Real Estate Chapter 14

Under certain conditions, married couples may exempt up to how much in gains from the sale of a home? a. $500,000 b. $250,000 c. $125,000 d. $50,000

a. $500,000

Which of the following is TRUE? a. A person cannot use a homeowner's exemption and a veteran's exemption on the same home. b. Real property taxes become a lien on the first Monday in March. c. A 12 percent penalty is added for delinquent property taxes d. California has special property tax exemptions for senior citizens 45 years or older.

a. A person cannot use a homeowner's exemption and a veteran's exemption on the same home.

A law used to finance public services in newly developed areas that can lead to high assessments for the affected owners is called: a. Mello-Roos b. Holding-Aspen c. Alvarez-Greene d. Brown-Miller

a. Mello-Roos

Which of the following is true? a. a person cannot use a homeowner's exemption and a veterans exemption on the same home b. real property taxes become a lien on the first Monday in March c. a 12% penalty is added for delinquent property taxes d. California has special property tax exemptions for senior citizens 45 years or older.

a. a person cannot use a homeowner's exemption and a veterans exemption on the same home

Ad valorem is a Latin phrase that means: a. according to the value b. buyer beware c. and others d. date of acquisition

a. according to the value

An investor who has owned a property for 2 years and then sells for a gain most likely will pay: a. capital gains taxes b. ordinary income taxes c. only California, not federal taxes d. none of the above

a. capital gains taxes

For investors, losses on the operation of rental real estate are what type of losses? a. passive b. active c. actual d. portfolio

a. passive

A frequently used special assessment law is: a. the Street Improvement Act of 1911 b. the Mello-Roos Community Facilities Act of 1982 c. Proposition 13 d. Proposition 19

a. the Street Improvement Act of 1911

To obtain a full homeowner's exemption, a new homeowner must file between January 1 and: a. December 10 b. Febaury 15 c. April 15 d. June 1

b. Febaury 15

The proposition that allows certain homeowners to transfer their property tax base to another home is: a. Proposition 13 b. Proposition 19 c. Proposition 57 d. Proposition 86

b. Proposition 19

Which of the following events could trigger a new property tax assessment? a. a refinance by the current owner b. a real estate transfer c. a construction loan d. the rental of a single family residence

b. a real estate transfer

In a 1031 real estate exchange, a tax liability arises if the person exchanging receives: a. like-kind property b. boot c. income property d. investment property

b. boot

Upon the transfer of a property, a(n) _____ ia levied. a. passive loss b. documentary transfer tax c. IRS lien d. inheritance tax

b. documentary transfer tax

City council members responsible for which of the following? a. assessing real property b. establishing city budgets c. establishing country budgets d. collecting property taxes

b. establishing city budgets

When a special assessment is made on a piece of property under the Street Improvement Act of 1911: a. the property owner can deduct principal interest b. it is based on the front footage of the property c. it is appraised as per the amount of square footage d. assessment must be paid within six months

b. it is based on the front footage of the property

Under certain conditions, a single homeowner may exempt up to how much in gains from the sale of a home? a. $500,000 b. $300,000 c. $250,000 d. $125,000

c. $250,000

Under certain conditions, a single homeowner may exempt up to how much in gains from the sale of his or her personal home? a. $329,0239 b. $300,000 c. $250,000 d. $125,000

c. $250,000

The homeowner's exemption, excluding local assessments, saves approximately how much in property taxes? a. $100 b. $80 c. $70 d. $40

c. $70

When foreigners sell U.S. property, the foreign Investment in Real Property Tax Act may require what percentage to be withheld from the sale proceeds? a. 3 percent b. 5 percent c. 15 percent d. 13 percent

c. 15 percent

When foreigners sell U.S. property, the Foreign Investment in Real Property Tax Act (FIRPTA) who is responsible for the withholding from the sale proceeds? a. Seller b. Seller's Agent c. Buyer d. Buyer's Agent

c. Buyer

The proposition that allows certain homeowners to transfer their property tax base to another home in California is: a. Proposition 13 b. Proposition 15 c. Proposition 19 d. Proposition 20

c. Proposition 19

Which of the following is TRUE of the exclusion on paying capital gains on primary residence? a. The owner must have lived in the property at least five consecutive years. b. Single people may exclude up to $500,000. c. The exclusion can be used one every two years. d. Only those over 55 and married may use the exclusion.

c. The exclusion can be used one every two years.

For a homeowner, which of the following is tax deductible? a. fire insurance premiums b. roof repairs c. mortgage interest d. landscaping maintenance

c. mortgage interest

A property was valued at $500,000 for property tax purposes. According to Proposition 13, what would be the maximum value for property tax purposes in two years, assuming the owner did not make capital improvements? a. $502,420 b. $504,010 c. $506,220 d. $520,200

d. $520,200

The second installment of real property taxes is delinquent if not paid by: a. November 1 b. December 10 c. February 1 d. April 10

d. April 10

Property taxes become a lien on: a. July 1 b. November 1 c. February 1 d. January 1

d. January 1

Private property is deeded to the state for delinquent property taxes after: a. one year b. two years c. three years d. five years

d. five years

The country tax assessor's duty is to determine: a. the tax rate to be applied to assessed values b. assignment of parcel numbers to current secured tax rolls c. tax to be paid by the property owner d. value of the property for tax purposes

d. value of the property for tax purposes