Fiduciary return with multi-state beneficiaries

Forum|Forum|1 year ago
March 18, 2025
9 replies
23 views

I am preparing a fiduciary return that has three OR beneficiaries and one CA beneficiary.

Three calls and three hours later with technical support and I am still unable to generate K-1's based on the beneficiary's state or residence (no source income from any state, it is all interest and dividends).

One of the support rep's I spoke with said pick a state, issue the K-1's under that state and the beneficiaries will need to just report the income on their state return.

Another one suggested I just override all forms and allocate manually.

Any help would be greatly appreciated. I am beginning to think issuing a K-1 based on state of residence is not an option.

This topic has been closed for replies.

sjrcpa

Level 15

What states did you use when you entered the interest and dividend income?

What is the situs of the estate/trust and is that entered?

I have had trouble getting state K-1s to be correct, too.

The more I know the more I don’t know.

J

Jamie L WallingAuthor

Level 2

Isn't that the truth.

I was told to add CA and OR states and then enter the income allocation by state when I input it. Like you do with an individual return with multi-state income.

sjrcpa

Level 15

If it's a CA trust, I don't think you need to file OR unless OR has the same CA type rule. Then somewhere in the beneficiary info or in the CA Misc you should be able to indicate which beneficiaries are CA nonresidents, or that the income is from intangibles. Then maybe it will work.

The more I know the more I don’t know.

IRonMaN

Level 15

You prepare the return for the state in which the trust or estate was formed. Just because a beneficiary lives in another state has no impact on the fiduciary itself.

Slava Ukraini!

J

Jamie L WallingAuthor

Level 2

The trust was fomed in CA and according to the FTB, we do not have to file a CA fiduciary return if there are no CA fiduciaries, noncontingent beneficiaries or California sourced income.

I love your answer but it isn't supported by my research and other CPA's advice.

Do you have a source?

BobKamman

Level 15

@Jamie L Walling wrote:

The trust was fomed in CA and according to the FTB, we do not have to file a CA fiduciary return if there are no CA fiduciaries, noncontingent beneficiaries or California sourced income.

I love your answer but it isn't supported by my research and other CPA's advice.

Do you have a source?

I really don't understand this discussion. Your post says there is a California beneficiary. Then @sjrcpa comes along and says "Even if it's not a CA trust, CA wants a return if the Trustee or a beneficiary is a CA resident."

And you don't give the location of the trustee, but it looks like California, so you have a California fiduciary.

Ask Oregon if you have to file an Oregon trust return. Probably, because you have Oregon beneficiaries. And that's where you get the state K-1 forms for them.

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