Answer: c. I, II and IV
Explanation:
A real estate investment trust is a company which owns, and operates real estate while real estate limited partnership (RELP) is a real estate investment whereby several investors use their money to either develop or buy real estate.
Based on the information in the question, the true options are:
• REITs allow for flow through of gain
• RELPs allows for flow through of gain
• RELPs allow for flow through of loss
It should be noted that REITs doesn't allow for flow through of loss while RELP is a tax sheltered investment and therefore it gives room for gain and loss.
