FSU REE4204 EXAM 3 SIRMANS
QUESTIONS WITH CERTIFIED
ANSWERS – UPDATED!!
Depreciation is defined as a _______________ but not a cash outlay.
a. cash expense
b. tax deductible expense
c. production cost
d. part of your cash flow
e. none of the above - Answer-B
Residential income property is depreciated over:
a. 15 years
b . 3 0 years
c. 39 years
d. 27.5 years
e. 20 years - Answer-D
Tax law changes that would affect the value of real estate include:
a. changes in marginal rates (bracket rates)
b. changes in depreciation allowance
c. changes in capital gains rates
d. all of the above - Answer-D
Factors that affect the value of tax savings from depreciation include:
a. amount of depreciation
b. acceleration of depreciation
c. the marginal tax rate
d. all of the above - Answer-D
The Tax Act of 1993 raised the marginal tax rates on ordinary income to:
a. 28%
b. 39.6%
c. 51.8%
d. 42.5% - Answer-B
, A test that determines if the original issue discount (OID) rules apply is the:
a. time value of money test
b. adequacy of interest test
c. risk-return test
d. a and b
e. b and c - Answer-D
Loan discount points:
a. lower the effective yield to the lender
b. raise the effective yield to the lender
c. have no effect on the effective yield but raises the contract rate
d. none of the above - Answer-B
Generally, the capital loss limitation rule allows taxpayers to offset capital losses
against:
a. ordinary income
b. capital gains
c. passive gains
d. portfolio income - Answer-B
Income from a limited partnership is classified as:
a. active
b. passive
c. portfolio
d. deferred - Answer-B
For a real estate partnership investment the "at-risk" amount is:
a the investor's cash contribution
b tax basis of any property contributed
c. non-recourse debt borrowed from the partnership
d. a plus b plus c
e. a plus b - Answer-E
Alternative Minimum Tax rules were established in:
a. 1978
b. 1986
c. 1991
d. 1993
e. none of the above - Answer-A
QUESTIONS WITH CERTIFIED
ANSWERS – UPDATED!!
Depreciation is defined as a _______________ but not a cash outlay.
a. cash expense
b. tax deductible expense
c. production cost
d. part of your cash flow
e. none of the above - Answer-B
Residential income property is depreciated over:
a. 15 years
b . 3 0 years
c. 39 years
d. 27.5 years
e. 20 years - Answer-D
Tax law changes that would affect the value of real estate include:
a. changes in marginal rates (bracket rates)
b. changes in depreciation allowance
c. changes in capital gains rates
d. all of the above - Answer-D
Factors that affect the value of tax savings from depreciation include:
a. amount of depreciation
b. acceleration of depreciation
c. the marginal tax rate
d. all of the above - Answer-D
The Tax Act of 1993 raised the marginal tax rates on ordinary income to:
a. 28%
b. 39.6%
c. 51.8%
d. 42.5% - Answer-B
, A test that determines if the original issue discount (OID) rules apply is the:
a. time value of money test
b. adequacy of interest test
c. risk-return test
d. a and b
e. b and c - Answer-D
Loan discount points:
a. lower the effective yield to the lender
b. raise the effective yield to the lender
c. have no effect on the effective yield but raises the contract rate
d. none of the above - Answer-B
Generally, the capital loss limitation rule allows taxpayers to offset capital losses
against:
a. ordinary income
b. capital gains
c. passive gains
d. portfolio income - Answer-B
Income from a limited partnership is classified as:
a. active
b. passive
c. portfolio
d. deferred - Answer-B
For a real estate partnership investment the "at-risk" amount is:
a the investor's cash contribution
b tax basis of any property contributed
c. non-recourse debt borrowed from the partnership
d. a plus b plus c
e. a plus b - Answer-E
Alternative Minimum Tax rules were established in:
a. 1978
b. 1986
c. 1991
d. 1993
e. none of the above - Answer-A
