Individuals can deduct from active or portfolio income losses of up to $25,000 from real estate rental activities in which they actively participate.

True

False

Individuals can deduct from active or portfolio income losses of up to $25,000 from real estate rental activities in which they actively participate

True

False

Generally, only higher income taxpayers are subject of alternative minimum tax

True

False

In 2015, Juan and Juanita incur $9,800 in legal and adoption fees directly related to the adoption of an infant son born in a nearby state. Over the next year, they incur another $4,500 of adoption expenses. The adoption becomes final in 2016. Which of the following choices properly reflects the amounts and years in which the adoption expenses credit is available.

2015 2016

	a.	None $14,300
	b.	None $13,460
	c.	$9,800 $ 4,500
	d.	$9,800 $ 3,660

Kate has a passive activity with a loss of $40,000. She has active income of $100,000. She also has portfolio income of $20,000.

	a.	Kates income is $100,000.
	b.	Kates income is $120,000.
	c.	Kate's income is $80,000.
	d.	Kates income is $95,000.
	e.	None of the above.