Capital Gain/Loss
A capital gain is an ________ in the value of an asset that gives it a higher value than the cost of buying it
increase
Capital Gain/Loss
When is capital gain realized?
When the property sells for more than it was bought
Capital Gain/Loss
When is a capital loss realized?
When there is a decrease in the value of an asset that gives it a lower value than the cost of buying it
True of False
Mortgage payments, called debt service, are considered an operating expense
False
Mortgage payments, called debt service, are NOT considered an operating expense
Depreciation
Tax law allows owner of residential and low-income investment properties to depreciate a portion of their investment over ______ years
27.5
Depreciation
The owners of nonresidential investment properties may depreciate a portion of their investment over ___ years
39
Depreciation
What are the depreciation schedule on residential and nonresidential properties respectively
27.5 years residential and 39 years nonresidential
