Real Estate Investing Real Estate Investing Real Estate Taxation Questions and Answers 2

Question 1

Which IRS form is used to report rental real estate income and expenses?

Accepted Answer

Schedule E

Answer

Schedule C

Answer

Form 4797

Answer

Schedule D

Question 2

What is the standard depreciation recovery period for residential rental property under MACRS?

Accepted Answer

27.5 years

Answer

39 years

Answer

15 years

Answer

31.5 years

Question 3

In a 1031 exchange, what is the maximum number of days an investor has to identify replacement properties after selling the relinquished property?

Accepted Answer

45 days

Answer

60 days

Answer

90 days

Answer

180 days

Question 4

What tax benefit does cost segregation provide to real estate investors?

Accepted Answer

Accelerated depreciation of certain building components

Answer

Elimination of capital gains tax

Answer

Tax-free rental income for the first five years

Answer

Permanent reduction of property tax assessments

Question 5

Under the passive activity loss rules, how much rental loss can a qualifying active participant deduct against ordinary income?

Accepted Answer

Up to $25,000

Answer

Up to $10,000

Answer

Up to $50,000

Answer

Unlimited

Question 6

What is the depreciation recapture tax rate on Section 1250 gain when selling rental property?

Accepted Answer

25%

Answer

15%

Answer

20%

Answer

28%