Questions: Which of the following statements regarding the forms of real estate ownership are correct? I. In outright ownership, all tax benefits and liabilities flow directly to the owners. II. In a general partnership, any partner may freely transfer their ownership without restriction. III. In a limited partnership, all limited partners are entitled to participate in the daily management decisions relating to the property. IV. In an S corporation, losses are passed through to the owners to use on their personal tax returns.

The correct statements are I and IV.

This statement is correct. In outright ownership, also known as fee simple ownership, the owner has complete control over the property and is directly responsible for all tax benefits and liabilities associated with it.

This statement is incorrect. In a general partnership, the transfer of ownership is typically subject to the approval of the other partners, and there are often restrictions in the partnership agreement regarding the transfer of ownership interests.

This statement is incorrect. In a limited partnership, limited partners typically do not participate in the daily management of the property. Their role is primarily as investors, and they have limited liability. The general partner(s) manage the partnership and make daily management decisions.

This statement is correct. An S corporation is a pass-through entity, meaning that income, losses, deductions, and credits are passed through to the shareholders, who report these on their personal tax returns.