00:01
Okay, in this problem we have which of the following is not an example of an investment property? so an investment property.
00:09
Let me go ahead and write that down.
00:11
Investment property.
00:14
All right, so let's think about this.
00:15
An investment property, right? what is it? it's something that you obviously you own.
00:20
It's a property that you own that you have invested in and the key word is that it does not supply goods or services, right? it doesn't provide, does not provide goods or services, all right? that's the key.
00:39
Property doesn't provide goods or services, right? so if you use it for rental purposes or for appreciation, doesn't provide goods or let me finish that writing before i keep thinking or speaking, goods or services.
00:52
So if it is used to charge rent or to collect rent or if it's used to appreciate, right? that its value appreciates over time, then it is an investment property, okay? so it's something that you own that you use to collect rent or to get capital appreciation, okay? now, do any of these or all of these not fail or not hold up to that, right? so let's look at a, the machine held for rental purposes.
01:24
So let's just suppose i have, you know, a crane.
01:27
I'm a business and i have a crane so that i can rent it out.
01:30
That is an investment property.
01:31
Why? because i use it to collect rent.
01:35
I don't use it.
01:36
That's the key.
01:37
I'm not using this machine in order to provide the goods or services myself, right? i'm not selling the machine and i'm not using it on a job.
01:45
I'm using it to rent it out to people who are going to use it for their job.
01:49
So a checks out.
01:51
I'm going to say a is correct...