Under California tax law, which expenses are categorized as investment expenses that can be deducted?

The correct answer identifies expenses that are directly related to generating investment income, which is a key concept in tax law. Under California tax law, a taxpayer can deduct expenses that are incurred in the pursuit of producing taxable income from investment activities. This includes costs such as management fees for investment accounts, custody fees, and other expenses that are necessary to earn that income.

By understanding that investment expenses must be directly connected to producing investment income, it becomes clearer that the other options do not meet this requirement. Personal investments often don't qualify if they do not generate taxable income. General financial planning expenses are typically considered personal expenses, and thus not deductible under investment expenses. Capital losses, while they can affect taxable income, do not qualify as expenses; rather, they represent losses from the sale of investments that can potentially offset other capital gains.

Recognizing the necessity of the direct link between expenses and income generation helps in efficiently managing one’s investment-related deductions when preparing taxes.