Chapter 17 Investment and Business Brokerage

Question 1

cost plus improvements, minus depreciation

Answer 1

Adjusted Basis

Question 2

document transferring ownership of personal property

Answer 2

Bill of sale

Question 3

extra money received by one party in an exchange

Answer 3

Boot

Question 4

increase in value

Answer 4

Appreciation

Question 5

initial cost of real estate

Answer 5

basis

Question 6

law regulating sale and financing of business personal property

Answer 6

Bulk transfer Acct

Question 7

money left from rental income after expenses are paid

Answer 7

cash flow

Question 8

profit on the sale of an asset

Answer 8

capital gain

Question 9

real estate held for rental income

Answer 9

Income property

Question 10

tax deferred mutual transfers of income property

Answer 10

exchange

Question 11

yearly bookkeeping charge for part of initial cost

Answer 11

Depreciation

Question 12

cash flow plus income tax savings plus appreciation

Answer 12

Return

Question 13

direct deduction from income tax due

Answer 13

Tax credit

Question 14

extensive use of borrowed money for purchases

Answer 14

leverage

Question 15

fund making real estate investments and selling shares

Answer 15

Real Estate Investment Trust (REIT)

Question 16

group pooling resources to buy real estate

Answer 16

Real estate investment syndicate

Question 17

a joining together of two of more people to carry out business projects

Answer 17

Syndicate

Question 18

law regulating transfer of business personal property (supplies, machines. etc)

Answer 18

Uniform Commercial Code

Question 19

rate at which investor’s top dollar is taxed

Answer 19

Marginal tax rate

Question 20

refinancing property to buy more

Answer 20

Pyramiding

Question 21

sale in which seller receives purchase price over period of years

Answer 21

installment sale