8. Land Value subtracted from total cost of an office building is important to get your amount of depreciation. How do you estimate land value for your CPA and the IRS? a) 20% of 100% of the value b) Hire an appraiser c) Put the value in the contract d) Local tax assessor office valuation e) All or none of the above 9. How many years straight-line should you depreciate a shopping center buildings (minus land value of course)? a) 27.5 b) 31.5 c) 18.5 d) 50 e) None of the above 10. If you get a carried interest of 10% in a deal your investment group bought for $100,000 cash, leased for $800/month and sold for $200,000 net proceeds, in one year, what is your total share of cash received earned for the year? (No commission) a) $10,960 b) $20,960 c) $30,960 d) $30,860 e) Not enough information 11. If you, as an individual, form a corporation (S-Corp) to do your deals this: a) Is a bad ownership form b) Is a bad idea, double taxation problem c) Income and deductions flow to you directly d) All of the above e) None of the above 12. We owe $500K on a property worth $300K. Our limited partnership all vote to default on a loan/mortgage (give up on the investment), what bad things can happen to the shareholders? a) They lose their investment/equity down payment and payments made b) They can each write-off the capital loss at $3,000/year as a loss carry forward c) They could each get a 1099 for their percentage share of the debt cancellation as ordinary income that year from the bank d) All of the above e) None of the above 8. Land Value subtracted from total cost of an office building is important to get your amount of depreciation. How do you estimate land value for your CPA and the IRS? a) 20% of 100% of the value b) Hire an appraiser c) Put the value in the contract d) Local tax assessor office valuation e) All or none of the above 9. How many years straight-line should you depreciate a shopping center buildings (minus land value of course)? a) 27.5 b) 31.5 c) 18.5 d) 50 e) None of the above 10. If you get a carried interest of 10% in a deal your investment group bought for $100,000 cash, leased for $800/month and sold for $200,000 net proceeds, in one year, what is your total share of cash received earned for the year? (No commission) a) $10,960 b) $20,960 c) $30,960 d) $30,860 e) Not enough information 11. If you, as an individual, form a corporation (S-Corp) to do your deals this: a) Is a bad ownership form b) Is a bad idea, double taxation problem c) Income and deductions flow to you directly d) All of the above e) None of the above 12. We owe $500K on a property worth $300K. Our limited partnership all vote to default on a loan/mortgage (give up on the investment), what bad things can happen to the shareholders? a) They lose their investment/equity down payment and payments made b) They can each write-off the capital loss at $3,000/year as a loss carry forward c) They could each get a 1099 for their percentage share of the debt cancellation as ordinary income that year from the bank d) All of the above e) None of the above
