A business gift with a value of $35 presented to a client and his nonclient spouse is fully deductible by the donor.

True

False

Choose the correct statement. Passive losses

a.May not be used to offset passive income.

b.If unused are lost forever.

c.May be used to offset portfolio income.

d.Can offset portfolio income like dividends and interest

e.Often result from the rental of real estate.

Which of the following is excluded from gross income?

a.Prizes

b.Hobby income

c.Rental income

d.Scholarships for tuition

e.All of these choices are included in gross income.