Real Estate Investments

Question 1

The exchange of a property for another property of like kind without paying taxes is called a(n)

Answer 1

1031 exchange

Question 2

If the properties being received in a 1031 exchange are worth less than the property being exchanged then the investor will receive a “__”

Answer 2

boot

Question 3

___ is a subjective analysis of a piece of real estate for investment purposes, which, combined with fair market value, helps an investor decide whether or not to include the particular property in their investment portfolio.

Answer 3

Intrinsic Value

Question 4

The steps to actions by a real estate syndicate include all, except:

Answer 4

Depreciation

There are three steps to the action of a syndicate:
Origination
Operation
Liquidation

Question 5

“Real property assets” include all of these, except:

Answer 5

Appliances

Question 6

Real estate investors in agricultural or undeveloped land in the direction that the growth an area is moving toward are frequently referred to as:

Answer 6

speculators

Question 7

For long-term investments in real-estate, the tax law favors investors by giving them a favorable tax rate known as the __ exchange

Answer 7

1031

Question 8

Nonresidential real property encompasses things like warehouses, office buildings, storefronts, and other properties that are not residential and are expected to have a usable life:

Answer 8

of more than 27.5 years.

Question 9

Investors, whose primary interest in acquiring an investment property is in doing so for tax purposes, should consult with:

Answer 9

A qualified CPA, tax attorney, or both