In general, you should pay California use tax on purchases made from outofstate when the purchases are made ________ and the seller does not collect California sales or use tax.

Select one:

a. by telephone.

b. over the internet.

c. in person.

d. All of the above

Effective January 1, 2014, all taxpayers who defer gain or loss under Section 1031 by selling relinquished property in California and acquiring replacement property outside of California must do which of the following?

Select one:

a. Place the estimated tax liability from the transaction into an escrow account that is to be held for a minimum of 10 years.

b. File an information return with the FTB for the year of the exchange and for each subsequent year in which the gain or loss from that exchange has not been recognized.

c. Do nothing at the time of the sale but comply with any requests from the FTB received via a Notice of Proposed Assessment.

d. None of the above are correct actions that must be taken.

Question text

It is possible that _________contributions are made to the State Disability Insurance plan, especially if the taxpayer has two or more employers during the year.

Select one:

a. Excess

b. Minimal

c. Sufficient

d. No

Which statement below best explains California Adjusted Gross Income (CA AGI)?

Select one:

a. California adjusted gross income is your federal adjusted gross income from all sources reduced or increased by all California income adjustments.

b. California adjusted gross income is your California gross income from all sources reduced or increased by all Federal income adjustments.

c. California adjusted gross income is your federal adjusted gross income from all sources reduced or increased by all federal income adjustments.

d. California adjusted gross income is your federal gross income from all sources reduced or increased by certain California income adjustments.

The Child and Dependent Care Expenses tax credit is a __________credit in California.

Select one:

a. non-refundable

b. Actual

c. refundable

d. revocable

Tax law allows parents election to report a childs interest and dividend income from children under age 19 or a student under age 24 on their own tax return. Which of the following statements is false regarding this election?

Select one:

a. The tax on minors is sometimes referred to as the Kiddie Tax.

b. The election to include the childs income on the parents return applies to both earned and unearned income.

c. The election to include the childs income on the parents return was designed to keep parents from shifting investment income to their children to take advantage of the childs lower tax bracket.

uestion text

Which of the following statements regarding the California Competes Tax Credit is true?

Select one:

a. The credit is refundable.

b. The credit can be carry forward for ten years

c. Tax credit agreements will be negotiated by GO-Biz but Go-Biz does not have the authority to review certain businesses books and records.

d. If agreed upon milestones for a taxable year are not met, the credit is not earned for that taxable year.

e. All of the above statements are true.

d. For taxable years beginning on or after January 1, 2010, California law conforms to federal law which allows parents election to report a childs interest and dividend income from children under age 19 or a student under age 24 on their tax return.