Which of the following is not a consequence of the transfer of the mortgaged property by the mortgagor to the mortgagee in satisfaction of the mortgage debt:

A) Satisfaction of the mortgage debt is not treated as a sale of the mortgaged property and the mortgagee treats the loss as a bad debt.

B) If the mortgage debt is greater than the mortgagors basis for the property, the mortgagor realizes a gain, regardless of whether the mortgagor is personally liable on the debt.

C) The mortgagee realizes a loss when the mortgaged property is accepted in satisfaction of the mortgage debt if the value of the property is less than the mortgagees basis for the debt.

D) Code Sec. 1001 may require the mortgagor to recognize income from the discharge of indebtedness in the case of a recourse mortgage which exceeds the fair market value of the property.

E) None of the above.

Which of the following does not qualify as a dwelling unit and as residential rental property with a 27.5 year recovery period?

A) The Domain apartment building at UMD.

B) A resort condominium rented 305 days a year and owner occupied for 31 days.

C) A Marriot hotel

D) All of the above qualify as residential rental property.

E) None of the above qualify as residential rental property.

A disadvantage of using a Sub S corporation to invest in real estate is which of the following:

A) The number of investors is limited to 100.

B) A shareholders basis in an S Corporation does not include their portion of non-recourse debt

C) The restriction of issuing only one class of securities.

D) Inclusion of a foreign national as a Shareholder terminates the S Corporations status.

E) All of the above.