Which of the following statements is false regarding the hobby loss rules?

a. The deduction for expenses related to hobby activities cannot exceed hobby income.

b. Hobby income is included in gross income and hobby-related expenses (other than those deductible elsewhere on the tax return) are miscellaneous deductions subject to the 2% AGI floor.

c. Depreciation is the last expense taxpayers deduct against hobby income.

d. Hobby deductions in excess of hobby income are carried over to offset hobby income in future tax years. e. All of the above statements are true (there are no false statements).