True/False

1. There is a clear demarcation line between tax avoidance and tax evasion. 2. National revenue collections serve as a window for monitoring social change. 3. On a joint return, a spouse is liable for the tax on only his or her separate income. 4. A joint return may be filed even though one spouse has no income. 5. Rents received in advance must be included in gross income when received. 6. No gain or loss is recognized on transfers of property between spouses. 7. Exclusions from gross income are the same as deductions from gross income. 8. In some cases, 100 percent of social security benefits will be included in the recipient's gross income. 9. Interest on state and municipal bonds is included in gross income. 10. In the case of a deceased employee, up to $5,000 of employer paid death benefits can be excluded from gross income by a beneficiary. 11. Business bad debts are deducted as short-term capital losses. 12. MACRS deductions cannot be claimed for used property. 13. Commuting expenses are deductible for AGI. 14. Under the cash method of accounting, all cash payments are deductible expenses