Question

Staff Sergeant Brenner is a nonresident, active duty Marine stationed at Camp H. M. Smith, HI. For 2018, his military pay was $39,000. He had $18,000 in gross rental receipts, and $12,000 of allowable expenses from a rental property in California. He is single and does not have any dependents. Does Staff Sergeant Brenner need to file a California return?

SS Brenner needs to file a California return because he has California source gross income greater than his filing requirement. ●

Since SS Brenner is a military servicemember stationed outside of California, he is not required to file a California return.

Since the net rental income from the property is below California filing requirements, he does not have to file a California return. √

Since the gross rental income from the property is below California filing requirements, he does not have to file a California return.

Answer 1

GROSS INCOME =18000$

EXPENSES =12000$

ADJUSTED GROSS INCOME 6000$

Military Income is not California source of income.

For 2018 If gross california source of income or adjusted gross income is more than the amount shown as below than there is a filing requirement:

Gross Income threshold =$17693

Adjusted Gross income = $14154

As his gross rent exceeds 17693$ he have a filling requirement

ANSWER A