CA Real Estate Principles | Chapter 11 Quiz

A personal residence & business equipment are considered

capital assets. A capital asset is all property except business inventory or other property held for sale in the ordinary course of one's business

The second property tax installment assessed values is the

April 10. The February payment is delinquent after 5pm on April 10

Unless an extension is given, a federal income tax return must be filed for the preceding tax year by

April 15.... if adjusted gross income is high enough or federal income tax has been withheld & refund is due. Both individuals & corporations are taxed

Real property taxes become a lien on

January 1. On Jan 1, when the assessment roll takes effect for the next tax year, a lien is placed on all assessed real property in the amount of the tax due

The 1st property tax installment of the tax year is due on

November 1. The property tax year runs from July 1 through the following June 30. Property tax is payable in 2 installments due NOV 1 and FEB 1

A principal residence must be occupied for how long to take advantage of the maximum exclusion of profit from taxable income?

Two year. As of August 5, 1997, homeowners are allowed an exclusion from federal income taxation of up to $250K (for single taxpayers) or $500K (for a couple married @ the time of sale) of the profit on the sale of the principal residence. The exemption is allowed if the home was owned & occupied for two of the last 5 years prior to the sale

In CA, the inheritance & gift taxes have been

abolished. Prop 6 repealed the CA inheritance & gift taxes

Taxes charged in direct relation to property value are

ad valorem taxes. Property taxes are usually are ad valorem taxes, which means they are charged in relation to the value of the property taxed

The person responsible for determining assessed values is the

county assessor. County assessor is the elected official responsible for determining assessed values & preparing the tax roll

The purpose of the property tax assessed value is to

establish the base value. The base value of a property is its full cash value (market value) as of February 28, 1975, or the date of a subsequent reassessment event. Assessed value, for property tax purposes, is the property value to which the tax rate is applied