Which of the following is/are suitable for an IPO:

A) Corporation

B) REIT

C) Master Limited Partnership

D) A and C

E) All of the above.

Code Sec. 1237 provides that if there is no other substantial evidence that a taxpayer holds real estate primarily for sale to customers in the ordinary course of business, the taxpayer is not considered a real estate dealer holding it primarily for sale merely because the taxpayer has subdivided the tract into lots or parcels and engaged in advertising, promotion, selling activities, or the use of sales agents in connection with the sale of lots in the subdivision.

A developer who buys a farm for $1 Million and subdivides it into one hundred buildable lots, and improves the property with road, water and sewer at a cost of $500,000 and sells the property to a home builder for $2 Million eighteen months later, generates what type of income?

A) Passive income.

B) Portfolio Income

C) Ordinary Income.

D) Long Term Capital Gain.

E) Short Term Capital Gain.

Which of the following is a true statement with respect to Sale Leaseback Financing?

A) In a typical sale-leaseback, the owner of property sells the property to an investor and immediately leases the property back.

B) Leasing transactions can serve as a substitute for traditional financing.

C) The lease in a sale-leaseback is usually a net lease that assures the investor a return over and above the cost to him of financing the purchase of the property from the seller-lessee.

D) All of the above.

E) None of the above

Which of the following sentences below regarding a security deposit is correct?

A) The lessee may deduct a security deposit as rent when paid if the deposit is to be returned at the end of the lease.

B) If the lessor may apply the security deposit against rent owed by the lessee, the lessee may deduct the deposit as rent when it is paid at the inception of the lease.

C) If the lessor is restricted in the right as to use the funds for his or her own purposes, a security deposit is taxable to the lessor on receipt.

D) A security deposit is not includible in income if it is to be returned to the lessee on lease termination even if the lessor is not required to account to the lessee for the principal amount of the payment and interest.