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1 pts Question 6 Suppose that you own a single-family home in Provo, UT that you rent to students using a property manager. This is

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1 pts Question 6 Suppose that you own a single-family home in Provo, UT that you rent to students using a property manager. This is the only real estate you own. Your NOI on the property last year was $5,000 and you paid $6,000 in interest on the mortgage. You anticipate cash flows to be similar for the next five years and your marginal income tax rate is 31%. Finally, you anticipate selling the property 5 years hence at which point you will face a depreciation recapture tax rate of 25%. Which of the following is true? You should not take your depreciation allowance because your marginal income tax rate is higher than the depreciation recapture tax rate You should take your depreciation allowance because your marginal income tax rate is higher than the depreciation recapture tax rate O You should take your depreciation allowance because of limitations on passive losses You should not take your depreciation allowance because of limitations on passive losses

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