Quality Improvement EXAM with 100% correct answers already graded A 2024

In a(n) ________, the tax on the gain or profit of the property is postponed. tax deferred exchange _______ is the profit realized from the sale of a real estate investment. capital gain When an investor disposes of property, a tax on the income or gain incurred because of the depreciation is _____. recaptured depreciation A negative cash flow, called a(n) _______, is sometimes desirable to investors because it provides a paper loss on tax returns. tax shelter The ______ represents the net proceeds after all expenses are met and may be measured before or after taxes are considered. cash flow When tax depreciation is computed, the ________ consists of the price paid for the property and the improvements costs. adjusted basis An increase in property value is _____. appreciation When cash is transferred in a tax-deferred exchange, it is called ____. boot A paper loss for tax purposes is _____. tax depreciation Tax depreciation of a property over a specific time for tax purposes is called ______. straight line depreciation Property taxes may be deducted on the tax return for a(n): a. personal residence b. timeshare c. investment property d. all of the above all of the above A depreciable asset CANNOT be: a. buildings b. personal property c. equipment d. machinery personal property Regarding a second/vocation home, which of the following is TRUE: a. Mortgage interest is not deductible. b. Taxpayers are never eligible for the capital gain exclusion. c. Mortgage interest is deductible up to a certain amount. d. None of the above. Mortgage interest is deductible up to a certain amount. An exchange of property that does not qualify as like-kind property for a tax-deferred exchange is a(n): a. office building for a shopping mall b. apartment house for a tract of land c. office building for an apartment building d. a personal residence for a personal residence a personal residence for a personal residence To qualify for a tax-deferred exchange, how many days does an exchangor have to contract for the replacement property? 45 Under Section 1031 of the US Internal Revenue Code, the exchange of certain types of property may defer the recognition of capital gains or losses due upon sale, and hence defer any capital gains taxes otherwise due is known as...? ATax-Deferred Exchange BTax Shelter CDepreciation DBoot Tax-Deferred Exchange Under the Taxpayer Relief Act of 1997, joint filers can qualify up to how much in tax exemptions...? A$500,000 (Dollars) B$250,000 (Dollars) C$600,000 (Dollars) D$200,000 (Dollars) $500,000 (Dollars) According to the IRS, which of the following property types is NOT considered a permitted deduction on one's tax return...? AIncome producing properties BPrimary residence CTime share DVacant land Income producing properties his Act lowered the top tax rate from 50% to 28%...? ATax Reform Act of 1986 BTax Relief Act of 1997 CTax Reform Act of 1997 DFair Housing Act of 1968 Tax Reform Act of 1986