Risk Pooling is the ability to reduce the risk of a unit by making more accurate predictions about a large pool of units

Which of the following is true with respect to the related party rules?

a. Bill sells stock to his sister for a $3,000 loss. Bill can deduct the loss on his tax return. b. A taxpayer's uncle is a related party for purposes of Section 267. c. A disallowed loss on a related party transaction can be used to offset any future gain when the property is sold to an unrelated party. d. Under the constructive ownership rules of Section 267, a shareholder owns 10 percent of the stock owned by a corporation in which he or she is a shareholder. e. None of the above are true.

Which of the following statements is true about the means (income) testing for Medicare?

a. there are strictly enforced income limits that are based on federal standards but may vary slightly by state. b. limits apply to the amount of counted assets individuals can have, but they are routinely overlooked. c. means testing is intended to ensure that only the truly needy get access to Medicare. d. there is an asset test and an income test. e. Medicare is not income tested.