What determines what state to file state income taxes for the trust? The state of the trustee or the state of the beneficiary? Other?
- posted
9 years ago
What determines what state to file state income taxes for the trust? The state of the trustee or the state of the beneficiary? Other?
I'm not aware if there is a specific rule on this. But normally the trustee is the legal owner of trust property, and where the trustee is located is normally considered where the trust is located. So I would guess that trust taxes (assuming it's an irrevocable, non- grantor trust) would be filed where the trustee is located.
Of course if some trust property is located in a different state, then that state may also require a return to be filed to report income earned in that state.
If you are unsure, you should find a professional tax preparer (either CPA or Enrolled Agent) to advise you and do the trust taxes.
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