Answer the following statements true (T) or false (F)
1. Expenses incurred in connection with conducting a trade or business activity or in connection with production of income are generally deductible, but personal expenses are generally not deductible.
2. A deduction will be allowed for an expenditure unless the Internal Revenue Code specifically disallows it.
3. Itemized deductions are deductions for AGI.
4. According to the tax formula, individuals can deduct the greater of for AGI deductions or from AGI deductions.
1. TRUE
Personal expenses, unless specifically permitted by an IRC section, are not deductible, but expenses associated with generating business income or with the production of income generally are allowed.
2. FALSE
Deductions are not allowed unless the statute allows for them.
3. FALSE
Itemized deductions are deductions from AGI.
4. FALSE
Individuals can always deduct for AGI deductions, but they will choose the greater of itemized deductions or the standard deduction for their from AGI deductions.
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Indicate whether the statement is true or false