NO.PZ2018053101000039
问题如下：
Which of the following relates to a benefit when owning real estate directly?
选项：
A.Taxes.
Capital
requirements.
解释：
A is correct. When owning real estate directly, there is a benefit related to taxes. The owner can use property non-cash depreciation expenses to reduce taxable income and lower the current income tax bill. In fact, accelerated depreciation and interest expense can reduce taxable income below zero in the early years of asset ownership, and losses can be carried forward to offset future income. Thus, aproperty investment can be cash-flow positive while generating accounting losses and deferring tax payments. If the tax losses do not reverse during the life of the asset, depreciation-recapture taxes can be triggered when the property is sold. B is incorrect because the large capital requirement is a major disadvantage of investing directly in real estate.
C is incorrect because a disadvantage for smaller investors who own real estate directly is that they bear the risk of portfolio concentration.
RT
