Spot on answer Joshua. Makes perfect sense to me now with your explanation. Taxpayer, my client, and spouse who has someone else prepare there return, are filing completely separately. Both are fairly wealthy and have kept and keep affairs completely separate. My client has "all kinds of income", pensions, RE, portfolio, etc. He has rental property in CA hence the 540NR. Spouse has no assets in CA.

Thanks again, you solved it.

Lance