Question

Programs allowing for the direct pass-through of losses and income to investors include all of the following EXCEPT:

A) REITs.
B) oil and gas drilling direct participation programs.
C) S corporations.
D) new construction real estate direct participation programs.

Answer 1

A) REITs (Real Estate Investment Trust).

Step-by-step explanation:

Note that a Real Estate Investment Trust (REIT) is a company that gathers the capital of several investors to secure a real estate property, thus, they allow each individual investors to earn dividends from thier real estate investments.

The Real estate investment trust program often allows the passing through of income but not for losses, in a sense the real estate investors bear any losses that maay arise.