I am working on a trust return where the beneficiary passed away.  How do I delete the beneficiary from the 1041 file so the trust pays the tax rather than passing through the income or expense to another individual or entity?

I have a client who lives and works in California, but the division of the company that employs him is based in New York.  He receives a W-2 showing approximately $200K of federal earnings, then $200K of California and $200K of New York earnings (so the two state amounts together are double the federal amount).  When I prepare his tax returns, the full $200K is taxed by New York on his NY non-resident tax return, then he receives a credit on his California return for the tax paid to New York.  Does that seem correct that the majority of his state tax gets paid to New York when he is a California resident and lives and worked in California?

I am working on a tax return for a California client who qualifies for the disaster relief extension due to the winter storms.  However, in the process of preparing the returns, I discover he also must file a New York non-resident return.  Will the New York non-resident return also qualify for the automatic extension or will he be considered late filing for New York and subject to penalty?

I have a client with a K-1 (Form 1065 for an LLC).  Based on the information I entered, Proseries automatically treats the income/loss as "Passive".  However, the K-1 states the income/loss should be recharacterized as "Non-Passive" based on an exception for the type of business it is.  How do I change this from Passive to Non-Passive in Proseries?

I have a client who rents a home to his mother at below market rental rates  There is no attempt to make a profit on this rental.  Here are my questions: 1. Is this rental activity reported on Schedule E?  Or is the income reported as other income like a not-for profit hobby with expenses reported on Schedule A? 2. I believe he can claim a deduction for mortgage interest and property taxes as a second home.  Can he claim any other deductions against the rental income? Thank you,

I have a client who refinanced his home mortgage in 2021 and took some additional cash to do some renovations on his home.  The balance before the refinance was approximately $733,000 and the balance after was approximately $833,000.  In addition, he converted a portion of his property into a separate living space and rents it out.  This is approximately 20% of the total living space. With the refinance, he now exceeds the $750,000 limit on deducible mortgage debt.  So my questions are: 1. Is a refinance that takes you above $750,000 in mortgage debt subject to the $750,000 limit? 2. Since 20% of the home is treated as a rental, can 20% of the $833,000 be allocated to the rental leaving the other 80% as personal residence debt (which would put him below the $750,000 limit? Thank you.