Real estate Chapter 1

Question 1

27.5

Answer 1

Years of deprecation allowed for residential investors

Question 2

39

Answer 2

Years Of depreciation for commercial investment property

Question 3

Straight line method

Answer 3

Used in depreciation of investment property. Equal amounts over the life of depreciation whether 27.5 or 39

Question 4

Demand, construction cost , interest rates

Answer 4

Factors that affect or drives market and supply and demand

Question 5

Population and it’s characteristics… empty nesters, Gen Z, millennials

Answer 5

Demographics

Question 6

What causes interest rates to rise?

Answer 6

Inflation

Question 7

Property Tax ( ad valorem)
Mortgage Interest
Points w loan
Loan origination fees

Answer 7

Allowed deductions

Question 8

250k

Answer 8

Single taxpayer exemption

Question 9

500k

Answer 9

Married taxpayers exemption

Question 10

Cost of improvements divided by the years allowed. Does not include land values

Answer 10

Depreciation

Question 11

Deferred payment of capital gains tax on sale of business or investment property

Answer 11

1031exchange

Question 12

Cash flow, tax benefits, potential appreciation, principle reduction

Answer 12

Reasons to invest in real estate

Question 13

Value increases over time

Answer 13

Appreciation

Question 14

Cost recovery

Answer 14

Another name for depreciation