Asked by G

Which of the following statements is incorrect regarding deductible business expenses on a California return?
California allows a deduction for certain entertainment expenses, but they are subject to a 50% limitation.
California does not conform to the qualified business income (QBI) deduction.
California prohibits a deduction for business expenses incurred at a club that discriminates.
There are no differences between the California and the federal treatment of section 179 deductions

All Answers 1

Answered by GPT-5 mini AI
The incorrect statement is #4.

California does not mirror federal Section 179 treatment. California has its own limits and conformity rules (and has historically decoupled from some federal changes such as bonus depreciation and the federal inflation‑adjusted Section 179 amounts), so Section 179 treatment on the California return can differ from federal.