Section 1031 of the Internal Revenue Code Permits Investors to Defer

question 10

Multiple Choice

Section 1031 of the Internal Revenue Code permits investors to defer some or all of the taxable gain that would ordinarily be due on the sale of a property if they exchange for "like-kind" property. In order to avoid income taxes, many investors attempted to make use of this tax code when disposing of commercial real estate assets. This led to the reemergence of which of the following forms of ownership in commercial real estate?

• A) General Partnership
• B) Limited Liability Company
• C) Tenancy-in-common
• D) Limited Partnership

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Definitions:

Price Ceiling

A legally established maximum price that can be charged for a good or service.

Minimum Wage Law

Legislation that sets the lowest hourly rate that can be paid to workers, aimed at ensuring a minimum standard of living for employees.

Demand Schedule

A diagram indicating the volume of a good or service buyers intend and can afford to buy across a range of prices.

Demand Increased

A situation where consumers are willing and able to purchase more of a good or service at any given price level, often leading to higher prices.