CA Real Estate Finance Course » 2021 » Sec 9 Unit 4 Exam

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Question #1
What type of investment strategy is most similar to a 1031 tax-deferred exchange?
A.   Rolling over funds from one IRA into another
B.   Buy and hold
C.   Fix and flip
D.   Wholesaling
Question #2
Which of the following is a reason a seller might consider selling his property through an installment contract rather than a traditional sale?
A.   The seller is not subject to fair housing requirements if he sells the property through an installment sale.
B.   The buyer in an installment transaction is likely to have better credit than a buyer in a traditional sale.
C.   The seller may pay less in capital gains taxes if he receives the proceeds from the sale over time rather than in a lump sum.
D.   The seller owes no property taxes as long as the property is under an installment sale contract.
Question #3
Jose is an investor who found and closed on an investment property, then decided to sell a property other than the one originally marked for the exchange. What is this an example of?
A.   A fix and flip
B.   A buy and hold
C.   A reverse tax-deferred exchange
D.   A fickle investor
Question #4
Which section of the Internal Revenue Code allows the owner of real property to sell that property, then reinvest the proceeds in a “like-kind” property and defer paying any capital gains taxes?
A.   360
B.   1030
C.   1031
D.   180

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