Consumer Protection Investment CA (no answers) 29. The net operating income is $24,000. The cost is $300,000. The cap rate would be: 30. The cash invested is $40,000. The cash flow before tax is $2,800. The cash on cash is: 31. The definition of a capital asset is that the benefits will extend beyond one year and it is ______. 32. GDP stands for ______. 33. The definition of Gross Domestic Product is the total amount of goods produced, and services provided, in a country during a ________ year period. 34. GDP is often used as an indicator of ______, as well as a gauge of a country’s standard of living. 35. Investors are very concerned about negative GDP, which is one of the factors economists often use to determine whether an economy is ______. 36. Within the _______ day period before the conditional permanent residence expires, the investor must submit evidence documenting that the required investment has been made and that 10 jobs have been maintained, or 10 jobs have been created or will be created within a reasonable time period. 37. The EB-5 Program reached capacity for the first time in ________ when the State Department stopped issuing EB-5 visas until the beginning of the next fiscal year, October 2014. 38. When buying a home in the United States, foreign buyers often pay cash because ______. 39. Hard money lenders charge a _______ interest rate for a perceived _______ risk. 40. Hard money loans are usually granted by ________. 41. What is the percentage of creditors that use FICO scores to determine credit worthiness? 42. A person’s FICO score is actually ______ scores, each with a specific purpose. 43. In order to be considered as having “bad” credit, a person must have a general FICO credit score of ______ or below. 44. Homebuyers with excellent credit often obtain interest rates ____ those buyers with poor credit. 45. Joe has a high balance on his Citibank credit card. In order to get his spending under control, he closes the account, but continues to make monthly payments. What will happen to his overall credit score? 46. When buying a home, a borrower with excellent credit can often afford a _______ home with ________ payments. 47. Sally always pays the entire balance on her Macy’s, Neiman Marcus, Target, Home Depot, Lowe’s, Sears, or Best Buy card, but her credit score is only in the “good” range. What could be the cause? 48. A person’s credit score is primarily based upon information dating back _____ months. 49. Appropriate uses for a family’s emergency fund would be to _________. 50. Joan has a number of revolving credit accounts. While she keeps her balances low, she often makes double payments and then skips a month while she is away for business. As a “road warrior,” she is often away from home for two months at a time. What should she consider to avoid damaging her credit? 1. Which of the following would not be a motivation for doing an exchange? 2. Which of the following would not be considered of like-kind property? 3. FIRPTA refers to _______. 4. An example of an exchange for the purposes of management relief might be _______. 5. Which of the following would be a safe harbor rule for doing a delayed exchange? 6. Which is a reason why advisors recommend that taxpayers hold property for a minimum of at least 24 months? 7. The scope of “like-kind” in personal property would be considered: 8. Property within the United States could be exchanged for property in _______. 9. All of the following would be considered an interest in real property except: 10. In Revenue Procedure 2008-16 (Vacation Home Guidance): During the qualifying use period, the taxpayer’s personal use of the dwelling unit cannot exceed the greater of __ days or 10 percent of the number of days during the 12-month period the dwelling unit is rented at a fair rental. 11. Investment properties may include which of the following? 12. If you think of investment real estate as a money machine, the main parts of the machine are: 13. If any one of the three parts of an investment property (income, expenses or _______) changes, the investment value of the property changes. 14. The financial benefits of owning investment real estate include: 15. How important is it for investors to use accurate/realistic income and expenses when analyzing a rental property? 16. If the annual rent is $22,000 and the vacancy $2,000, the gross operating income is: 17. The “Float and Desire” method is also called 18. Which of the following is depreciated over a 27.5-year period? 19. All of the following are operating expenses except: 20. If the net operating income is $15,000 and the annual debt service is $12,500, the cash flow before tax is: 21. Cost recovery is another term for: 22. Which of the following is depreciated over 15 years? 23. Which of the following is depreciated over 5 years? 24. Which of the following is not depreciated? 25. If the gross operating income is $40,000 and the operating expenses are $18,000, the NOI is: 26. The “ingredients” for the “Float and Desire” method include: 27. The “Float and Desire” worksheet is used to: 28. Cash flow before tax divided by cash invested is the formula for:
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a. $35,000.
b. not enough information to calculate.
c. 8%.
d. None of the answers shown
a. 9%.
b. 1%.
c. 7%.
d. None of the answers shown
a. Not bought or sold in the usual course of business
b. Bought or sold in the usual course of business
c. Not tangible
d. Not moveable
a. General Domestic Product
b. Gross Domestic Product
c. Gross Dedication Product
d. General Domestic Property
a. One
b. Two
c. Three
d. Four
a. Foreign policy
b. The economic health of a nation
c. Racial composition of the economy
d. Population decreases
a. In a recession
b. Showing a population decrease
c. Showing a population increase
d. Gaining in political strength
a. 90
b. 75
c. 60
d. 30
a. September 2014
b. January 2013
c. August 2012
d. August 2014
a. It’s a much easier and quicker process
b. Foreign buyers can never get loans in the U.S.
c. Foreign buyers can never get loans in their county
d. It is required in the U.S.
a. Higher, higher
b. Higher, lower
c. Lower, higher
d. Lower, lower
a. Private investors
b. Private companies
c. Either of the answers shown
d. Neither of the answers shown
a. 100%
b. 95%
c. 90%
d. 85%
a. 9
b. 29
c. 39
d. None of the answers shown
a. 580
b. 600
c. 610
d. 618
a. The same as
b. Significantly lower than
c. Higher than
d. Significantly higher than
a. It will continue to improve as the balance is paid off
b. It will not change, because there is no impact in closing an account with a balance as long as he continues to pay the monthly payment
c. It will go down because his overall available credit will decrease, while the balance still exists
d. Nothing, because it is not possible to close an account with an open balance
a. More expensive / higher payments
b. Less expensive / lower payments
c. More expensive / lower payments
d. Larger / higher payments
a. Number of open accounts
b. No balance on the cards
c. No payment history on the accounts
d. All of the answers shown
a. 12
b. 24
c. 36
d. 48
a. Take a vacation
b. Pay for a new water well
c. Buy new furniture
d. Finish the basement in their home
a. Call up her creditors and explain the situation
b. Pay her bills monthly via the internet on or before the due date
c. Keep on doing what she is doing because it is not hurting her credit
d. Close the accounts
a. Consolidation
b. Management relief
c. Estate planning
d. Cashing out of real estate
a. Improved real estate for unimproved real estate
b. Office building for retail center
c. Real property for personal property
d. Mexican gold coins for Austrian gold coins
a. Withholding rules applicable to foreign seller of U.S. property
b. Section 1031 rules
c. State withholding for non-resident
d. Classification of types of business assets
a. Multiple rental properties for single-user commercial property
b. Apartment building for single family rental properties
c. Triple-net leased property for farmland
d. Mineral rights for water rights
a. The use of a “Qualified Intermediary”
b. Hiring an attorney
c. Residing in the residence any two of the last five years
d. Using a real estate broker
a. It is a rule in the tax code
b. IRS stated that 2 years is a sufficient holding period in a private letter ruling
c. The property would qualify for short-term capital gains treatment
d. To get the best possible offer in selling the property
a. Narrow
b. Broad
c. Irrelevant
d. Undefined
a. India
b. France
c. Any foreign country
d. Guam
a. Building materials
b. Oil and gas royalties
c. Easements
d. Leasehold interest
a. 7
b. 21
c. 24
d. 14
a. Apartment buildings
b. Shopping centers
c. Rental houses
d. All of the answers shown
a. Income
b. Expenses
c. Financing
d. All of the answers shown
a. financing
b. employment
c. demand
d. none of the above
a. Cash flow before tax
b. Principal reduction
c. Tax Savings
d. All of the answers shown
a. Not important
b. Slightly important
c. Very important
d. None of the answers shown
a. $20,000
b. $10,000
c. $15,000
d. $24,000
a. Power Finance Method
b. Hires Theory
c. Band of Investment Theory
d. Negative Asset Method
a. Residential building
b. Shopping centers
c. Land improvements
d. Gas stations
a. Painting
b. Insurance
c. Mortgage payments/debt service
d. Repairs
a. $500
b. $1,500
c. $2,500
d. $3,000
a. a stay in the hospital.
b. depreciation.
c. stock market losses.
d. None of the answers shown
a. Land
b. Building
c. Personal property
d. Land improvements
a. Land
b. Building
c. Personal property
d. Land improvements
a. Land
b. Building
c. Personal property
d. Land improvements
a. $58,000.
b. $9,400.
c. $22,000.
d. $500.
a. net operating income.
b. down payment.
c. cash on cash required.
d. All of the answers shown
a. determine the homeowner (owner occupied) value of a property.
b. determine the investment value of a property.
c. determine the gross weight of a property.
d. determine the location of a property.
a. price per unit.
b. cash on cash.
c. cap rate.
d. gross multiplier.