An Important Piece of Criteria for Investors to Consider When

Multiple Choice

An important piece of criteria for investors to consider when deciding between real estate investment opportunities and investing in stocks or bonds is the effect of income taxes on their return. For most investors, the effective tax rate on commercial real estate is:

A) greater than the effective tax rate on a stock or bond investment
B) equal to the effective tax rate on a stock or bond investment
C) less than the effective tax rate on a stock or bond investment
D) cannot be compared across asset classes.