SIE Understanding Products and Their Risks Practice Question 17
Question: 17
Which of the following is a tax benefit of the investment structure of direct participation programs (DPPs)?
Correct Answer: C
Explanation:
C: DPPs have pass-through tax treatment, which avoids double taxation, as occurs with corporate dividends. Choice A, accelerated depreciation, Choice B, exemption of some income from taxation, and Choice D, extended tax reporting deadlines, are not accomplished by using a DPP.
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