Quiz 17 Part 6

According to the tax code, when executing a 1031 exchange, an owner is required to purchase what type of property?

What is the geographical requirement for a newly purchased property to qualify for a 1031 exchange?

Which section of the Internal Revenue Code (IRC) allows for an exclusion on capital gains tax at the sale of a primary residence?

The annual net income of a property is $154,000, with a taxable income of $105,000. What is the allowable annual depreciation for the property?

Which type of properties can benefit from a 1031 exchange?

What major accounting method recognizes revenues and expenses at the time physical cash is actually received or paid out?

Which formula accurately determines realized gains?

Using the straight-line depreciation method, over how many years do income-producing residential properties depreciate?

When selling a property, what type of gain is subject to tax?

According to the Taxpayer Relief Act of 1997, to realize the $250,000 - $500,000 tax exemption at the sale of their property, for how many years must a homeowner have lived in the residence within the past 5 years?

Under which Act was the Low-Income Housing Credit (LIHC) established?

To calculate the amount of taxes due on a property, what number is the tax rate multiplied by?

If the sale price of a property is $1,500,000 and the adjusted basis is $600,000, what is the taxable gain?

Short-term capital gains apply to assets owned for what maximum period of time?

If the annual net income for a property is $218,000 and the taxable income is $156,000, what is the allowable annual depreciation of the property?

Mark owns a single-family residence. Using the straight-line depreciation method, what is the theoretical economic life of Mark's property?

Which of the following is NOT considered a depreciable asset?

Which method of depreciation breaks down a property into various components and determines the depreciation on each component separately?

Which method of calculating depreciation assumes that an asset will lose an equal amount of value each year?

What term describes a monetary gain resulting from the increase in the market value of an investment, excluding capital additions?

Given the following criteria, what is the Adjusted Basis on a property? Original Purchase Price: $500,000, Capital Improvements: $89,000, Depreciation: $184,000

Which of the following is NOT included in operations income?

Under the Taxpayer Relief Act of 1997, up to how much can a single filer qualify for in tax exemptions?

What term refers to the periodic expensing of an asset over the property's theoretical economic life?

At what tax rate is short-term capital gains taxed?

How is the depreciable basis for a single-family residence calculated?

Which of the following assets is NOT depreciable?

Which of the following formulas correctly determines the Adjusted Basis on a property?

Which Act raised the bottom tax rate from 11% to 15%?

When depreciation is subtracted from net income to determine a property's taxable income, depreciation is considered a what?

A commercial building is sold for $1,200,000. The original purchase price was $800,000, and during its ownership, $150,000 in capital improvements were made. If accumulated depreciation totaled $100,000, what is the realized gain on the sale?

An investor wants to defer capital gains taxes by utilizing a 1031 exchange. What criteria must the replacement property meet?

A property has a net operating income (NOI) of $80,000. If the property is financed with a mortgage that has annual payments of $30,000, what is the before-tax cash flow?

What is the primary goal of cost segregation in real estate investment?

A real estate investor is considering purchasing a property in a designated Opportunity Zone. What is a potential tax benefit of investing in an Opportunity Zone?

A property owner converts a portion of their primary residence into a rental unit. Which expenses can they deduct on their tax return?

Which of the following is a characteristic of a capital expense?

Which of the following best describes the concept of 'tax basis' in real estate?

An investor sells a commercial property for $900,000. The selling expenses are $50,000, and the adjusted basis is $600,000. What is the amount of the recognized gain?