K-1 income from non-resident state do I need to file a return?

Forum|Forum|3 years ago
April 7, 2023
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I live in Oregon. I have received a California K-1 (541) for capital gains from the sale of my deceased mother's house (from a trust). Do I need to file a CA return? I reported the K-1 trust capital gains income on my Fed section in Turbo Tax, but I am not sure I know where to indicate it is from a non-resident state.

Do I need to make any notation on my Oregon return that the K-1 income is from California?

On the CA K-1 (541) the amount of capital gains in Line 3, after CA adjustments, column (d) is $367, and column (e) is blank. (Not a whole lot of $- maybe too little to report I am hoping)

Line 12a - adjustments for alternative minimum tax is $13,682 in column (d), column (e) is blank.

Line 12e - exclusions is $13,682 in both columns (d) and (e).
Line 14b - net investment income is $367 in column (d) and column (e) is blank.

I appreciate some direction and whether I need to download a California state in Turbo Tax to handle this.

Best answer by RobertB4444

No, you have less than $400 in investment income from California sources. You don't have to file in California.

You should also have a federal K1. That one you do need to include with your federal return. Oregon gets to tax it - they won't care that it is from California.

@PeteMoss77

RobertB4444Answer

No, you have less than $400 in investment income from California sources. You don't have to file in California.

You should also have a federal K1. That one you do need to include with your federal return. Oregon gets to tax it - they won't care that it is from California.

@PeteMoss77

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PeteMoss77Author

Perfect. Thank you. I have included the K-1 on the Fed return, and thus on Oregon as well.

jbernhardt

What if there's no income, but $18k in deductions on line 11?

PatriciaV

Employee

If Schedule K-1 reports no net income (essentially a passive loss), you aren't required to file a state income tax return. Most states have minimum income requirements but aren't concerned about losses.

@jbernhardt

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