Which of the following is not a test to deduct business expenses:

a.The expense must be ordinary and necessary

b.The expense must be lavish and extravagant

c.The expense must be reasonable

d.The expense must have a legitimate business purpose

Which of the following is classified as nontaxable income?

a.Welfare payments

b.Income from real estate rental property

c.Unemployment compensation

d.Dividend income

e.None of these choices are correct.

Partnership capital gains and losses are allocated separately to each of the partners.

True

False

Child support payments are deductible by the spouse making the payments.

True

False