Chapter 18 - Real Estate Investment Flashcards
1
Q
Two of the rewards that investments offer are
A
income and tax benefits.
2
Q
Which of the following is true of the tax treatment of a principal residence?
A
The owner may be able to avoid capital gain tax when the property is sold.
3
Q
As a general rule, in deriving taxable income on an investment property, it is legal to
A
deduct interest payments from income.
4
Q
An investor invests in fifteen diversified bond funds. This is an example of an investment in
A
debt.
