Which of the following statements is true regarding unreimbursed expenses for education for employees: Tuition reduction plans can result in taxable income to the employee. Are deductible if necessary to meet the legal requirements of a new job. Excludes qualification exam fees from deductibility Are deductible if promoted to better job upon completion. none of these are true. An activity considered a hobby and thus expenses not deductible, however the presumption is rebuttable if the activity shows a profit three out of the five of the previous years (the threshold is reduced to two years instead of three if the activity involves horses) the burden of proof of a non- trade or business shifts to the IRS. True False