What is the correct answer to the Taxation questions from 1 to 7

020 Federal Income Tax Eam2-Fall 2018 he one sterntive thet best completes tnr theqtnps 1) On Form 1040, deductions for adjusted gross income include all of the following except A) home mortgage interest )student loan interest B) net capital losses D) busaness espenses 2 Vanessa ownsa housebsout on Lake Las Vegas that y uses fot 30 days out of the year and rents for 280 days For tax purposes, the houseboat is classified as tax A) as active business against income with no limitations B) a hobby. Expenses All expenses are are nondeductible vacation home. The deduction of expenses is limited to the amount of income generated by the rules D) rental property. Expenses in excess of income may be deducted subject to passive activity 3) To be tax deductible, an expense must be all of the following A) an expense of the taxpayer C) reasonable in amount. B) paid in cash. D) ordinary and necessary 4) Which one of the following is a capital asset? A) automobile used in taxpayer's business D) B and C only ) How long must a capital asset be heldto qualify for long-term treatment? C) automobile held by cardealeror sale B) 6 months D) one year A) same trade date one year from purchase )one year and one day 6) Stella has two transactions involving the sale of capital assets during the year resulting in a STCL of $5,20o and LTCL of $2,400. As a result, Stella can offsetas ) $7,600 of ordinary income. B) $3.000 of ordinary income and have a $2.200 STCL carryforward and $2.400 LTCL carryforward. ) S 3,000 of ordinary income and have a $4,600 STCL carryforward. D) s5,200 of ordinary income and have a LTCL carryforward of $2.,400. 7) Investment interest expense is deductible A) as a deduction for AGI. C) as an offset to net investment income. B) as a capital loss. D) as an itemized deduction