An Arrangement Where an Owner of Real Property Borrows Money

question 34

Multiple Choice

An arrangement where an owner of real property borrows money from a lender and pledges the real property as collateral to secure the repayment of the loan is known as a(n) ________.

• A) consignment
• B) foreclosure
• C) mortgage
• D) assignment

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Definitions:

Sole Proprietor

An individual who owns and operates a business alone, bearing full responsibility for its debts and liabilities.

Schedule C

A form used by sole proprietors to report their business income and expenses to the IRS as part of their personal tax return.

Form 1040

The standard IRS form that individuals use to file their annual income tax returns, encompassing income, deductions, and credits.

§179 Expense Deduction

The §179 expense deduction allows businesses to deduct the full purchase price of qualifying equipment or software purchased or financed during the tax year, subject to certain limits.