Unit 1 Real Estate Investment Flashcards
1
Q
What is another name for depreciation
A
cost recovery
2
Q
What are capital gains
A
the difference between the initial purchase price and the net selling price
3
Q
What can increase the initial basis of the property causing an increase in the properties tax basis
A
physical improvements
4
Q
What is the property’s adjusted basis for tax purposes
A
the taxation after depreciation is included
5
Q
What is the definition of capital gains including adjusted basis
A
the amount by which the sales price exceeds the property’s adjusted basis is the capital gain.
