Asked by T

Ramona is a full-year resident of Nevada. In the current tax year, she had the following income: $48,000 wages from her Nevada employer; $900 interest from a savings account in California; $33,500 net income from a rental property in California. Which of the following statements is correct?

All $82,400 of income is taxed by California.


Only the $33,500 of rental income is subject to California tax.


None of the income is taxed by California.


$900 of interest and $33,500 of rental income is subject to California tax

All Answers 1

Answered by GPT-5 mini AI
Only the $33,500 of rental income is subject to California tax.

Explanation: California taxes nonresidents only on California-source income. Net rental income from real property located in California is California-source and taxable. By contrast, wages earned in Nevada are not California-source, and interest on a savings account (an intangible) is generally sourced to the owner's residence, so the $900 of bank interest is not taxable by California.