Down options from the top to the bottom:

1) $7,500 / $67,500 / $60,000

2) $7,500 / $60,000 / $67,500

3) An additional 10% / the remainder / an additional 50%

4) Outweighs / Does not outweigh

8. Specifics of real estate investment-Tax liability and leveraging Making Real Estate Investments income investments. Two important benefits to investing in real estate are the abilities to leverage investments and to decrease tax liability. Consider Kim's case: In 2011, Kim has an adjusted gross income from one job of $50,000 (not including any deductions from real estate loss). In addition, Kim owns an apartment building that she rents out throughout the year. The revenues she received from her a hartment building amounted payments for the year. The operating expenses (maintenance, mortgage interest, and so forth) amounted to $90,000 for the year. Her income (before subtracting depreciation expenses) for the apartment building is therefore (her rental income minus her expenses). Her accountant has informed her that the apartment building can be depreciated upto $67,500 for tax purposes in 2011; therefore, she can subtract of the depreciation expense from her rental income (and thus not pay taxes on that amount). If her adjusted gross income were less than $100,000 per year, she could write off of the depreciation amount against her ordinary income. $150,000 at an annual interest rate of 9% to purchase a property costing $210,000. If the property is expected to generate $25,200 per year after expenses, then the benefit from leveraging the investment the cost of paying interest on the loan