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.