1. Which of the following is NOT a requirement of the 1031 exchange?

1) any cash or personal property received in an exchange is fully taxable in the year of the exchange

2) the properties must be like-kind

3) the properties must be trade or business or investment properties

4) the seller must own a personal residence

2. Before tax cash flow is obtained by

1) Subtracting annual debt service from net operating income.

2) Subtracting operating expenses from net effective income.

3) Subtracting annual debt service from net effective income.

4) Subtracting expenses from net operating income.