Hi Follower tax preparers,

I have received a Maryland Trust from a new client. The Trust has only one item in the Trust. A NJ vacation rental property. But the previous tax preparer did not file a NJ state tax return for the beneficiaries to pay NJ taxes for the net rental income. Yes income. Her response was the Trust was created in Maryland therefore a Maryland K-1 is generated. This does not make sense to me. How does NJ get its share of the taxes.  Am I wrong here? Should the k-1 be a NJ k-1? not a Maryland k-1?