Question 5

Another good way to reduce your income tax liability for the year is to max out your Roth IRA contributions.

True

False

Question 6

For a given calendar year, your capital gains in one investment can be offset dollar for dollar with capital losses in some other investment. If your capital losses for the year exceed your capital gains, you have a net capital loss. However, the maximum net capital loss for a calendar year that can be deducted from you AGI, for tax purposes, is $3,000.

True

False