Course 2 Quiz 14

The second property tax bill is due on ? A. November 10th B. December 10th C. February 10th D. April 10th

Answer: D, April 10th.

Cash received in a tax-deferred exchange is known as ? A. capital gain B. Asset C. Conversion D. boot

Answer: D, Boot .

Property taxes in California are reassessed as of the ? A. 1st every year B. End of every year C. 2nd quarter of every year D. Sale date of a property

Answer: D, Sale date of a property .

Residential property is considered to have a useful life of ? A. 27.5 years B. 29 years C. 35 years D. 39 years

Answer : A, 27.5 years.

A mothed of depreciation under which improvements are depreciated at a constant rate throughout the estimated useful life of the improvement is known as ? A. Straight line depreciation B. Term depreciation C. Adjustable depreciation D. Consistent depreciation

Answer : A, Straight line depreciation . ( think closely on the words Constant Rate Throughout )

Real estate taxes are considered a tax deductible for homeowners ? A. true B. False

Answer : A, True .

According to proposition 13, the maximum state real estate tax is _______ of the fair market value of a property ? A. 1% B. 3% C. 5% D. 10%

Answer: A, 1% .

Single owners are exempt from paying capital gains taxes on the sale of their primary residence up to ? A. 250,000 B. 500,000 C. 600,000 D. 100,000

Answer: A, 250,000.

The profit realized from the sale of real estate is known as a ? A. Capital gain . B. Capital loss C. Credit D. Debit .

Answer: A, Capital gain .

A personal residence is also known as a ? A. Primary residence B. Secondary residence C. Vacation residence D. Investment property

Answer: A, Primary residence .

A homeowner can have their property reassessed ? A. True B. False

Answer: A, True .

A time-share is an example of a secondary residence ? A. True B. False

Answer: A, True .

Boot is considered taxable income ? A. True B. False

Answer: A, True .

Proposition 90 is available in participating counties ? A. True B. False

Answer: A, True .

real estate should never provide tax advice to their clients ? A. True B. False

Answer: A, True .

Landscaping is an example of a capital improvement ? A. True B. False

Answer: A, True.

In order to qualify for the primary residence capital gains tax exemption, the owner must have lived in the house for _________ our of the previous 5 years ? A. 1 B. 2 C. 3 D. 4

Answer: B, 2 .

Married couples are exempt from paying capital gains taxes on the sale of their primary residence up to ? A. 250,000 B, 500,000 C. 600,000 D. 100,000

Answer: B, 500,000.

The first property tax bill is due on ? A. November 10th B. December 10th C. February 10th D. April 10th

Answer: B, December 10th .

The amount decrease of value of an asset that is allowed in computing the value of the property for tax purposes is known as ? A. Appreciation B. Depreciation C. Credit D. Debit

Answer: B, Depreciation. ( think of the word decrease in the question )

Which of the following allows property to be transferred between family members without being taxed on the first million dollars of market value ? A. Proposition 11 B. Proposition 58 C. Proposition 60 D. Proposition 90

Answer: B, Proposition 58.

Owner occupied residential properties are entitled to a _________ homeowners tax exemption ? A. 2000 B. 5000 C. 7000 D. 10000

Answer: C, $7000.

Proposition 13 was enacted in ? A. 1964 B. 1968 C. 1978 D. 1991

Answer: C, 1978 .

The value of property used to determine the amount of gain or loss realized by an owner upon sale of the property is known as the ? A. Depreciated basis B. Net basis C. Adjusted basis D. Gross basis

Answer: C, Adjusted basis .

An item that adds value to the property, adapts the property to new users, or prolongs the life of the property is known as ? A. Value improvement B. Income improvement C. Capital improvement D. Routine Improvement

Answer: C, Capital improvement .

Real estate taxes are calculated as a _____ of a property's full cash value ? A. Flat fee B. Deductible C. Percentage D. Division

Answer: C, Percentage .

This proposition benefits citizens 55 and older ? A. Proposition 11 B. Proposition 13 C. proposition 60 D. Proposition 137

Answer: C, Proposition 60. ( Think on how 55 is closer to 60 to remember )

A section of the U.S. Internal revenue service code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes is known as ? A. Section 12-A exchange B. Section 11 exchange C. Section 1031 exchange D. Section 90 exchange

Answer: C, Section 1031 Exchange .

For depreciation purposes, the value of land can be determined using which of the following methods ? A. Assessed value method B. Appraisal method C. Contract method D. All The Above

Answer: D, All The Above .