Question 1: (Please explain your answer) (Please note all questions are for USA Federal Income Taxation)

Angelica, a practicing attorney, pays tuition to attend medical school. Even though a medical degree involves education leading to a new trade or business, the tuition is deductible.

True or False

Question 2: (Please explain your answer) (Please note all questions are for USA Federal Income Taxation)

Which of the following is not a related party for constructive ownership purposes under 267?

A.

A taxpayer's sister

B.

A taxpayer's husband

C.

A taxpayer's uncle

D.

A taxpayer's son

E.

A corporation owned more than 50% by the taxpayer

Question 3: (Please explain your answer) (Please note all questions are for USA Federal Income Taxation)

Larry has owned and occupied his principal residence for 13 years. In 2018, Larry married Laura, who moved into his house. She has never owned a home. When Larry is transferred by his employer to another city, he sells the house at a realized gain of $400,000. If Larry and Laura file a joint return in 2021, Larry can exclude the realized gain of $400,000 from his gross income under 121.

True or False