16. Arthur had gross receipts of $8,000 from his hobby and incurred necessary expenses of $10,000. How much of his incurred expenses may he deduct?

a. $0

b. $2,000

c. $8,000

d. $10,000

17. Helen and Jim itemize deductions when they file their income tax return as married filing jointly. If they paid $14,000 in state and local taxes in 2022, what would be the maximum state and local tax deduction they can take on their federal income tax return?

a. $0

b. $4,000

c. $10,000

d. $14,000

18. Harry sold personal use property for $3,000 that he had purchased for $4,000 and had owned for several years. What tax treatment does he receive with respect to his loss?

a. The loss is deductible as a long-term capital loss

b. The loss is deductible as a short-term capital loss

c. The loss is deductible from ordinary income

d. The loss on the sale of personal use property is non-deductible

19. What limit, if any, applies to the maximum amount of capital loss that may be claimed by a married taxpayer filing separately?

a. $0

b. $1,500

c. $3,000

d. No limit applies to a claimed capital loss regardless of filing status

20. Which of the following would be ineligible to take the standard deduction?

a. Peter, who files as head of household

b. Adrienne, who files as married filing separately and whose spouse itemizes deductions

c. Harry, who claims the qualified business income deduction

d. Shirley, a dependent