True or False questions 1. Debt, leverage, equity, and a loan are all similar words that describe when money is borrowed to buy a property. 2. Depreciation for federal income taxes purposes is a paper loss. That is, it is a deduction for tax purposes but it is not a true cash outlay. 3. Interest is the return of the investment from a lenders perspective and therefore a cost of doing businesses and deductible for tax purposes. 4. All things equal, if a lender is willing to give an investor a higher loan to value ratio (LTV) they likely view the property as less risky.