Rachel and Rob Are Married and Living Together in California

question 18

Essay

Rachel and Rob are married and living together in California. Their income is: $\begin{array}{lr}\text { Rob's salary } & \$ 120,000 \\\text { Rachel's net income from her business } & 130,000 \\\text { Interest (Rob's separate property investments) } & 4,000 \\\text { Interest (Rachel's separate property investments) } & 2,000 \\\text { Dividends (community property) } & 5,000\\\text { Total income is } \$ 261,000\end{array}$
a. If Rachel files a separate return, how much income should she report?
b. If Rob and Rachel live in Texas, what should Rachel report as income?

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Definitions:

East

A cardinal direction, typically associated with the direction from which the sun rises in most geographical locations.

Midwest

A geographical region in the United States known for its central location and characterized by a mix of urban and rural areas.

Parallelism

In writing and speech, it's the use of similar patterns of words to show that two or more ideas have the same level of importance.

Sales Productivity

The efficiency and effectiveness with which a sales team achieves its sales targets, often measured in sales volume per time period.