Real Estate 10

"Boot" has an important influence when considering: A. A tax free exchange B. A sale under a conditional sales contract C. A percentage lease D. A sale and leaseback

A. A tax free exchange

One of the benefits under the federal income tax law that is available to individuals who own the home they reside in and who also itemize their deductions, is that they may deduct which of the following expenses: A. Interest payment on their home loan B. Principal payments on their home loan C. Maintenance and improvement costs. D. Depreciation

A. Interest payment on their home loan

The cost basis of a single family residence can be adjusted for which of the following? A. Room or patio addition B. Fire insurance premiums C. Interest paid on a loan D. Depreciation

A. Room or patio addition

A federal income tax advantage could result from: A. A deduction for depreciation B. Any of these choices C. The sale of property on the installment plan D. A tax free exchange

B. Any of these choices

If an out-of-state resident was to ask when the first installment of the county real property taxes becomes due, you should answer: A. July 1st B. November 1st C. March 1st D. December 10th

B. November 1st

Real estate taxes for the coming year become a lien on the real property: A. On July 1st each year B. On January 1st each year C. The first Monday in November D. If not paid by December 10th

B. On January 1st each year

Book value of an income producing property, for tax purposes, is best described as the: A. A difference between the original cost and the current market value. B. Original cost of the land and buildings, plus the cost of any additions, less any depreciation. C. Current market value of the property. D. Original cost of the property less financing costs.

B. Original cost of the land and buildings, plus the cost of any additions, less any depreciation

A duplex worth $200,000 which has a first trust deed of $160,000 is exchanged for an apartment worth $225,000 with a lien of $182,000. The amount that would be given in the form of cash or a note to balance the exchange would be? A. $13,000 B. $10,000 C. $3,000 D. $15,000

C. $3,000

When property has become known as "Tax Defaulted Property", the owner will retain title to the property for five years. During this period the delinquent tax payer. A. Is under no obligation to pay future taxes. B. Must vacate the property. C. Can continue to possess the property. D. Must pay rent.

C. Can continue to possess the property.

First half taxes become delinquent on real property after: A. The first Monday in March B. July 1st C. December 10th D. The first Monday in May

C. December 10th

The Real Estate Tax Fiscal year is for the period: A. April 10 to April 10 B. December 1 to November 30 C. July 1 through June 30 D. January 1 through December

C. July 1 through June 30

Tax consciousness with respect to real estate transactions should take place: A. At the end of the tax year B. At the close of escrow C. Prior to the purchase D. After the property is sold

C. Prior to the purchase

Mr. Carter was able to purchase an apartment building for $225,000. The property had been appraised for $250,000 and the tax assessor had placed a value of $200,000 on it. If Carter paid $50,000 down and financed the balance, his cost basis for income tax purposes would be: A. $250,000 B. $175,000 C. $200,000 D. $225,000

D. $225,000

Assume that a street is improved under the 1911 Street Improvement Act. After the bill is presented to the property owner for the work, the property owner is allowed how many days to pay it before it goes to bond? A. 90 days B. 60 days C. 20 days D. 30 days

D. 30 days

For federal income tax purposes, which of the following types of property can be depreciated? A. An owner-occupied single family residence B. Vacant land C. An owner-occupied condominium unit D. A peach tree orchard

D. A peach tree orchard

An individual is not permitted to deduct a loss on his or her Federal Income Tax return if the loss resulted from the sale of: A. Personal property used in business of the taxpayer. B. A former residence that was leased at the time of sale. C. Income producing property. D. A personal residence.

D. A personal residence.

The second installment of county real property taxes becomes delinquent after: A. December 31 B. February 10 C. March 15 D. April 10

D. April 10

The real property tax rate for the county is set by the: A. County Tax Collector B. County Tax Assessor C. State Board of Equalization D. County Board of Supervisors

D. County Board of Supervisors

Mr. and Mrs. Jones purchased a residence for $270,000. After living in the home for one year they sold it for $250,000. The amount of deduction that can be taken for this capital loss for federal income tax purposes is: A. 25% B. $10,000 C. $20,000 D. Nothing

D. Nothing

Which of the following sales would result in ordinary income in relation to income tax? A. The sale of an apartment building by and investor B. The sale of a property held for investment purposes C. The sale of a personal residence D. The sale of subdivision homes

D. The sale of subdivision homes