and other portfolio income. I am sure the real estate income is taxable in CA but what about all the portfolio income?
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It's the trust's portfolio income. I presume it would be CA taxable.Originally posted by Gretel View Post -
It's been my understanding that income from intangible property is sourced where the taxpayer resides, not where the payer is located. I say yes the real estate income is CA source, but not interest or dividends.Originally posted by DonB View Post
OTOH, I just skimmed through the CA Form 541 booklet, and it does sound complicated when there are non-resident beneficiaries. I do very few trusts, but one time there was a Texas resident beneficiary and I recall only the gain on sale of CA-based real estate was taxable to CA.
If the dollar numbers are substantial I suggest you try to find someone with a lot of CA Form 541 experience to consult with.Last edited by Rapid Robert; 03-28-2018, 11:23 AM."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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CA Form 541 booklet
Yeah, I also looked at the booklet CA Form 541 booklet. It seems the complications come only into play if not all income is distributed and apply to the trust not the beneficiaries. Since I have one confirmation that the same non-resident rules apply to a beneficiary as apply to an individual I will follow my conclusion: Rental income taxed to CA, portfolio income is not. Thanks,Comment
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