Unit 11 CA Real Estate Principles

Gift tax is payable when the total value of gifts to an individual in one year is more than

$15,000

A lien in the amount of tax due is placed on all assessed real property on

January 1

The property year tax runs from

July 1 through June 30

Person S gave a friends $15,000 for tuition at Old Ivy, sending the money directly to the school. Must a gift tax return be filed?

No, because this is not considered a gift

Person M died in 2019, leaving only a separate property estate valued at only $500,000. Must an estate tax return be filed?

Yes

When all past due property taxes are paid, the county tax collector issues

a certificate of redemption

The sale of a homeowner's residence is

a reassessment event

A benefit assessment also may be called

a special assessment

The buyer of property at an auction by the tax collector receives

a tax deed

Property taxes are ad valorem taxes, which means that they are

charged in relation to the value of the property taxed.

For 2019, all of the following were deductions from a homeowner's gross income for purposes of federal income taxation except

depreciation based on a 50-year schedule

A deed may show on its face that which of the following taxes was paid?

documentary transfer tax

In California there is a state sales tax on

fixtures sold as part of a business

With respect to investment property, an investor can make use of

mortgage interest deductions from property income

Property that can be depreciated for income tax purposes is called

recovery property

The state of California collects

state income tax

The rate of federal income tax paid depends on the taxpayer's

tax bracket

Sales and use taxes are the responsibility of

the California Department of tax and fee administration

The use of property assessments was expanded by

the Franchise Tax Board

a gift is made

when an individual voluntarily transfers property for anything less than its fair market value