1.

Which of the following is a true statement?

A. Congress allows self-employed taxpayers to deduct the employer portion of their selfemployment tax.

B. To deduct expenses associated with any profit motivated activity taxpayers must maintain a high level of involvement or effort in the activity throughout the year.

C. Business activities never require a relatively high level of involvement or effort from the taxpayer.

D. All business expenses are deducted for AGI.

E. All of these are true.