CCIM 101 MODULE 5 QUESTIONS WITH
CORRECT ANSWERS
Taxation - correct answer -it is defined by legislative bodies and is made up of tax codes and
laws
Taxation can be summed up with three question - correct answer -. How many of the dollars
going in and out of an investment will be subject to tax?
. How much tax will be owed?
. When will the tax be paid?
Taxable entities - correct answer -. Individuals
. Sole proprietorships
. Corporations (pg 5.6)
How much taxes must a taxable entities pay - correct answer -taxable entities must pay taxes on
the income their real estate investments generate. (pg 5.6)
Pass-through entities - correct answer -. General partnerships
. Limited partnerships
. S corporations
.limited liability companies
. Limited liability partnerships (pg 5.6)
Taxable obligation for pass through entities - correct answer -passes through the business
entities to each partner
, Property tax classification - correct answer -under the tax code, asset are tangible or intangible
or real or personal property
(pg 5.7)
Property tax classification
Personal-use asset - correct answer -held for an owner's private non-business use , such as a
house
(pg 5.7)
Property tax classification
Inventory property - correct answer -held primarily for resale to customer, such as a house a
builder built to sale to the public
Property tax classification
Investor property (irc section 1221) - correct answer -property held for primarily long term
appreciation in values versus current income
Property tax classification
Investor property (irc section 1231) - correct answer -property held primarily to produce income
or use for trade or business, such as a retail store, office building, apartment building or ware
house held as a rental property or user property
(pg 5.)
Calculating tax liability - correct answer -net operating income
- cost recovery
= taxable income
X tax rate(%)
= tax liabilities (savings)
CORRECT ANSWERS
Taxation - correct answer -it is defined by legislative bodies and is made up of tax codes and
laws
Taxation can be summed up with three question - correct answer -. How many of the dollars
going in and out of an investment will be subject to tax?
. How much tax will be owed?
. When will the tax be paid?
Taxable entities - correct answer -. Individuals
. Sole proprietorships
. Corporations (pg 5.6)
How much taxes must a taxable entities pay - correct answer -taxable entities must pay taxes on
the income their real estate investments generate. (pg 5.6)
Pass-through entities - correct answer -. General partnerships
. Limited partnerships
. S corporations
.limited liability companies
. Limited liability partnerships (pg 5.6)
Taxable obligation for pass through entities - correct answer -passes through the business
entities to each partner
, Property tax classification - correct answer -under the tax code, asset are tangible or intangible
or real or personal property
(pg 5.7)
Property tax classification
Personal-use asset - correct answer -held for an owner's private non-business use , such as a
house
(pg 5.7)
Property tax classification
Inventory property - correct answer -held primarily for resale to customer, such as a house a
builder built to sale to the public
Property tax classification
Investor property (irc section 1221) - correct answer -property held for primarily long term
appreciation in values versus current income
Property tax classification
Investor property (irc section 1231) - correct answer -property held primarily to produce income
or use for trade or business, such as a retail store, office building, apartment building or ware
house held as a rental property or user property
(pg 5.)
Calculating tax liability - correct answer -net operating income
- cost recovery
= taxable income
X tax rate(%)
= tax liabilities (savings)
