1.Using corporations to own rental real estate may provide certain tax benefits. All of the following are benefits of owning real estate in the corporate form, except:

A.Owner's identity may be kept secret.

B.Corporate ownership may limit the liability of its owners.

C.Corporate ownership may permit borrowing at higher interest rates than if owned as an individual.

D.Corporate ownership always provides tax savings.

Question 22.56 pts

Which of the following statements is false:

Mortgage insurance premiums accrued or paid during 2018 are deductible as qualified residence interest.

Generally, a non-corporate taxpayer may not deduct personal interest.

Investment interest is not personal interest.

Qualified residence interest is not personal interest.

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Question 32.56 pts

Under the IRC definition of a "qualified residence," which of the following is not correct?

A taxpayer may deduct home mortgage interest on more than one residence.

A qualified residence is a strict statutory term not based on mere circumstances and the intent of the taxpayer..

A qualified residence can be a boat.

A taxpayer may treat a residence under construction as a qualified residence even though the taxpayer does not live in the residence while under construction.

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Question 42.56 pts

Which of the following statements is true?

A qualified residence cannot be a recreational vehicle.

A taxpayer may only treat a home under construction as a qualified residence for two years, and then only if the taxpayer uses it as his or her residence once it is ready for occupancy.

A taxpayer borrows the amount for the down payment for the purchase of his home on his unsecured credit card (credit card cash advance). The taxpayer will be able to deduct the interest on this credit card as qualified mortgage interest because the proceeds are traceable to the purchase of his home.

The amount a taxpayer can deduct for home mortgage interest is unlimited.

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Question 52.56 pts

Which of the following statements is false?

When deductible, the interest tracing rules require that the proceeds from home equity debt be used to acquire or improve the residence in order for the interest thereon to be deductible.

The interest tracing rules require interest expense to be allocated in the same manner in which the proceeds from the loan are used to pay the various types of expenditures.

Acquisition Indebtedness is debt that is incurred to acquire, construct, or improve a qualified residence.

By statutory definition, both home equity debt and acquisition debt must be secured by the taxpayer's residence.