Looking for a California Tax Forms And Templates? Download it for free!

If the beneficiary of an estate or trust was a

beneficiaries must attach Form 592-B to the

Line 3 and Line 4 – Enter the beneficiary’s

resident of California for the estate’s or trust’s

front of their California return to claim the

share of each item, trust payments, tax-exempt

entire taxable year, the beneficiary’s share of

withholding amounts. Schedule K-1 (541) may

interest, or credits on Schedule K-1 (541).

the estate’s or trust’s income or loss for the

not be used to claim the withholding credit.

Attach a separate sheet for each item reported

taxable year is taxable to California.

on line 13 showing the computation. Items

Line 6 through Line 8 – Enter the beneficiary’s

that must be reported on this line include

share of trade or business, rental real estate,

Internet

the allocable share, if any, of items listed on

and other rental income, minus allocable

line 13a through line 14a.

You can download, view, and print California

deductions (other than directly apportionable

tax forms and publications from our Website at

deductions). To assist the beneficiary in figuring

Line 3a – Enter the beneficiary’s share of

any applicable passive activity loss limitations,

estimated payment credited.

also attach a separate schedule showing the

Form 541-T must be submitted in order for the

Specific Line Instructions

beneficiary’s share of income derived from each

beneficiary to receive credit for the payments.

trade or business, rental real estate, and other

When completing the California Schedule K-1

Line 3b – If taxes were withheld by

rental activity.

(541) refer to the Federal/State Line References

the fiduciary, or there is a pass-through

chart located on the back of Schedule K-1

Line 9a through line 9c – Enter the

withholding credit from another entity, the

(541) that shows the specific line instructions

beneficiary’s share of the depreciation and

fiduciary must provide each affected partner

between the federal Schedule K-1 (541) and

depletion deductions directly apportioned

(including California residents), a completed

the California Schedule K-1 (541).

to each activity reported on line 5 though

Form 592. The fiduciary and beneficiaries

line 8. Itemize the beneficiary’s share of the

The estate or trust is required to request and

must attach Form 592-B to the front of their

amortization deductions directly apportioned to

provide a proper identification number for each

California return to claim the withholding

each activity on line 5 through line 8. For more

beneficiary, see R&TC Section 18624. Enter

amounts. Schedule K-1 (541) may not be used

information, see the federal instructions for

the beneficiary’s number on the respective

to claim the withholding credit.

Schedule K-1 (1041).

Schedule K-1 (541) when the estate or trust

Line 3c – Enter taxes paid to other states

files Form 541, California Fiduciary Income

Line a through Line d – If this is the final

reported on Schedule S, Other State Tax Credit.

Tax Return.

return, enter on line 11 the beneficiary’s share

Attach a copy of the return filed with the other

of any of the following:

Individuals and business beneficiaries are

state, evidence of payment, and a copy of

responsible for giving the estate or trust their

• Excess deductions on termination (follow

Schedule S to verify the amount of tax paid.

social security number or Individual Taxpayer

the instructions for federal Form 1041)

Line 3d – Enter on an attached schedule each

Identification Number (ITIN), California

• Capital loss carryover

beneficiary’s allocable share of any credit or

corporation number, Secretary of State file

• Unused net operating loss (NOL) carryover

credit information that is related to a trade or

number, or federal employer identification

for both regular and alternative minimum

business activity.

number (FEIN) upon request.

tax, if the NOL carryover would be allowed

Line 4a – Enter tax-exempt interest received

to the estate or trust in a later year but for

The estate or trust may use federal Form W-9,

by the estate or trust (including exempt-interest

termination

Request for Taxpayer Identification Number

dividends received as a shareholder in a mutual

and Certification, to request the beneficiary’s

Note: No deduction is allowed for estate taxes.

fund or other regulated investment company).

identifying number.

Net Operating Loss (NOL)

Line 4d – Enter any other item that is not

Columns (b), (c), (d), and (e)

For taxable years beginning on or after

included:

January 1, 2004, 100% of the NOL may be

In column (b), the amounts entered are from

The estate or trust may need to report

carried forward. For more information, get

your federal Schedule K-1 (1041).

supplemental information that is not

form FTB 3805V, Net Operating Loss (NOL)

In column (c), the amounts entered are

specifically requested on the Schedule K-1

Computation and NOL and Disaster Loss

the adjustments resulting from differences

(541) separately to each beneficiary.

Limitations – Individuals, Estates, and Trusts.

between California and federal law for each

If the estate or trust is claiming tax benefits

Line a – Enter the beneficiaries share of

specific line item.

from an Enterprise Zone (EZ), Los Angeles

the adjustment for minimum tax purposes.

In column (d), the amounts entered are the

Revitalization Zone (LARZ), Local Agency

To figure the adjustment, subtract the

result of combining column (b) and column (c).

Military Base Recovery Area (LAMBRA),

beneficiary’s share of the income distribution

In column (e), the amounts entered are used

Manufacturing Enhancement Area (MEA), or

deduction figured on Form 541, Schedule B,

to report California source income and credits.

Targeted Tax Area (TTA), it should give the

line 15, from the beneficiary’s share of the

beneficiaries their distributive share of the

income distribution deduction on an alternative

Line and Line – Enter in column (b), the

business income and business capital gain or

minimum tax basis figured on Schedule P

amounts from federal Schedule K-1 (1041),

loss apportioned to the EZ, LARZ, LAMBRA,

(541), Part II, line 15. The difference is the

and in column (c) any adjustments resulting

MEA, or TTA on this line.

beneficiary’s share of the adjustment for

from differences between California and federal

minimum tax purposes.

law for each specific line item.

An estate or trust cannot pass through the

Line 3 – Enter the combined amount from

alternative minimum taxable income (AMTI)

federal Schedule K-1 (1041), line 3 and line 4a.

exclusion to the beneficiary. The fiduciaries

Gains or losses from the complete or partial

for the estate or trust must recalculate

disposition of a rental real estate or trade or

Schedule P (541), Alternative Minimum Tax

business activity that is a passive activity must

and Credit Limitations, by leaving line 7b

be shown on an attachment to Schedule K-1

blank. This will eliminate the effect of the AMTI

(541).

exclusion but allow other items of adjustment

Line 5 – Enter on line 5 the benefiary’s share

or tax preference to be passed through to

of annuities, royalties, or any other income

the beneficiary. The recalculated amount on

(before directly allocable deductions) that

Schedule P (541), line 10, must be entered on

is not subject to any passive activity loss

Schedule K-1 (541), line 12a, column (d).

limitation rules at the beneficiary level. If taxes

Line b through Line e – Enter the

were withheld by the fiduciary, or there is a

amounts from Schedule P (541). Get the

pass-through withholding credit from another

instructions for federal Schedule K-1 (1041)

entity, the fiduciary must provide each affected

for more information.

partner (including California residents), a

completed Form 592. The fiduciary and

Page Schedule K-1 (541) 2007

Schedule K-1 (541) Draft - Beneficiary'S Share Of Income, Deductions, Credits, Etc. - 2007 Page 4

Related Articles

Related forms

Related Categories