| After completing this course, students will be able to: |
| • |
Identify the four Internal Revenue Code tax classifications of assets |
| • |
Determine what tax classification should be applied given a commercial
real estate property type |
| • |
Understand what types of properties allow for cost recovery, capital
gains, capital loss deductions, exchanges and installment sales |
| • |
Identify the conditions under which cost recovery (depreciation) may
occur |
| • |
Calculate depreciable basis given a property's assessed land and improvement
values |
| • |
Determine the varying cost recovery percentages for a property given
the acquisition and disposition dates |
| • |
Identify the three types of income subject to federal taxation and provide
examples for each |
| • |
Describe how income and losses within the three types of income baskets
are treated for tax purposes |
| • |
Describe how passive losses are treated for tax purposes given the Passive
Loss Rule |
| • |
Know the requirements needed for an investor to qualify for the rental
real estate loss allowance |
| • |
Identify who is affected by the Passive Loss Rule |
| • |
Understand the difference between gains and losses from capital assets
and those from 1231 assets |
| • |
Identify the tax treatment for short-term and long-term capital gains
and losses |
| • |
Know how to net capital gains and losses in the portfolio basket |
