Texas Principles of Real Estate 2: Chapter 6 Quiz
Straight line depreciation
A method of depreciation under which improvements are depreciated at a constant rate throughout the estimated useful life of the improvement is known as...?
All of the above
Investing in real property includes which of the following...? -Cash flow -Appreciation -Tax savings -All of the above
Capital gains
The profit realized from the sale of real estate or other investments is known as...?
Section 1031 Exchange
This is a section of the U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes...?
27.5
Using the straight line depreciation method, residential property can be depreciated over how many years...?
Appreciation
An increase in value is known as...?
Higher
By using a high amount of leverage to purchase a property, the investor will experience a ........... degree of risk?
Depreciation
The amount of decrease in value of an asset that is allowed in computing the value of the property for tax purposes is known as...?
Leverage
The use of a mortgage when buying an investment property is an example of...?
Leverage
The use of debt financing of an investment to maximize the return per dollar of equity invested is known as...?