ASREB Exam Questions With Solved
solutions
When can the tax on a capital gain be deferred? - ANSWER>>In a Property
exchange
Tax depreciation on your personal residence is NOT: - ANSWER>>Considered and
income tax deduction
A real estate investment that acts as a mutual fund but does not give you
individual ownership is: - ANSWER>>A Real estate investment trust (REIT)
a security instrument
When figuring the capital gain from the sale of a property, this would lower your
gain: - ANSWER>>Capital improvements
When a new stock is being offered to the public, this would be offered as a
disclosure: - ANSWER>>Prospectus
If a party wants to maximize leverage he should: - ANSWER>>Have the highest
loan to value ratio
When a buyer is using 100% leverage in a transaction, they would least likely be
interested in a: - ANSWER>>Short term loan
Boot is defined as: - ANSWER>>A Personal property given to make up the
difference in equity
Regarding a residential owner occupied property, this would be a deduction on a
federal tax return: - ANSWER>>Loan interest
, Buyer wants to know his cash on cash return. He is most interested in his: -
ANSWER>>Investment
When can an owner of a single family residence depreciate property taxes? -
ANSWER>>If the property is a rental
You own a duplex and rent one unit. You may: - ANSWER>>Deduct the expenses
only from the rented unit only
Property taxes and Interest payments can be: - ANSWER>>Deducted from your
income tax return
Interest and taxes are: - ANSWER>>tax deductible on your personal residence
Cash on cash returns involve: - ANSWER>>Leverage
If property is depreciated it must be: - ANSWER>>Improved
The basis of a personal residence is affected by: - ANSWER>>A Patio addition
(addition to the home)
If a seller conveys property with the idea of completing a tax deferred exchange
and designates the exchange property 25 days after close of escrow the seller has:
- ANSWER>>45 days to identify the exchange property at close of escrow
To have a Qualified tax deferred exchange the properties must be: -
ANSWER>>held for investment
When a person sells an income producing property and the taxable gain is being
calculated, the seller is most interested in: - ANSWER>>Capital improvements
solutions
When can the tax on a capital gain be deferred? - ANSWER>>In a Property
exchange
Tax depreciation on your personal residence is NOT: - ANSWER>>Considered and
income tax deduction
A real estate investment that acts as a mutual fund but does not give you
individual ownership is: - ANSWER>>A Real estate investment trust (REIT)
a security instrument
When figuring the capital gain from the sale of a property, this would lower your
gain: - ANSWER>>Capital improvements
When a new stock is being offered to the public, this would be offered as a
disclosure: - ANSWER>>Prospectus
If a party wants to maximize leverage he should: - ANSWER>>Have the highest
loan to value ratio
When a buyer is using 100% leverage in a transaction, they would least likely be
interested in a: - ANSWER>>Short term loan
Boot is defined as: - ANSWER>>A Personal property given to make up the
difference in equity
Regarding a residential owner occupied property, this would be a deduction on a
federal tax return: - ANSWER>>Loan interest
, Buyer wants to know his cash on cash return. He is most interested in his: -
ANSWER>>Investment
When can an owner of a single family residence depreciate property taxes? -
ANSWER>>If the property is a rental
You own a duplex and rent one unit. You may: - ANSWER>>Deduct the expenses
only from the rented unit only
Property taxes and Interest payments can be: - ANSWER>>Deducted from your
income tax return
Interest and taxes are: - ANSWER>>tax deductible on your personal residence
Cash on cash returns involve: - ANSWER>>Leverage
If property is depreciated it must be: - ANSWER>>Improved
The basis of a personal residence is affected by: - ANSWER>>A Patio addition
(addition to the home)
If a seller conveys property with the idea of completing a tax deferred exchange
and designates the exchange property 25 days after close of escrow the seller has:
- ANSWER>>45 days to identify the exchange property at close of escrow
To have a Qualified tax deferred exchange the properties must be: -
ANSWER>>held for investment
When a person sells an income producing property and the taxable gain is being
calculated, the seller is most interested in: - ANSWER>>Capital improvements
