19.) Your friend Pete would like to know what taxes he can deduct as FOR AGI in the current year.

A.) Real Estate taxes paid on his personal residence in the current year.

B.) A portion of the Self-Employment taxes paid in current year.

C.) State and Local Income Taxes.

D.) More than one of the above.

E.) Property taxes paid in current year on rental house he owns and rents for profit reported on Schedule E and not limited under the code.

20.) Tom operates an illegal dog fighting operation and incurred the following expenses or Reductions in his taxable income:

Illegal kickbacks to government officials- 20,000

Illegal bribes to border guards - 25,000

Cost of goods sold- 160,000

Rent Expense - 8,000

Which of the above amounts reduce his taxable income?

A.) $0.

B.) $168,000

C.) None of the choices are correct.

D.) $213,000

E.) $160,000