1.) Deductions are allowed unless disallowed by a specific provision in the tax law. (T/F)

2.) Payment of expenses by a cash basis taxpayer ensures a current period deduction. (T/F)

3.) Fines paid in the course of carrying on a trade or business generally are deductible. (T/F)

4.) The expenses incurred to investigate the expansion of one's present business are deductible only if the expansion is accomplished. (T/F)

5.) If a vacation home is rented for less than 15 days during a year, all rental income and expenses (other than mortgage interest and real estate taxes) are ignored. (T/F)

6.) Tom participates for 300 hours in Activity A and 250 hours in Activity B, both of which are nonrental businesses. Both activities are active. (T/F)

7.) Kathy, who owns an apartment building, participates for 550 hours in the tax year in managing the activity. Therefore, any loss from the activity will be treated as an active loss that can be offset against active income. (T/F)