QUESTION NO 16:

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 NO 21:

Jill became disabled after a car accident a few years ago. She is a seamstress and is fortunate her employer has allowed her to continue to work from home. Jill is wondering if she qualifies as a Statutory Employee due to the strict tax guidelines. Which of the following occupational groups fails to meet the qualifications of a Statutory Employee?

a) Agent drivers or commission drivers limited to those who distribute meat, vegetables, fruit, baked goods, beverages (other than milk products), or laundry and dry-cleaning services. b) Individuals who work at home for one employer making clothing, needle crafts, bedspreads, etc. c) A traveling salesperson who sells for one principal employer. d) Real estate agents.