What amount of community income must Eduardo and Maria each report on their returns after separation?

Study for the California Real Estate Tax Law Course. Explore multiple choice questions with detailed explanations. Get exam ready today!

In the context of community property laws in California, income earned during a marriage is typically considered community property, meaning it is owned equally by both spouses. When a couple separates, they remain responsible for reporting their community income, even if they are no longer living together.

If Eduardo and Maria earned a total of $30,000 during the period in question, and since they are subject to community property laws, each would report half of that total income on their individual tax returns. This means that they would each report $15,000.

The correct choice reflects this understanding of community income reporting post-separation, highlighting that despite no longer being together, both individuals must account for income generated during the marriage.

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