QUESTION 50

1. All of the following are characteristics of the US Tax Courtexcept

   		Taxpayers must pay the alleged deficiency and then sue for a refund.
   		Appeal is taken to the US Court of Appeals.
   		A jury trial is not available.
   		The Court accepts only tax cases.
   		The Court has nationwide jurisdiction.

2.5 points

QUESTION 51

1. Georgie has gross income of $5,000 from an activity that has been deemed to be a hobby by the IRS. Her expenses related to the activity include property taxes of $3,000, operating expenses of $1,500, and depreciation expense of $800. What would be Georgie's deductible expenses for the year and where would they be taken?

   		$3,000 Schedule A (Itemized Deductions)
   		$3,000 Schedule C (Profit or Loss from Business)
   		$5,000 Schedule A (Itemized Deductions)
   		$5,000 Schedule C (Profit or Loss from Business)
   		$5,300 Schedule C (Profit or Loss from Business)