True and False

1. The U.S. taxes income of U.S. residents and U.S. citizens even if such income is earned in a foreign country.

2. If a taxpayer places only one asset (a building) in service during the fourth quarter of the year, the mid-quarter convention must be used.

3. After the divorce, Jeff was required to pay $18,000 per year in child support. Jeff is allowed a deduction for his child support payments if he provides more than one-half of the child's support.

4. The MACRS depreciation tables automatically switch to the straight-line method when the straight-line method yields a higher annual depreciation amount than the declining balance method.

5. If the business use percentage for listed property falls below 50 percent, the only adjustment is all future depreciation must be calculated under the straight-line method.

6. Taxpayers are required to pay the IRS any tax as a basis for bringing litigation in the U.S. tax court.