real estate principles chapter 11 review

property taxes are ad valorem taxes which means that they are a. charged in relation to the value of the property taxed b. charged once at the time of a property transfer c. use taxes d. sales taxes

a. charged in relation to the value of the property taxed

property that can be depreciated for income tax purposes is called a. recovery property b. tax basis c. boot d. like kind property

a. recovery property

The rate of federal income tax paid depends on the taxpayer's a. tax bracket. b. state income tax paid. c. location. d. source of income.

a. tax bracket

person m died in 2019 leaving only a separate property estate valued at 500k. must an estate tax return be filed a. yes b. no c. only if m was a widower d. only if the estate is probated

a. yes

Gift tax is payable when the total value of gifts to an individual in one year is more than a. 8k b. 15k c. 17k d. 28k

b. 15k

the sale of a homeowners residence is a a. release of equity b. reassessment event c. local assessment d. notice of change of ownership

b. reassessment event

a benefit assessment also may be called a. tax credit b. special assessment c. community assessment d. documentary transfer tax

b. special assessment

The use of property assessments was expanded by a. the Senior Citizens' Tax Act. b. the Mello-Roos Community Facilities Act. c. the State Board of Equalization. d. the Housing Economic Recovery Act.

b. the mello-roos community facilities act

A gift is made a. by a donor to a beneficiary. b. when an individual voluntarily transfers property for anything less than its fair market value. c. any time property is transferred between parent and child. d. when like-kind property is exchanged.

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

when all past due property taxes are paid the county tax collector issues a a. receipt for unpaid taxes b. letter of credit c. certificate of redemption d. release of equity

c. certificate of redemption

in california there is a state sales tax on a. food b. buildings to be removed from land by the buyer as part of a transaction c. fixtures sold as part of a business d. inventory sold as part of business

c. fixtures sold as part of a business

A lien in the amount of tax due is placed on all assessed real property on a. april 15th b. december 10 c. january 1st d. july 1st

c. january 1st

the property tax year runs from a. january 1st-december 31st b. april 10-december 10 c. july 1-june 30 d. december 10-december 9

c. july 1-june 30

the state of california collects a. federal income tax b. gift tax c. state income tax d. inheritance tax

c. state income tax

sales and use taxes are the responsibility of a. the internal revenue service b. the franchise tax board c. the california department of tax and fee administration d. the department of housing and community development

c. the california department of tax and fee administration

for 2019 all of the following were deductions from a homeowners gross income for purposes of federal income taxation EXCEPT a. mortgage interest on a loan of 250k b. local property tax c. mortgage interest on combined first and second home loans totaling 935K d. depreciation based on a 50 yr schedule

d. depreciation based on a 50 yr schedule

a deed may show on its face that which of the following taxes was paid a. release of equity b. gift tax c. deed tax d. document transfer tax

d. document transfer tax

with respect to investment property an investor can make use of a. the residence replacement rule b. exclusion from taxation c. property tax postponement d. mortgage interest deductions from property income

d. mortgage interest deductions from property income

person s gave a friend 15k for tuition at old ivy, sending money directly to the school. must a gift tax return be filed a. yes because this is a gift b. no because this gift has an exemption c. yes so that the exemption can be claimed d. no because this is not considered a gift

d. no because this is not considered a gift (went directly to the school and not to a single person)

the buyer of property at an auction by the tax collector receives a. certificate of sale b. a release of equity c. quitclaim deed d. tax deed

d. tax deed