There are no circumstances under which a taxpayer can deduct more than 50 percent of the cost of meals and entertainment.

True

False

A self-employed individual who is eligible to use space in his home for an office cannot deduct CCA on the property.

True

False

Landscaping costs can be deducted in the determination of net business income, even if they involve items that would normally be considered capital assets.

True

False

When a business makes payments that are unreasonable in the circumstances, they cannot be deducted in the calculation of either accounting Net Income or net business income.

True

False

For the hobby farmer, deductible farming losses for a year are restricted to $2,500, plus one-half of the next $30,000.

True

False

Barry Hopper operates a mail order business out of a dedicated space in his home. Which of the following statements is not correct?

A. Barry can deduct a pro rata share of the maintenance costs of his home.

B. Home office costs that are not deductible in a given year can be carried forward for one year only and deducted against income generated from the same business.

C. Barry can deduct a pro rata share of CCA on his home.

D. Barry can deduct a pro rata share of mortgage interest on his home.