CCIM 101 - FINANCIAL LATEST
ANALYSIS EXAM
A REIT must distribute what percent of its taxable income to
stockholders every year? - ANSWERS-90%
True or False: a REIT is subject to corporate-level tax on the taxable
income it distributes to stockholders. - ANSWERS-False. A REIT must
pay out at least 90% of its taxable income as dividends. Since those
dividends are actually the taxable portion of the income generated by the
REIT-owned properties, the company is able to pass its tax burden to
shareholders rather than pay Federal taxes itself.
What is Section 1231 property? - ANSWERS-Section 1231 property is
real or depreciable business property (such as a commercial building)
held for more than one year.
A section 1231 gain from the sale of a property is taxed at the lower
capital gains tax rate versus the rate for ordinary income. If the sold
property was held for less than one year, the 1231 gain does not apply.
The basis for a property that is purchased equals the purchase price plus
what? - ANSWERS-Plus any capitalized acquisition costs (not financing
costs.)
Purchase price + acquisition costs = [XXXX] basis - ANSWERS-
Original (acquisition) basis
END OF
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, CCIM 101 - FINANCIAL LATEST
ANALYSIS EXAM
The portion of basis allocated to improvements or personal property is
called what? - ANSWERS-Depreciable basis
The goal of a cost segregation study is what? - ANSWERS-To use the
engineering reports of a property to segregate assets into personal
property, land improvements, buildings and land categories, with the
objective of identifying assets that can be depreciated over a shorter tax
life. (See 5.12 in coursebook)
For cost-recovery purposes, residential property is defined as property in
which people live for [XXXX] or more days at a time and where no
substantial services (such as healthcare, which would be commercial)
are provided. - ANSWERS-30 days
In mixed-use properties, if the Gross Rental Income (GRI) from the
residential portion is less than [XXXX]% of the total income collected,
the property is treated as commercial. - ANSWERS-80%
The class life (depreciation period) of residential real estate
improvements is how long? - ANSWERS-27.5 years (or 3.636%/p.a.)
END OF
PAGE 2
ANALYSIS EXAM
A REIT must distribute what percent of its taxable income to
stockholders every year? - ANSWERS-90%
True or False: a REIT is subject to corporate-level tax on the taxable
income it distributes to stockholders. - ANSWERS-False. A REIT must
pay out at least 90% of its taxable income as dividends. Since those
dividends are actually the taxable portion of the income generated by the
REIT-owned properties, the company is able to pass its tax burden to
shareholders rather than pay Federal taxes itself.
What is Section 1231 property? - ANSWERS-Section 1231 property is
real or depreciable business property (such as a commercial building)
held for more than one year.
A section 1231 gain from the sale of a property is taxed at the lower
capital gains tax rate versus the rate for ordinary income. If the sold
property was held for less than one year, the 1231 gain does not apply.
The basis for a property that is purchased equals the purchase price plus
what? - ANSWERS-Plus any capitalized acquisition costs (not financing
costs.)
Purchase price + acquisition costs = [XXXX] basis - ANSWERS-
Original (acquisition) basis
END OF
PAGE 1
, CCIM 101 - FINANCIAL LATEST
ANALYSIS EXAM
The portion of basis allocated to improvements or personal property is
called what? - ANSWERS-Depreciable basis
The goal of a cost segregation study is what? - ANSWERS-To use the
engineering reports of a property to segregate assets into personal
property, land improvements, buildings and land categories, with the
objective of identifying assets that can be depreciated over a shorter tax
life. (See 5.12 in coursebook)
For cost-recovery purposes, residential property is defined as property in
which people live for [XXXX] or more days at a time and where no
substantial services (such as healthcare, which would be commercial)
are provided. - ANSWERS-30 days
In mixed-use properties, if the Gross Rental Income (GRI) from the
residential portion is less than [XXXX]% of the total income collected,
the property is treated as commercial. - ANSWERS-80%
The class life (depreciation period) of residential real estate
improvements is how long? - ANSWERS-27.5 years (or 3.636%/p.a.)
END OF
PAGE 2
