Liberty University BUSI 422 Read & Interact Brueggeman & Fisher Chapter 11
answers new A+
Investment in real estate is considered to be ________.
In 1997, the capital gain tax rate for the portion of the gain due to any increase
in the value of the property was lowered to
A builder of houses would classified as which of the following?
If the marginal tax rate is 28%, the before-tax IRR is 17% and the after-tax IRR is
14%, what is the effective tax rate?
Given a positive tax rate, the before-tax IRR will be _______ the after-tax IRR.
Which of the following is income from a business where the investor does not
actively participate in the operation of the property?
Accumulated deprecation is the depreciation that ________.
The maximum current tax rate on any increase in the value of property as per
tax rules of 2019 is:
Property held by a dealer ______ depreciable for tax purposes.
We would expect the after tax IRR to be _______.
The marginal tax rate is the rate at which ______ income is taxed.
For an after tax analysis, the initial investment should be ________ .
Suppose a 10 year loan has loan fees (points) of $25,000. How much is
amortized each year?
Assume the capital gains tax rate is 15% and the tax rate due to depreciation is
25%. At sale, if price appreciation is $750,000 and accumulated depreciation is
$400,000, what is the total capital gain tax?
The current depreciable life for nonresidential real estate is:
Taxable income is defined as:
An individual who intends to hold real estate for immediate resale is classified as
a(n) _______.
The rate in which additional income is taxed at is the tax rate.
If the sale price is $10,000,000 and the mortgage balance is $7,000,000, the
before tax cash flow at sale is _______.
When do points on a mortgage affect taxable income?
What is the equity dividend rate if you purchase a property for $10,000,000
using $5,000,000 of debt and the before-tax cash flow in year 1 is $500,000?
The current depreciable life for residential real estate is:
Financing costs should be included in the cash flows to the equity investor.
When calculating taxable income, ______.
The rate that makes the present value of the projected cash flows equal to the
initial investment is referred to as which of the following?
Property held by a dealer ______ depreciable for tax purposes.
A major capital investment, such as building a new storage facility, is an example
of a outlay.
At the time of sale, the balance must be paid.
A property management fees will likely be calculated based on?
What is the equity dividend rate if you purchase a property for $11,000,000
using $7,000,000 of debt and the before-tax cash flow in year 1 is $450,000?
Under a lease with an expense stop, the amount of operating expenses paid by
the the owner have which of the following?
NOI less debt service equals _________.
For investors, the future supply and demand are _________.
The IRR is the ________.
Historically, when rental growth increases, occupancy tends to ______?
Which of the following will consistently reduce NOI?
The effective gross income will generally be ______ the net operating income.
Which of the following groups perform market analysis to evaluate an
investment?
A lease that assigns a certain amount of expenses to be paid by the landlord is
said to have an __________.
An investor who focuses on purchasing properties from investors having financial
issues is called:
An investor is interested in which of the following?
Ownership in real estate is ________.
Historically, when occupancy rates decrease, rental growth tends to ______?
The real estate industry tends to be cyclical, also known as the real
estate .
Which of the following are benefits to making equity investments?
Investors and perform market analysis to estimate supply and
demand for a property type.
Funds invested by the person acquiring the property are called _.
An investor who focuses on the part of a property that is not being optimized
follows which investment strategy?
Which of the following are facts about the real estate industry?
