So now I have the next problem with this.  

Client now makes enough money that the returns have to be split into 2  MFS to minimize the CA Mental Health Services Tax (even though rentals had zero net income).

Even though I specify that both rentals are Taxpayer's, Lacerte still splits the rental income and expense between the TP and SP, which I can live with (even though only TP owns LLC).

BUT, the SMLLC return, which is only his, is split between both MFS returns, as if each spouse has the LLC, with the income divided equally.  They don't both have the LLC.    

I'm thinking of ignoring the SMLLC's on the split returns, and e-filing the SMLLC from the pro-forma joint return, which has accurate info

Comments?