A lease transaction may be characterized by the IRS as a financed sale transaction if the lease provides:

A) The lessee acquires equity or title to the leased premises through the lease payments after the required number of lease payments have been made.

B) The lessees total lease payments are prorated over the life of the lease, even though the total payments are insufficient to cover the amount required to purchase the asset.

C) The lease payments substantially exceed the fair rental value of the property indicating that the transaction is financed over less than the life of the asset and the property will be acquired by the lessee at the end of the lease term for a nominal sum.

D) A and C

E) All of the above.

Which of the following is a false statement?

A) A Taxpayer may make a sale or exchange of property in order to establish a loss and reduce income from other sources.

B) A taxpayer is not allowed to park desired replacement property with an accommodation party until the taxpayer arranges for the transfer of the relinquished property to the ultimate transferee in a simultaneous or deferred exchange under Code Section 1031.

C) Where the sale of property results in a loss between related parties listed in Code Sec. 267(b) no deduction is allowed for that loss.

D) Non-recognition of gain or loss under Code Sec. 1031 is not available for any exchange which is part of a transaction or series of transactions structured to avoid the purpose of the related party rules.

E) Code Sec. 267(a)(2) prevents the mismatching of expense and income that would otherwise occur when an accrual method taxpayer pays a deductible expense to a related cash method taxpayer.

Which of the following is a false statement?

A) A Taxpayer may make a sale or exchange of property in order to establish a loss and reduce income from other sources.

B) A taxpayer is not allowed to park desired replacement property with an accommodation party until the taxpayer arranges for the transfer of the relinquished property to the ultimate transferee in a simultaneous or deferred exchange under Code Section 1031.

C) Where the sale of property results in a loss between related parties listed in Code Sec. 267(b) no deduction is allowed for that loss.

D) Non-recognition of gain or loss under Code Sec. 1031 is not available for any exchange which is part of a transaction or series of transactions structured to avoid the purpose of the related party rules.

E) Code Sec. 267(a)(2) prevents the mismatching of expense and income that would otherwise occur when an accrual method taxpayer pays a deductible expense to a related cash method taxpayer.

Under MACRS the statutory recovery period for residential rental property is:

A) 15 years

B) 27.5 years

C) 30 years

D) 39 years

E) None of the above