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Simba and Zola are married but file separate returns
Simba and Zola are married but file separate returns. Simba received $80,000 of salary and $1,200 of taxable dividends on stock he purchased in his name and paid from the salary he earned since the marriage. Zola collected $900 in taxable interest on a certificate of deposit she inherited from her aunt. Compute Zola's gross income under two assumptions as to the state of residency of the couple. If an amount is zero, enter "$0."
| Dividends | ||
| Interest | ||
| Salary | f. ________ |
Expert Solution
Note: Under community property system, all the property is deemed to be community property except when
- A property is acquired or held by the spouse before marriage or
- Property is received as gift or inheritance after marriage.
In this case, each spouse is required to pay tax on one-half of income arising from community property and full tax on income from separately held property.
Under common law system, a spouse is required to pay tax on his or her actual earnings and property income only.
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