Karen has a net operating loss in 2019. What is the earliest year to which Karen can carryback or carry forward the net operating loss? a. 2018 b. 2017 c. 2021 d. 2020 e. 2016 Which of the following is not true about capital assets? a. Individual taxpayers may deduct net capital losses of up to $3,000 per year. b. Capital losses may be carried back for 3 years to offset capital gains in those years. C. Net long-term capital gains are granted preferential tax treatment. d. Real property used in a trade or business is not a capital asset. e. Shares of stock held for investment are capital assets. Donald owns a two-family home. He rents out the first floor and resides on the second floor. The following expenses attributable to the total building were incurred by Donald for the year ended December 31, 2019: Real estate taxes Mortgage interest Utilities $1,800 1,600 1,200 1,400 Repairs (first floor) Painting (second floor) 400 In addition, the depreciation attributable to the entire building would be $2,000. What is the total amount of the expenses that Donald can deduct on Schedule E of Form 1040 (before any limitations)? a. $4,000 b. $4,700 C. $3,300 d. $3,850 e. None of these choices are correct. Eugene and Velma are married. For 2019, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns. They have no deductions for adjusted gross income. Velma's itemized deductions are $14,200 so she is going to itemize. Eugene's itemized deductions are $4,000. Assuming Eugene and Velma do not live in a community property state, what is Eugene's taxable income? a. $12,800 b. $21,000 XC. $26,000 d. $18,000 e. None of these choices are correct