Unit 1: Commercial, Industrial and Income Property

What's another term for a trade fixture?

Chattel

Sheryll is a licensee who works for Adamson Properties. She is responsible for managing two six-unit apartment buildings. She currently has one vacancy but showed the apartment yesterday and the tenant is bringing her security deposit by later today. What does Sheryll need to do with the check the tenant gives her?

Deposit it into an escrow account.

Raymond and Jean own a shoe store in a rented space in a suburban strip mall. They've decided to move to less expensive retail space, and so are packing up their inventory for the move. Their son Brandon helps them remove the wall-based shelving units, making sure not to damage the walls in the process. The shelving units are ________.

Considered trade fixtures

The terms of a commercial tenancy are defined by ______.

The lease

John wants to do a 1031 tax exchange with a property he just sold. How many calendar days does he have to identify a new property for the exchange?

45

Rhonda purchased an existing pet store in her neighborhood, and she's so excited! Her animal-loving aunt is thrilled for Rhonda but disappointed that she won't be able to visit the store in her wheelchair, as the aisles are narrow and there isn't enough room to move around. What is true about Rhonda's responsibilities to her aunt and other people with disabilities?

Since Rhonda purchased an existing building and business, the ADA requirements aren't as strict as with new construction and vary by building.

Julius sold one of his investment properties and used the proceeds of the sale to invest in some equipment for one of his other businesses. Can he defer the capital gains taxes on the sale of the investment property?

No, because the purchase was not a like-kind property.

What advantage does the 1031 tax-deferred exchange offer?

It allows investors to defer capital gains taxes when selling a property, provided they buy another property.

Which of these should tenants keep in mind regarding trade fixtures?

Installation and removal should not cause damage to the property.

The sales price, acquisition costs, and capital improvement costs (such as renovations or additions) of a property combine to make up what?

Basis