Question 132 As a hobby, Eric carves wooden plaques and sells them to friends and acquaintances. He has done this for five years. This past year was the first time he has ever made a profit. When does the IRS classify his hobby as a business?

a) Only when and if he chooses for it to become a business. b) If he makes a profit for any 1 of the past 5 years, including the current year. c) If he makes a profit for any 2 of the past 7 years, including the current year. d) If he makes a profit for any 3 of the past 5 years, including the current year.

Question 112

For tax years 2018 through 2026, which of the following expenses are deductible on Schedule A? a) Dues and professional expenses. b) Educator expenses. c) Licenses and regulatory fees. d) Home equity loan

Question 16

A taxpayer was transferred by his (civilian) employer from Miami to Los Angeles in 2020 and received $19,000 as reimbursement for his moving expenses. Generally, which tax treatment does this reimbursement receive (best option)?

a) The taxpayer receives the moving expense reimbursement entirely tax-free. b) The moving expense reimbursement is taxable to the taxpayer as income. c) The reimbursement payment made by the taxpayers employer is not deductible. d) The reimbursement payment is considered a non-charitable gift and subject to gift taxes.