Question

3. Lindsay, a California resident with a federal AGI of $100,000, reported the following items on her federal Schedule A (Itemized Deductions):

State taxes withheld
Real estate taxes
California SDI
Personal property taxes on a vehicle Mortgage interest

Tax preparation fees
Charitable contributions
Legal fees for tax representation

$1,095 $1,452 $ 495 $ 265 $5,980 $ 150 $ 680 $ 700

What is the total amount of her California itemized deductions?

a) $10,817 b) $ 8,872 c) $ 6,660 d) $ 8,377

34. Mark is single and a California resident. He itemized deductions on his federal tax return. His federal AGI is $90,000 and he had investment Income of $900 included in his AGI. He has the following items listed on his Schedule A:

State taxes withheld $1,500 Multiple prior years’ state taxes paid $6,895

Investment expenses California SDI
Tax preparation fees Employee business expenses Charitable contributions

$ 600 $ 450 $ 200 $ 990 $ 160

What deduction amount will Mark use on his California tax return?

a) $ 8,555 b) $10,795 c) $ 4,236 d) $ 160

35. Manuel met a wholesaler who could offer him cheap fireworks for resale in California. He decided to set up his booth for May and June and planned to close a week after the 4th of July. Which of the following is true?

1. a) Manuel does not need to register his business since it’s less than 90 days.

2. b) Manuel needs to obtain a temporary seller’s permit.

3. c) Manuel needs to register with the FTB before starting his business.

4. d) Manuel does not need a permit since the items are for resale.

Answer 1

Answer of the above questions:

3. (a) $10,817 is the total amount of Lindsay California itemized deductions.

34. (b) $10,795 is the total amount allowable for deduction to Mark on his California Tax Return.

35. (b) Manual needs to obtain a temporary seller's permit.