baumgrenze wrote:

- quote -

Yes, the income retains its tax-exempt character. See the
Instructions for Form IL-1040.

Katie in San Diego

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Income from Treasury Bonds is not taxable by the states.

I manage a trust which instructs me to pay any income it
earns to a beneficiary for the rest of her lifetime. If I
invest the assets of the trust in Treasuries, when I pass
the income from the trust to the beneficiary via a K-1 does
it retain its identity as income which is not taxable by the
state of Illinois?

The beneficiary is a life-long Illinois resident; the trust
was created by her deceased sister, also life-long Illinois
resident.

Thanks,

baumgrenze

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >