Indicate whether the following statements are "True" or "False" regarding the rules designed to limit the tax benefits a taxpayer may obtain from a tax shelter investment.

$1.$The tax benefits associated with tax shelter investments are reduced by the at$-$risk provisions and the passive activity loss rules.

TrueFalse

$2.$The passive activity loss rules only apply to individuals and personal service corporations.

TrueFalse

$3.$A taxpayer's deductible loss from an activity for any taxable year is limited to the amount the taxpayer has at risk at the end of the taxable year.

TrueFalse

$4.$Losses from passive activities that are disallowed in the current year may be carried forward to future years where they may provide a tax benefit.

TrueFalse

$5.$In general, passive activity losses can only offset passive activity income.

TrueFalse