Grantor trust for California Form 541

[grandmabee]

I have a Irrevocable grantor trust.  I file the 1041 with nothing on it.  All is reported on grantors 1040.

It has a rental property in California so I need to file a Ca 541 return.  Only income is from rental.

Gross rents of 9600 and net of 5400.  Do I still need to pay tax to CA?  when I do the forms it shows a tax due.

This is a 2020 return.  Isn't it the same as federal and it all get reported on individual return?

Any help is appreciated.

TIA

[Catherine]

Don't know about CA rules, but wouldn't that income pass through the 1041 on a K-1 and then be reported on the individual's 1040 anyway?  Then the individual needs to see if they are over the state income limit for CA filing.

In general, I have clients with rentals file in the state the property is in.  (All mine are paper losses, because of depreciation.)  That starts the statute and prevents the nastygram from the state demanding tax on the gross income on a 1099-MISC for rents.

[joanmcq]

Why would an Irrevocable trust be reported on the client’s own return? Irrevocable trusts have to file a 1041.  With income & expenses.