Fsu REE4204 Exam 3 questions with verified
answers
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 - ✔✔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% - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔B
Income from a limited partnership is classified as:
a. active
b. passive
, c. portfolio
d. deferred - ✔✔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 - ✔✔E
Alternative Minimum Tax rules were established in:
a. 1978
b. 1986
c. 1991
d. 1993
e. none of the above - ✔✔A
The major changes incorporated in the Tax Reform Act of 1986 were:
a. lengthening the period of depreciation
b. defining real estate income as passive income
c. lowering the top marginal tax rate
d. all of the above
e. a and b - ✔✔D
"Boot" refers to:
a. cash
b. non-like-kind property
c. relief of debt
d. all of the above
e. a and c - ✔✔D
Section 1031 limits the amount of personality included in an exchange to
______________________ of the aggregate value of the replacement property:
a. 15%
b. 18%
c. 20%
d. 25%
e. none of the above - ✔✔D
Passive loss limitation rules allow active participants in a real estate investment to offset
up to _________________ of income from other classes:
answers
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 - ✔✔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% - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔B
Income from a limited partnership is classified as:
a. active
b. passive
, c. portfolio
d. deferred - ✔✔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 - ✔✔E
Alternative Minimum Tax rules were established in:
a. 1978
b. 1986
c. 1991
d. 1993
e. none of the above - ✔✔A
The major changes incorporated in the Tax Reform Act of 1986 were:
a. lengthening the period of depreciation
b. defining real estate income as passive income
c. lowering the top marginal tax rate
d. all of the above
e. a and b - ✔✔D
"Boot" refers to:
a. cash
b. non-like-kind property
c. relief of debt
d. all of the above
e. a and c - ✔✔D
Section 1031 limits the amount of personality included in an exchange to
______________________ of the aggregate value of the replacement property:
a. 15%
b. 18%
c. 20%
d. 25%
e. none of the above - ✔✔D
Passive loss limitation rules allow active participants in a real estate investment to offset
up to _________________ of income from other classes:
