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12 Cards in this Set

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Investment Property
is a captial asset and as such, profits are taxed as capital gains and losses are deductible as capital losses.
The ordinary and neccessary business expenses are deductible from rental income, including items such as:...(6 things listed)
maintenace, management fees, advertising, utitlities, property taxes, insurance, etc.
Depreciation is deductible from rental income. Investment property is depreciable on a traight line basis over _____ years for residential and _____ years for commercial and industrial.
27.5
39
Profits from the sale of the property are taxed as capital gains and losses are deductible as a capital loss.
Real Estate Held For Sale
Real Estate Held for sale
Ordinary adn neccessary business expenses are deductible from income.
the property may not be depreciated.
Tax deffered exchanges
A realized gain or loss is tax deferred in an exchange of like kind property held for investement or commercial purposes.
Like kind properties include improved land, unimproved land, farms, and leases for at least 30 years.
the property owner fiancing the sale of their property may use the _______________ ________ to spread a capital gain over a number of years
Installment sales
What part of the installment payments is taxable as capital gain the year received int he amount it exceeds the basis for the payment?
The principal part
On in installment sales is all the interest received taxable as ordinary income?
yes
Information reporting on Real estate transactions requires the closing agent requires the closing agent to report the transaction to the _____ on Form ______
IRS
1099
Who's function is it to give tax advice?
an attorney or accountant, not a licensee
how should a licensee advise their clients regarding tax advice?
the should advise their clients to consult with their tax advisor on real estate tax matters.