6. A Section 1031 exchange can be accomplished when the taxpayer acquires new like-kind property before selling the relinquished property when using a qualified intermediary and an exchange accommodation facilitator.

True False

7. The allocation of the original tax basis in a single rental property asset acquisition is based on the relative fair market value of land, building, furniture and fixtures and lease intangible assets.

True False

8. The 20% tax rate on long term capital gains is only available if the capital property sold was held for (or had a holding period of) longer than 12 months.

True False

9. Tom holds stock in a public REIT with a tax basis of $10,000, and a fair market value of $500,000. Tom donates the REIT shares to a qualified charitable organization (a Section 501(c)(3) organization). Tom recognizes no taxable gain on the increase in value of the stock and he will get a charitable deduction of $500,000.

True False

10. Smith realized a $500,000 gain on the sale of the building portion of a residential apartment complex that he had placed in service in 1993. Accumulated depreciation on the sold building was $311,800. The $188,200 gain is characterized as unrecaptured Section 1250 gain and is taxed at 25%.

True False