Exam 2 Study Guide Materials covered: Ch 6, 7, 9, 11 and 21 Deduction in general: 1) Deduction for AGI, Deduction from AGI or non-deductible; 2) if deductible, how much is the deduction? 1. Workout Q1 Cal. Casualty loss of personal used property - Ch7 practice questions Q1/Q2 2. Workout Q2 Cal. Allowable investor loss- Ch11 comprehensive practice question 3. MC questions: Ch 6 1. Classify each of the following is deductible or not deductible: Trade and business exp, Fines and penalties, Political contribution, Legal expenses Incurred in Defense of Civil or Criminal Penalties, Expenses Relating to An Illegal Business, amounts paid for capital expenditure (e.g. property, plant and equipment); related party loss 2. Tax treatment of investigation cost for new business: engaging in similar business or not 3. Tax treatment of rental real estate activities: Primarily Personal Primarily Rental Personal