QUESTION 18 1 In an unforeseen circumstance related to the sale of the taxpayer's principal residence, which gain is pro rated? Only the maximum gain exclusion amount. Only the realized gain amount Both the realized gain and the maximum gain amounts. Neither the realized gain nor the maximum gain amounts. QUESTION 19 1. Where and how do recreational gamblers deduct their gambling losses? As itemized deductions on Schedule A to the extent of the winnings Net them fully against the winnings on page 1 of Form 1040 Fully deductible as itemized deductions on Schedule A Net them against the winnings on Schedule C, but only to the extent of the winning QUESTION 20 1. Which of the following is not true of passive activities? Material participation and active participation mean the same thing Material participation includes working more than 500 hours during the year in the activity A real estate professional must spend more than 750 hours during the year in real estate activities. The $25,000 rental real estate exception may be limited by the taxpayer's adjusted grous income