1. Residents of California are taxed on all income, except income from sources outside California.
True False
2. For California a resident in any individual who is
A. In California
for other than a temporary or transitory purpose.
B. Domiciled in
California, but outside California for a temporary or transitory.
C. Any individual
who is a California resident for part of the year and a nonresident for part of
the year.
D. Both A and B
above.
3. The underlying theory of residency is that you are a resident of the place you have the closest connections.
True False
4. You an your spouse are California residents. You accept a contract to work in South America for 16 months. You lease an apartment near the job site. You contract states that your employer will arrange your return back to California when your contract expires. Your spouse and children will remain in California residing in the home you own.
A. You are not
taxed on income from South America.
B. You are taxed
on income from all sources, including income earned in South America.
C. You are taxed
only on the part of income earned in California as a part year resident.
D. None of the
above.
5. You are a resident of California. You accept a 15-month assignment in Saudi Arabia. You put your personal belongings, including your automobile, in storage in California. You have a California driver's license and are registered to vote in California. You maintain bank accounts in California. In Saudi Arabia, you stay in a compound provided for you by your employer, and the only ties you establish there are connected to you employment. Upon completion of your assignment, you will return to California.
A. You are not
taxed on income from Saudi Arabia.
B. As a
California resident, your income from all sources is taxable by California,
including the income that you earned for your assignment in Saudi Arabia.
C. You are taxed
only on the part of income earned in California as a part year resident.
D. None of the
above.
6. A tax treaty between the U.S. Government and a foreign country may exempt some types of income from federal taxation. Generally, unless the treaty specifically excludes the income form taxation by California, the income is taxable.
True False
7. The Franchise Tax Board issues tax clearance certificates for individuals in the same manner that a federal income tax clearance is issued.
True False
8. California does not allow a foreign tax credit or a foreign earned income exclusion.
True False
9. The wages of nonresident flight personal (e.g. pilot, copilot, flight attendant) are taxable by California if more than 50% of the individual's schedule flight time is in California.
True False
10. A merchant seaman who is in California only this state is a port-of-call and who maintains no other contact or connections with this state, is a resident.
True False
11. The following is a factor you can use to help you determine your residency status.
A. Location of
your principal residence and location of your spouse and children.
B. State in which
you are registered to vote, state where your license was issued and where your
vehicles are registered.
C. Location of
your social ties, such as your place of worship, professional associations, or
social and country clubs of which you are member.
D. All of the
above.
12. Any individual who is a California resident for part of the year and a nonresident for part of the year is a
A. Resident.
B. Nonresident.
C. Part-year
resident.
D. Dual status
resident.
13. A safe harbor is available for certain individuals leaving California under employment-related contracts. The safe harbor provides that an individual domiciled in California who is outside California under an employment-related contract for at least 546 consecutive days will be considered a nonresident unless
A. The
individual has intangible income exceeding $200,000 in any taxable year during
which the employment-related contract is in effect.
B. The principal
purpose of the absence from California is to avoid personal income tax.
C. Either A or B
above.
D. The
determination of residency status is solely based on the individual's
occupation.
14. Students who are residents of California leaving to attend an out-of-state school automatically become nonresidents and students who are nonresidents of California coming to this state to attend a California school automatically become residents.
True False
15. You lived and worked in Kansas. You retired in Kansas and received your first pension check on January 1, 2008. You moved permanently to California on July 1, 2008. Your pension income received beginning July 1, 2008, is
A. Not taxable
by California because California residents are only taxed on California source
income.
B. Taxable by
California because California residents are taxed on all income, regardless of
source.
C. Not taxable at
all.
D. None of the
above.
16. It is important for California income tax purposes that you make an accurate determination of your residency status. Residency is primarily a question of fact to be determined by examining all the circumstances of your particular situation.
True False
17. You are a resident of Nevada. You own residential rental property located in California. Your property has always shown a loss. You sold the property at a gain. Because you are a resident of Nevada, the gain on the sale is taxable in Nevada.
True False
18. You can have only one domicile at a time. Once you acquire a domicile, you retain that domicile until you acquire another. A change of domicile requires
A. Abandonment
of your prior domicile.
B. Physically
moving to and residing in the new locality.
C. Intent to
remain in the new locality permanently.
D. All of the
above.
19. Maintain separate property separately. If the property or the income from the property is used for community purposes, or commingled, it could lose its separate property character, overriding any agreements. Separate property is
A. Property
owned separately by the husband or wife before marriage or registering as a
domestic partnership.
B. Property
received separately as gifts or inheritances.
C. Property
declared separate property in a valid agreement.
D. Any of the
above.
20. If you paid taxes to California and another state on the same income, you may qualify for a tax credit for taxes paid to another state.
True False