in the current year, Kenny had a $35,000 loss from a real estate rental activity. Kenny performed 1,000 hours of services for that activity, which is more than half of his working hours for the year. If he is a material participant, Kenny can deduct the $35,000 loss. True False

Paul owns and actively participates in the operations of an apartment building which produced a $40,000 loss during the year. He had AGI of $150,000 from an active business. He may not deduct $25,000 of the loss. True False

A deduction is allowed for the partial worthlessness of a nonbusiness bad debt. True False

If uninsured business property is not completely destroyed, the amount of the deduction is still always the adjusted basis of the property. True False