1. (T or F) A U.S. corporation that is capitalized with both debt and equity is often used by non-U.S. investors as a vehicle to invest in U.S. real estate.

2. ( T or F ) John purchased land in May 2019; leased it to an unrelated party and then sold the land, subject to the lease, in April 2020. Assume no other activities and the applicability of highest income tax rates. John, an individual taxpayer will be taxed at 20% (the capital gains rate) on the sale, and 29.6% (the ordinary income tax rate) on rental activity on the following.

3. ( T or F ) A REIT is taxable as a corporation that gets the benefit of a deduction for dividends paid.

4. ( T or F ) The portfolio interest exception is a rule that allows non-U.S. persons to invest in certain U.S.-sourced and issued debt obligations without causing the interest income on such debt obligations to be subject to any U.S. tax.

5. ( T or F ) Assuming that it is not pension-held, a tax exempt investor will never have UBTI on dividend income from a REIT.