10. (Tor F) The holding period describes the length of time that an asset is held. If the holding period is less than 12 months, a taxpayer cannot get a preferential capital gain tax rate. 11..(Tor F) When real estate property is acquired, a portion of the adjusted tax basis may be allocated to the value of the leasehold interests acquired. 12..(TorF) A Section 1031 exchange can be accomplished when the taxpayer acquires the new like kind property before selling the relinquished property. 13. (I or F) One of the requirements to treat a transaction as a nontaxable Section 1031 exchange is that the property must be held for investment, for productive use in a trade or business or as ler property held for sale to customers in the ordinary course of a trade or business. 14. (Tor F) Allocation of the cost of real estate between land, building and each item of personal property is generally based on the relative fair market value of each asset acquired. 15. (I or F) A lower tax rate on long term capital gains is only available if property is held for longer than 12 months. 16. (I or F) An individual who directly owns real estate and earns net rental income for the tax year January 1 - December 31, 2018 will have an effective tax rate of 29.6% on it. 7 17. (T or F) A like-kind exchange can be accomplished, with no intermediary, when a taxpayer sells a property, receives cash proceeds and reinvests the money into a new property. 18.11 or 5 Personal property can qualify as like-kind property in a Section 1031 exchange