In a community property state (such as California) income generated from community property is community income and community income must be ___________ between spouses or California Registered Domestic Partnerswhen a married filing separate return is filed. When separate property is commingled, it could lose its separate property status and be considered community property.

Select one:

a.separated

b.equally divided

c.apportioned

d.eliminated

Question27

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Which of the following statements below is a true statement regarding the following situation, given that California is a community property state: Mindy and Sue arelegally married in the State of California (same-sex couple)will file their California Personal tax return using the Married/RDP Joint filing status. Mindy earned $28,000 as a bank customer service agent and Sue earned $32,000 as a medical technician.

Select one:

a.Mindy and Sue will report their income separately and pay their taxes separately.

b.Mindy and Sue will report their income separately but can combine their tax liability and make one payment or receive on refund.

c.Enough information is not given to determine a correct statement.

d.Mindy and Sue will file one tax return and combine their incomes on the tax return.

Question28

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Either spouse was a non-resident for the entire year and had no income from California sources during the year. Which of the following statements is true?

Select one:

a.Even if a married joint filing status is used for the federal tax return a married separate filing status must be used for California.

b.The taxpayer must use the same filing status for California that was used on his/her Federal Income Tax Return.

c.The taxpayer can decide whether he/she will use the separate or married joint filing status for California.

d.None of the above are true.

Question29

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Eric and Selma are married and file Married Joint on their Federal tax return. Eric was a resident of a non-community property state for the entire year and earned no income from California sources. Selma was a California resident for the entire year and worked in San Francisco full time for a marketing firm. They would like to file a joint California return. Which form must they file?

Select one:

a.Form 540, for residents

b.Form 3800, for residents

c.Form 540NR, for non-residents

d.You can not file a Joint California return in this situation.

Question30

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Regarding Gross Receipts for a California business, which of the following statements is correct?

Select one:

a.Amounts realized on the sale or exchange of property is to be reduced by the cost of goods sold or the basis of property sold to arrive at gross receipts.

b.Gross receipts, even if business income does not include damages and other amounts received as the result of litigation or tax refunds and other tax benefit recoveries.

c.Gross receipts include repayment, maturity, or redemption of the principal of a loan, bond, mutual fund, certificate of deposit, or similar marketable instrument.

d.A and B above are both correct.

Question31

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Which of the following taxpayer filing statuses maynotclaim the credit for Joint Custody Head of Household?

Select one:

a.Head of Household filing status

b.Qualifying widow(er) filing status

c.Single filing status

d.Either A or B

Question32

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Which of the following filing statuses can be used when claiming the Credit for Dependent Parent?

Select one:

a.Single

b.Head of Household

c.Married Joint/RDP

d.None of the above

Question33

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For the year in which an order of adoption is entered, you may claim a credit for 50% of the cost of adopting a child who is ________.

Select one:

a.a foreign national

b.in the custody of a federal public agency or political subdivision

c.in the custody of a California public agency or political subdivision

d.all of the above

Question34

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California is a Community Property state but note that it doesnotrecognize _______.Community property is all of the property that is not separate property, acquired by a spouse or California Registered Domestic Partner (or both individuals)while domiciled in a community property state.Regardless of who acquires the property,once it is community property it is owned by both equally (50%/50%). One exception may be the fact that generally _______ agreements are enforceable in California.

Select one:

a.Common Law Marriage / prenuptial

b.Register Partners / contract

c.Same Sex couples / prenuptial

d.Marriages from foreign countries / child support

Question35

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Which of the following statements is true concerning the California use tax?

Select one:

a.In general, you should pay California use tax on purchases made from out-of-state (for example by telephone, internet or in-person) if the seller does not collect California sales or use tax.

b.In general, you should pay California use tax on purchases made from out-of-state (for example by telephone, internet or in-person) if you use, give away, store, or consume the item(s) in Cailifornia.

c.If you have not paid all use tax to the State Board of Equalization, you must report and pay the use tax due on your personal California income tax return.

d.All of the statements above are true.

Question36

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California use tax applies to purchases from out-ofstate sellers (for example, purchases made by telephone, over the Internet, by mail, or in person). A taxpayer paid $28.00 sales tax to another state for a purchase, and would have paid $26.00 in California. How much of a credit can the taxpayer report towards the California Use Tax.

Select one:

a.$28.00

b.$2.00

c.$0.00

d.$26.00

Question37

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Which of the following statements is true?

Select one:

a.If you owe additional California State Taxes for the year and can't pay the entire amount with your tax return, you may submit Form 3567 requesting an approval to make installment payments.

b.Even though a Mello-Roos tax may be paid with other property taxes, it cannot be deducted if it is assessed to fund local benefits and improvements that tend to increase the value of the property.

c.A California nonresident, that is required to file a California tax return, will file Form 540(NR)

d.All of the above are correct

Question38

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Before you file a California business tax return, you need to determine if your business is considered to bedoing businessin California. Which of the following conditions willlead to a determination that the business is doing business in California and therefore required to file a tax return?

Select one:

a.The business has obtained a business license from a locality located in California.

b.The business is actively engaged in transactions for the purpose of pecuniary (anything relating to money) gain or profit in California.

c.Real and tangible personal property of the taxpayer in California exceeds a certain threshold (adjusted for inflation annually) of the taxpayer's total real and tangible personal property.

d.All of the above are valid conditions.

Question39

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For a couple that is living together in the same household, when do the rules of Community Property begin?

Select one:

a.When they enter into a Registered Domestic Partnership that is filed with the California Secretary of State.

b.When they are legally married by a Justice of the Peace.

c.When they enter into a same-sex legal marriage performed by a county judge.

d.All of the above are correct.

Question40

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Service members domiciled outside of California, and their spouses, will ______ the service member's military compensation when computing the tax rate on nonmilitary income.

Select one:

a.exclude

b.include

c.add

d.aggregate

Question41

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For a couple that is legally bound by the Community Property rules of California, when do Community Property rules cease to apply?

Select one:

a.When one spouse moves out of the home for over 90 consecutive days.

b.When a domestic partnership is dissolved through filing a court action identical to an action for dissolution of marriage.

c.When either spouse independently decides that he or she no longer wants to be bound by the rules of community property.

d.All of the above are correct.

Question42

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The California Franchise Tax Board may offer a program similar to the federal Innocent Spouse Relief program, which releases a taxpayer from liability of taxes owed on a Married Filing Joint / RDP return. This program, in California, is called __________.

Select one:

a.Innocent Joint Filer Relief

b.Joint Innocent Relief

c.Joint Separation

d.Non-binding Tax Separation

Question43

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If you enrolled in a health plan through the Affordable Care Act in California, whether or not you received federal financial help towards paying your health insurance premiums, you will receive an IRS Form 1095-A. What information will this form provide?

Select one:

a.It will show the months you had health insurance coverage through Covered California.

b.It will show the deductible towards medical expenses that your coverage provided.

c.It will show the amount you spent on medical expenses during the year.

d.It will show the Covered California health insurance plans that were available to you.

Question44

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For this question assume you are completing a 2018 tax year return.Which of the following statements is true regarding taking the Standard Deduction or Itemizing deductions on the California tax return?

Select one:

a.If deductions were not itemized on the federal income tax return but will be itemize for California, you must first complete federal Schedule A (Form 1040), Itemized Deductions. Both the federal Schedule A (Form 1040) and California Schedule CA (540) are attached to the California tax return.

b.California standard deduction amounts are the less than federal amounts. Because of this, you will generally might take the Standard Deduction on the federal return and itemized on the California return

c.If two taxpayers are married and file separate California tax returns, each spouse can independently decide whether they will itemize or use the standard deduction, on their own tax return.

d.Unlike federal tax law, California itemized deductions are not limited based on federal AGI.

Question45

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For federal purposes, rental real estate activities of persons in real property businessmay be treated asnonpassive activities. California ....

Select one:

a.California has conformed to this provision.

b.California has not conformed to this provision.

c.California's standing on this provision is not clear.

d.California considers all real estate activity as nonpassive, so a determination does not need to be made.

Question46

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Form FTB 3885A, Depreciation and Amortization Adjustments, is used:

Select one:

a.Whenever Section 179 qualifying property is deducted.

b.Only if there is a difference between the amount of depreciation and amortization allowed as a deduction using California law and the amount allowed using federal law.

c.Whenever California depreciation is present on a return.

d.Whenever Federal Form 2106, Employee Business Expenses, is completed.

Question47

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If you are a dependent of another person (any filing status), you will be required to file a California tax return if:

Select one:

a.Your income exceeds $100.00

b.You earned any amount of tip income during the year

c.Your income exceeds the amount of your Standard Deduction

d.You received any amount of unemployment compensation

e.Both B and C are correct

Question48

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For the 2019 tax year (returns filed in 2020) California law _______federal law when it comes to allowing parents to elect reporting a child's interest and dividend income from children under age 19 or a student under age 24 on their own tax return.

Select one:

a.does not conform to

b.conforms to

c.will never conform to

d.may conform to

Question49

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In order to calculate the California Exemption Credit Percentage for a part-year resident, the taxpayer will:

Select one:

a.Divide the California Taxable Income by Total Taxable Income

b.Multiply the California Taxable Income by Total Taxable Income

c.Divide the Total Taxable Income by California Taxable Income

d.Subtract the Total Taxable Income from California Taxable Income

Question50

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Winnings from a California lottery are:

Select one:

a.exempt from California state and personal income taxes but will be assessed federal income taxes.

b.exempt from California state and personal income taxes and federal personal income taxes.

c.not exempt from California state and personal income taxes but will be exempt from paying federal income taxes.

d.exempt from California state and personal income taxes up to the first $600.00 but will be assessed federal income taxes on the total amount.