CA Form 593 and 592
Can someone assist with the following California trust withholding issue?
My client is the sole trustee and sole beneficiary of a nongrantor trust filing its first and final Form 541. The trust sold the decedent’s residence, and the escrow company incorrectly withheld California real estate withholding at 3 1/3% and remitted it to the FTB.
All trust funds have already been distributed, so I am trying to pass the withholding through to the beneficiary to claim on his individual California return.
I completed Form 593 in ProSeries Professional, but I cannot figure out how to properly prepare Form 592 so the FTB recognizes that the beneficiary — not the trust — is claiming the withholding credit.
Currently, the trust return is showing a California refund equal to the withholding amount, which I know is incorrect if the credit is being allocated out to the beneficiary.
Has anyone dealt with this situation in ProSeries or otherwise? Any guidance would be greatly appreciated. Thanks.
