ASREB Exam Prep A-6 (Gray Packet)
Questions And Answers
When a new stock is being offered to the public, this would be offered as a disclosure:
Prospectus
If a party wants to maximize leverage he should: Have the highest loan to value ratio
When a buyer is using 100% leverage in a transaction, they would least likely be interested in a:
Short term loan
Boot is defined as: A Personal property given to make up the difference in equity
Regarding a residential owner occupied property, this would be a deduction on a federal tax
return: Loan interest
Buyer wants to know his cash on cash return. He is most interested in his: Investment
When can an owner of a single family residence depreciate property taxes? If the property
is a rental
You own a duplex and rent one unit. You may: Deduct the expenses only from the rented
unit only
, Property taxes and Interest payments can be: Deducted from your income tax return
Interest and taxes are: tax deductible on your personal residence
Cash on cash returns involve: Leverage
If property is depreciated it must be: Improved
The basis of a personal residence is affected by: A Patio addition (addition to the home)
If a seller conveys property with the idea of completing a tax deferred exchange and designates
the exchange property 25 days after close of escrow the seller has: 45 days to identify the
exchange property at close of escrow
To have a Qualified tax deferred exchange the properties must be: held for investment
When a person sells an income producing property and the taxable gain is being calculated, the
seller is most interested in: Capital improvements
If you were a passive investor in a limited partnership you would be entitled to: 1. K-1 tax
reporting form
2. Annual accounting
Questions And Answers
When a new stock is being offered to the public, this would be offered as a disclosure:
Prospectus
If a party wants to maximize leverage he should: Have the highest loan to value ratio
When a buyer is using 100% leverage in a transaction, they would least likely be interested in a:
Short term loan
Boot is defined as: A Personal property given to make up the difference in equity
Regarding a residential owner occupied property, this would be a deduction on a federal tax
return: Loan interest
Buyer wants to know his cash on cash return. He is most interested in his: Investment
When can an owner of a single family residence depreciate property taxes? If the property
is a rental
You own a duplex and rent one unit. You may: Deduct the expenses only from the rented
unit only
, Property taxes and Interest payments can be: Deducted from your income tax return
Interest and taxes are: tax deductible on your personal residence
Cash on cash returns involve: Leverage
If property is depreciated it must be: Improved
The basis of a personal residence is affected by: A Patio addition (addition to the home)
If a seller conveys property with the idea of completing a tax deferred exchange and designates
the exchange property 25 days after close of escrow the seller has: 45 days to identify the
exchange property at close of escrow
To have a Qualified tax deferred exchange the properties must be: held for investment
When a person sells an income producing property and the taxable gain is being calculated, the
seller is most interested in: Capital improvements
If you were a passive investor in a limited partnership you would be entitled to: 1. K-1 tax
reporting form
2. Annual accounting
