4. Anne Able wins a $10,000 lottery prize, but loses $3,000 betting on horse races during year 20x5. Assuming that Anne itemizes her deductions, how will she report the gambling activity on her Form 1040 return? A. Gross income of $10,000; zero deduction B. Gross income of $7,000; zero deduction C. Gross income of $10,000; $3,000 deduction for AGI D. Gross income of $10,000; itemized deduction of $3,000 E. None of the above 5. The IRS takes the position that a taxpayer's tax home, for purposes of determining travel expenses, is at the location of the taxpayer's: A. Principal place of business B. Personal residence C. D. E. Principal place of business or personal residence, whichever results in a lower tax deduction Personal residence if located in excess of 50 miles from principal place of business None of the above