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23 Cards in this Set
- Front
- Back
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Industry rules allow a maximum total compensation of ____% of the gross proceeds of the offering in a limited partnership |
10% |
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Major disadvantage to a limited partner in a DPP is |
Lack of liquidity |
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The largest deduction generated by a DPP in real estate is ______ |
Depreciation |
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Recapture is ____ a benefit of a limited partnership |
Not |
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A DPP in real estate does NOT have what characteristic |
Cash dividends |
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A limited partner would be in jeopardy of losing her limited liability if the partner |
Assisted in the decision of which properties to acquire |
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General partners always get paid out_____, and secured creditors_____ |
Last, first |
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Oil and gas |
Depletion |
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Real estate |
Not depletion |
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Depreciation is a _____ cash expense |
Non cash expense |
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Wildcatting is also known as |
Exploratory |
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A general partners minimum participation in profits and losses is |
1% |
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Structured products consist of two components: |
Fixed income note and derivative |
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A limited partner is considered accepted into a LP when the general partner |
Signs and approves the subscription agreement |
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Recapture |
Tax benefits that have been previously taken should be paid back to the government |
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General partners are allowed to _____ money to their partnership |
Lend |
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If a limited partnership declares bankruptcy, _____ get paid out before ______ |
Creditors gets paid before partners |
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What DPP has the highest profit potential? |
Wildcatting/ exploratory |
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How is cash flow calculated |
Revenues - Expenses
plus depreciation |
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In a DPP, a tax credit reduces the customers taxes _____ |
Directly |
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In a DPP, a tax credit reduces the customers taxes _____ |
Directly |
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In a DPP, a tax ______ will reduce a customers taxable income |
Deduction |
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In a DPP, a tax _______reduces the customers taxes directly |
Credit |
