3 DPP 2 Flashcards
Risk per industry
oil | real estate
High
to
Low
Oil
- exploratory
- developmental - drill where oil has been found before
- income - existing production
Real Estate
- raw land
- new construction
- existing properties
Pass thru loss
(Y / N)
partnerships
REIT
yes
no
Income Statement (P&L)
50 income
- 20 exp
- 25 int
-20 depreciation
- 15 income
does cash flow
include depreciation?
no
crossover point
when P&L negative becomes 0
depletion
depreciation of natural resources
Objective - Taxes
Raw Land
Oil Explortion
Oil Development
New Construction
Existing Realestate
Existing Oil Production
Raw Land no**“tax” **shelter
Oil Explortion tax shelter
Oil Development tax shelter
New Construction tax shelter
Existing Realestate tax shelter
Existing Oil Production tax shelter
Objective - Growth vs Income
Raw Land
Oil Explortion
Oil Development
New Construction
Existing Realestate
Existing Oil Production
Raw Land capital appreciation
Oil Explortion capital appreciation
Oil Development capital appreciation
New Construction capital appreciation
Existing Realestate income
Existing Oil Production income
