1. Real estate taxation is subject to all the Internal Revenue Code as say insurance companies.

True or False?

2. C Corporations are the preferred way to own real estate

True or False?

3. All real estate companies, whether partnerships, C or S Corporations or sole-proprietorships must be on the accrual basis of accounting

True or False?

4. For real estate, the taxpayer cannot elect to pick MACRS or Straight-line depreciation.

T/F?

5. For real property passive activity losses, an individual can only take passive losses against passive income

T/F?

6. An individual can offer a perspective purchaser a zero-interest installment sale loan, and he or she will not be required to apply the below market interest rules of the I.R.C

T/F?

7. A meat company needs to seal their basement after it comes to their attention that oil is seeping up from the ground since a new oil company next store started drilling for oil. The company rebuilds the basement with new walls, linings and pumps. The company can deduct the costs as an ordinary and necessary business expense

T/F?