Can the 2019 1041, which is on the accrual basis, deduct CA state taxes assessed on the 2019 return? This is the last return but not the final return because the estate doesn't close until 2020. However, no income is expected in 2020 so no return will need to be filed.
After reading that it's only possible if the item is a so-called "recurring item", it''s still unclear to me (page 12 Pub 538). Is this an election on the return? There is also the Wells Fargo case, a corp on the accrual basis, which could not deduct accrued state taxes until paid.