The California throwback tax is not widely understood by practitioners, trustees, or beneficiaries of trusts. In this program, we discuss our interpretation of the intent and application of that law, suggest a methodology for tracking accumulated income in non-California resident trusts, and explore opportunities to plan around the tax.
- Richard S. Kinyon, Partner, Shartsis Friese
- Kirsten Wolff, Partner, Sideman & Bancroft
- Brief Overview of California’s Taxation of Trust Income
- Origin of California’s Throwback Tax and its Application
- Practice Tips on Tracking and Estimating Accumulated Income
- Planning Opportunities to Minimize the Application of the Throwback Tax