D Question 40 1.82 pts 40. If the principal purpose of holding a parcel of land is for sale to customers in the ordinary course of business, the gain on the sale of the land is a capital gain. -'\"' True -'\"' False Question 42 1.82 pts 42. The ownership of a rental property or properties, in which a taxpayer materially participates in the production of the rental income, could constitute a trade or business under Section 1231 qualifying the properties for capital gain treatment upon their sale under that Section rather than Section 1221. True False Question 43 1.82 pts 43. A developer who had been selling lots in the regular course of business could receive capital gains treatment for the sale of the remaining land in several sales or one sale because of an unanticipated event, such as a condemnation. True False ' Question 44 1.82 pts 44. Under the Internal Revenue Code, as a general rule, losses from the rental of real estate can be set off against a taxpayer's other income, such as salary, interest, dividends and active business income. True ' False D Question 45 1.82 pts 45. After passage of the 1986 Tax Reform Act, a real estate investor who obtains nonrecourse purchase money nancing from his seller, or whose loan otherwise fails to qualify as qualied nonrecourse nancing, is able to write off losses on his investment only to the extent of the amount he has at risk his invested cash plus debt on which he is personally liable. True False 48. Under Section 1031 a personal residence or an automobile used solely for personal purposes will qualify for a tax-free exchange. -' True False I Question 49 1.82 pts 49. Under Section 1031 property received in an exchange will not qualify for non-recognition if it is acquired for resale. True False I Question 50 1.82 pts 50. An exchange of city real estate for a ranch or farm may qualify as a "like-kind" exchange. True -' False - HUEblIUII 3' 1.04 pts 52. Under the Installment Sales Revision Act of 1980 (Le, to qualify for the installment method of reporting gain under Section 453), there is no limit on the amount of the down payment in an installment sale. True False I Question 53 1.82 pts 53. To qualify for installment sales treatment in a sale of real property, at least two installment payments are required to be received, each in different tax years. I Question 54 1.82 pts 54. The installment method of reporting gain on sales of real property cannot be used by dealers in real property. 3" True 7" False I Question 55 1.82 pts 55. In some jurisdictions, unpaid assessments of condominium and homeowners association dues have priority over rst mortgage lienholders upon foreclosure on the subject property. 7\" True -'\"' False