chapter24 - MULTIPLE CHOICE QUESTIONS - CHAPTER 24 1. When...

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MULTIPLE CHOICE QUESTIONS - CHAPTER 24 1. When a real estate investment is operated by three general partners who are fully liable for its operating profits and losses and it is jointly owned with several other partners who share no responsibility for its profits and losses, this form of ownership is called a a. general partnership. b. limited partnership. c. real estate equity trust. d. real estate mortgage trust. 2. A real estate investor generally requires higher returns on his investment than he would accept on a savings account because a. banks have more risk. b. the real estate investment has a low risk factor. c. the real estate investment has a higher degree of risk. d. real estate investments are generally short term. 3. Advantages of real estate as an investment include all of the following EXCEPT a. the possibility of making a future tax-deferred exchange. b. the use of leverage to increase rate of return. c. avoiding taxes on the profits. d. the possibility of equity build up. 4. Under the Tax Reform Act of 1986, which of the following is NOT a requirement to qualify a person as a real estate professional and, therefore, not subject to the passive loss limitations? a.
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This note was uploaded on 01/16/2009 for the course REAL 1301 taught by Professor Murray during the Fall '07 term at Blinn College.

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chapter24 - MULTIPLE CHOICE QUESTIONS - CHAPTER 24 1. When...

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