Question 11 of 99.

June, who files single, files 2018 amended federal and California tax returns to report $1,600 in interest she left off her original return. What forms and schedules will she need?

Form 1040X, Form 540, and Schedule X.

Form 1040, Form 1040X, Schedule B, Form 540, and Schedule X.

Form 1040X, Schedule B, Form 540, and Schedule X.

Form 1040X, Schedule B, and Form 540X.

Question 12 of 99.

In September of 2019, Bill and Iris moved from Montana to California for Bill's job. For the California return, all qualified moving requirements were met. They paid $695 for a rental truck, $48 for boxes, and $23 for packing materials to move their personal property to California. They also paid $120 for lodging on the way, $20 for tolls, and $59 for meals. Bill and Iris are allowed to take actual moving expenses for their personal goods on line 1 of Form 3903 in the amount of:

$695

$743

$766

$874

Question 13 of 99.

Annette and Grace married in June of 2019 and live in California. Which of these would be considered community income if they file MFS?

$240 in dividends from Annette's inherited mutual fund.

Grace's wages of $28,000 earned prior to the marriage.

Rental income of $8,000 Annette received for a house she owned previous to the marriage and has not been commingled.

Interest income of $300 Grace received from an account she opened in July 2018 in a separate property state. She deposits a regular amount from her paycheck each month into the account.

Mark for follow up

Question 14 of 99.

Martha receives a $100 distribution from a mutual fund. 49% of the fund is in California municipal bonds, 49% in Nevada municipal bonds, and 2% in Arizona municipal bonds. How much of the $100 is taxable on the California return?

$0

$49

$51

$100

Question 15 of 99.

Which of these passive loss rules for rental activity differs between California and federal law?

$25,000 deduction for active participants.

Rules for real estate professionals engaged in a real property business.

The MAGI phaseout amounts for allowable loss.

Carryforward of passive losses.

Question 16 of 99.

If a worker received a Form 1099-MISC, but is actually an employee, what form(s) can be filed to correct this?

A substitute Form W-2.

A Schedule C.

Unless an employer is willing to file a Form W-2, nothing can be done.

Form SS-8 with the IRS and Form DE 230 with California.

Question 17 of 99.

What is the Nine-Month Presumption of Residence Rule?

A. If an individual spends more than nine months of any taxable year in California, he or she is presumed to be a resident of the state.

B. The burden of proof of nonresidence rests with the individual taxpayer.

C. Both A and B.

D. The provision for an individual domiciled in California who is outside California under an employment-related contract for at least 546 consecutive days.

Question 18 of 99.

Jack signed a three-year contract to support construction projects in Afghanistan. He left California on March 15, 2018, leaving his family in their home in Ventura, California. He returned home for 30-day vacations in 2018 and 2019. Which of the following regarding his California residency status is TRUE?

He was a part-year resident in 2018 and a nonresident for 2019.

He was a part-year resident in both 2018 and 2019 because he was in California for 30 days in both years.

He was a full-year resident in both years because he has a California domicile.

He was a full-year resident in 2018 and a part-year resident in 2019.

Question 19 of 99.

Which of the following statements is correct when considering the factors that determine California residency?

The number of ties to California is the primary factor. If you have more ties to California than to another state, you are automatically a California resident.

The strength of the ties, not just the number, determines if you are a resident of California.

If you register to vote in California as an absentee voter, you are automatically considered a resident.

If you live in California for nine months, you are automatically a resident for tax purposes.

Question 20 of 99.

Gary and Charlotte had the following income and expenses for 2019: $45,000 in wages. $24,000 in rental income. $48,000 in self-employment receipts. $8,000 in rental expenses. $12,000 in self-employment expenses. Assuming there are no income adjustments, what is their California gross income?

$97,000

$105,000

$109,000

$117,000