CTC Real Estate Tax Strategies 2

Question 1

In a 1031 like-kind exchange, how many calendar days does a taxpayer have to identify potential replacement properties after closing on the relinquished property?

Accepted Answer

45 days

Answer

60 days

Answer

90 days

Answer

180 days

Question 2

What is the total time allowed under IRC Section 1031 to complete a like-kind exchange by receiving the replacement property?

Accepted Answer

180 days from the transfer of the relinquished property

Answer

45 days from closing

Answer

One year from identification

Answer

90 days from the identification period

Question 3

Under IRC Section 121, what is the maximum gain exclusion on the sale of a primary residence for a married couple filing jointly?

Accepted Answer

$500,000

Answer

$250,000

Answer

$1,000,000

Answer

$750,000

Question 4

What is the depreciation recapture tax rate that applies to gains attributable to Section 1250 straight-line depreciation on real property (unrecaptured Section 1250 gain)?

Accepted Answer

25%

Answer

15%

Answer

20%

Answer

28%

Question 5

What primary tax benefit do Qualified Opportunity Zone (QOZ) fund investments offer to taxpayers who invest capital gains?

Accepted Answer

Temporary deferral of gain, potential step-up in basis, and exclusion of appreciation after 10 years

Answer

Immediate exclusion of all capital gains

Answer

Conversion of capital gains to ordinary loss deductions

Answer

Permanent exclusion of gain up to $1 million

Question 6

When a rental property is sold for a gain, what tax treatment applies to the portion of gain attributable to depreciation previously deducted on personal property components (Section 1245 property)?

Accepted Answer

Recaptured as ordinary income up to depreciation claimed

Answer

Taxed at unrecaptured Section 1250 rate of 25%

Answer

Excluded if held more than one year

Answer

Treated as long-term capital gain

Question 7

Which installment sale provision under IRC Section 453 provides a key tax benefit for real estate sellers?

Accepted Answer

Spreading gain recognition over the years payments are received, deferring the tax liability

Answer

Converting ordinary income to capital gains on the sale

Answer

Eliminating depreciation recapture on the sold property

Answer

Allowing a deduction equal to the mortgage balance at sale