10. The maximum amount of net capital losses individuals may deduct against their ordinary income per year is a. $3,000 b. $5,000 c. Zero, losses are not deductible d. There is no maximum. All losses are allowed to be deducted e. None of these is true Henrietta is a self-employed cosmetic sales person and her husband, Hugo, works full-time as a truck driver for a trucking company. Henrietta paid $600 for cosmetic supplies, and Hugo paid $3,725 for his share of health insurance premiums for Henrietta and himself in a qualified plan provided by the trucking company. Which of the following is a true statement? 11. a. The supplies are deductible for AGI while the health insurance is an itemized deduction b. Both expenditures are deductible for AG c. The supplies are an itemized deduction but the health insurance is deductible for AGI d. Both expenditures are itemized deductions e. Neither of the expenditures are deductible 12. Peter is employed as a hair stylist and his wife, Patty, is a self-employed performing artist. Besides Peter's salary, Peter and Patty own a condo that they rent to their cousin on a monthly basis. This year they paid $1,000 for electric utilities on the condo. Patty also paid self- employment tax of $2,200 and Peter had $6,200 of Social Security taxes withheld from his pay. Patty paid $450 to have their personal income taxes prepared last year. Which of the following is a true statement? a. One-half of Peter's social security tax is deductible from AGI b. The electric bill is deductible for AG c. The self-employment tax is not deductible d. The tax preparation fee and the electric bill are deductible from AGI e. None of these is true