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Terms in this set (553)

For an investor seeking a tax sheltered investment, the primary advantage of a real estate direct participation program is the:

ability of the program to generate losses for tax purposes but provide positive cash flow

All of the following will decrease the tax basis of a limited partnership interest

cash distribution from the partnership

principal repayment of recourse debt by the partnership

distributive share of partnership loss

The "basis" is the theoretical value of the investment in the partnership. The "basis" amount establishes the limit of tax deductions that may be taken by the partner - so the larger the basis, the better it is for the partner.Cash contributions and assumption of debt will increase the basis (more money going into the partnership investment). In addition, each partner's "distributive" share of income increases the basis (this is income that is retained in the partnership that has not physically been sent to the partner).Cash distributions and pay down of debt by the partnership reduce the basis (this is cash being paid out of the partnership). In addition, each partner's "distributive" share of losses decreases the basis (these are losses that are retained in the partnership that have not physically been sent to the partner).

Variable annuities are non-fixed unit investment trustsIII Variable annuities are regulated under the Securities Act of 1933 and the Investment Company

A closed end fund has a Net Asset Value of $10 per share. The minimum price at which the shares can be purchased is:

market price plus a commission