Chapter 9: Study Questions 1. Adele is a California resident, During the tax year, she won $10,000 in the California lottery and $5,000 in Las Vegas. Adele spent $4,000 on California bottery tickets and incurred $12,000 in gambling losses on her trip to Las Vegas. What amount of gambling losses can Adele claim as an itemized deduction on her California return? a) $16,000 b) $ 5,000 c) $15,000 d) $12,000 Josh paid tax preparation fees of $200 and educator expenses of $300. On the federal return, he deducted $250 of educator expenses as an adjustment to income on Schedule 1 (Form 1040). On the California return, if Josh's other job expenses and miscellaneous deductions exceed 2% of his federal AGl, what amount of the expenses listed can he claim as California itemized deductions? a) $300 b) $250 c) $500 d) $200 Carla had investment interest expenses of $450, which she deducted on Schedule A of her federal return, She elected to indude net capital gain investment income on her Calfornia retum, which increased her investment interest expenses for California purposes to $1,250. What, if any, adjustment amount would be necessary on Schedule CA (540), Part Il, line 9? a) $1,250 b) S 0 c) $ 800 d) $§ 450 On her federal return, Angelita deducted state taxes withheld of $700, real estate taxes of $800, local taxes withheld of $150, and property taxes on her vehide of $200, What amount of the taxes listed above would be allowed as a deduction on her California return? a) $1,150 b) $1,850 c) $ 850 d) $1,000 William daimed a mortgage interest credit of $900 on his federal retum. His mortgage interest payments for the tax year totaled $6,000. He itemized deductions on his federal retum. If he itemizes on his California return, what adjustment must be made on Schedule CA (540), Part Il, line 8, column C? a) $6,000 b) $ 900 c) $ O d) $5,100
