Today's quiz is brought to you by our member Brandon Hall.
Brandon is a real estate investor and CPA specializing in providing business advice and creative tax strategies for real estate investors.
He writes for our blog, and is a great addition to any forum topic he lends his expertise in!
Take his quiz HERE
If you would like to read more about the quiz topics:
Now that was a pretty good quiz. It left out subjective answers.
Well that was embarrassing. I was only at 60% so I need to do some more study. Amazing, there is so much to learn even when you have been at it a while.
We can all improve.
Awesome quiz - very substantive! 8/10; Not too shabby for a newly licensed CPA. Still so much more to learn!
60% -- I have some work to do =)
Account Closed Thanks for taking the quiz!
Depreciation is meant to track the reduction in value over time. This is the Dictionary's and the IRS's definition. Depreciation is also synonymous with cost recover, so it's really semantics.
You do not need written procedures to elect the DMSH (see IRS 1.263(a)-1(f)(1)(ii)(B)). You do need to make an annual election on your returns indicating that you are applying the DMSH for anything under the $2,500 threshold. You do also need accounting procedures, but they do not have to be written, which means you really just need your books to match your returns.
Thanks for reinforcing that I need to learn some more.:) That was a good quiz Hillary and Brandon. I have not been as active on here as I need to be lately. So Thanks.
The aggregate results were eye opening. Don't let the IRS see them, they'll start auditing real estate professionals at an alarming rate.
I don't know them all but my CPA does. :)
I hire people to answer these questions...
Brandon I like your analogy of the rental business.. needing to be a business to scale to really get traction and create long term wealth.
of course there are outliers.. IE buying rentals in Hot parts of the country that have seen massive appreciation is were much of the True wealth is created... pretty hard to build massive wealth on merely leveraged cash flow alone in a non appreciated market.. in those markets you MUST scale to hit those goals.
And I am sure many gasped when you stated 250k a year salary is dime a dozen.. LOL... for anyone in the mid west or a market were average housing is in the 100 to 150k range... just investing in notes and equities or funds.. and or employer matching for 30 years will create a nice retirement for most.
But the thing about this game is there is no retirement .. who wants to retire.. work until you cannot anymore.. but have fun along the way...
@Eric James not sure the stats but its something like 50
% of all new business don't make it 2 to 3 years.. I know I have had a few that cratered over the years. everytime I get disgusted with real estate and venture into something I really had no business doing its never really worked LOL.. I need to stick to what I know .. end of that story.
but I do like to smell the roses along the way... living like a miser through your energetic years 20';s to 50's only to have a wad of dough for your last 20 years when your old and not so energetic.. I will take the have fund along the way route.. you never know when your number is called.. and it would be ashame to amass a lot and never do the things you dreamed of while your young and healthy.. at least my perspective as someone entering the last 1/3 of a life span.
@Jay Hinrichs. I've read in several places the stats that 90% of all new business fail within the first 5 years. Of those that survive 5 years, 90% go out of business within the next 5 years.
I'm fortunate in that I enjoy a simple life, and so don't need to spend a lot of money. I'm also not concerned with creating massive wealth. I want to accumulate enough to pass on to my children to make their lives a bit easier and to give them more choices in life. I'm not against increasing my returns, but I'm not going to go after high risk ventures. To each his own.
BTW I watched and enjoyed your BP podcast.
I love this. I've got a lot to learn.
Finally a quiz written by a pro in his/her field without the subjective questions. Black and white and well written. Nice job @Brandon Hall
8 out of 10. Good quiz! Nice job, @Brandon Hall .
Scored 8 out of 10
I think this is helps us expand is little bit of the context with some content. It shouldn't be used as just a end all but allow for a great opportunity to learn a little more or ask those question to our respective professionals. One of the best thing I heard recently was, "Why didn't you tell me that existed". You Never asked"
I scored a 40% but opened my eyes to possibilities that I can now ask about.
This is a great quiz @Brandon Hall !
Even some questions stumped me initially, which I think is a good thing! But then again I'm not as smart as you ;)
Also composing a quiz myself, so this was a good example of how in-depth some of the correct answers can really be.
70% I have to brush up on a few things. Great quiz. Thanks.
Oh wow, I only made 50%. Then again I have never done a deal, never read the forums(yet), and basically just listen to the podcasts. I have a lot to learn and luckily an amazing BP community to help me with that.
80%, Nice, I learned something new :)
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