In 2021, Cecilia invested in the stock market. She had $10,000 of net investment income and incurred $3,000 in qualified expenses related to her investment in the stock market. Her Federal Adjusted Gross Income and her California Adjusted Gross Income are $30,000. Which of the following is true regarding the amount of itemized deductions that Cecilia can take for investment expenses?

Group of answer choices

$0 allowed for both her Federal Income Tax Return and California State Income Tax Return.

$0 allowed for her Federal Income Tax Return. $2,400 allowed for her California State Income Tax Return.

$3,000 allowed for her Federal Income Tax Return and $3,000 allowed for her California State Income Tax Return.

$0 allowed for her Federal Income Tax Return, and $3,000 allowed for her California State Income Tax Return.

Answer rating: 100% (QA)

Option 4 0 allowed for her Federal Income Tax Return and 3000 ... View the full answer