1.( T or F ) An individual who directly owns real estate and earns net rental income for the tax year January 1 – December 31, 2018 will have an effective tax rate of 29.6% on it. 2.( T or F ) Jumbo LLC, is treated as a partnership and is owned by 50% by two individuals, Rod and Tom. Jumbo LLC acquired Bighorn Center, an industrial rental property for $2 million and collects rent from tenants. When Bighorn Center’s value increases to $3 million, Jumbo refinances the debt and distributes $500,000 to both Rod and Tom. Rod and Tom treat the $500,000 as ordinary income subject to a 39.6% tax rate. 3.( T or F ) A gain resulting from the sale of REIT shares when that REIT is domestically controlled will not result in any U.S. federal income tax withholding for non-U.S. holders of the REIT stock. 4.( T or F ) A general partnership can be taxed as a corporation if so elected under the check the box rules. 5.( T or F ) An individual investor can own 100% of a REIT. 6.( T or F ) Since dividends are not UBTI, a tax exempt investor will not have UBTI on dividend income when debt is used to purchase the stock that paid the dividend. 7.(T or F) An individual, who qualifies as a real estate professional, can treat a particular rental real estate activity as non-passive even when that individual does not materially participate in the real estate activity. 8.(T or F) Withholding tax to non-US investors on interest income and dividends may be reduced under the terms of a treaty. 9. Assume a building, owned by a REIT, increases in value and the REIT that owns it sells the building for $120 million and then makes a capital gain distribution to its shareholders. Which of the following is true regarding a U.S. individual investor\'s tax treatment: A. The gain on the sale will be taxed at the ordinary income tax rate. B. The gain on the sale will be taxed at the capital gain tax rate. C. There is no tax on the net gain at the shareholder level. D. The tax treatment is the same for the US investor as it is for the foreign investor. E. None of the above. 11. Provide the tax that would be applied for each of the following: 1. Withholding tax on passive-type income (interest, dividends, etc..) for non-US investors with respect to US source income. _______________. 2. Tax imposed on a foreign corporation based on a deemed distribution of US branch operations____________________. 3. Withholding tax on US business income income that is effectively connected with a United States trade or business. ______________. 13. Which of the following would cause the largest problem for an individual who wants to be taxed as a real estate professional (which one would be the most difficult to overcome if an individual wanted to be treated as a real estate professional)? A. The individual owns only rental real estate properties and spends all of his/her time managing them. B. The individual works for herself as a commissioned real estate broker and invests in one rental property on the.