Question 58.

All of the following statements regarding rental real estate activities are correct, except for: a) Rental real estate activities are generally considered passive activities. b) Losses from passive activities are subject to the at-risk rules. c) Generally, losses from rental real estate activities cannot be deducted unless a taxpayer has income from other passive activities. d) Rental losses less than $25,000 are not subject to the passive loss rules.

Question 59.

Ronald is a commission driver currently delivering baked goods due to the Coronavirus pandemic; nonetheless, he is still considered a Statutory Employee. Which of the following statements concerning Statutory Employees is not correct? a) This taxpayer category is very limited. b) The employer pays half of Social Security taxes, and the other half is withheld from their pay. c) No federal income tax is withheld from the pay of a Statutory Employee. d) Federal income tax is withheld from the pay of a Statutory Employee; the employee pays all Social Security and Medicare taxes due, and his employer pays none.