real estate Chapter 14

Sellers current real estate tax is $1,175 per year including homeowners exemption. Condo is sold to buyer for $197,500. Assuming no local assessments are added to the tax bill, what will be the buyer's real property tax bill including homeowner's exemption?

$1,905

Under certain conditions, single homeowner may exempt up to how much in gains from the sale of a home

$250,000

Under certain conditions , married couples may exempt up to how much in gains from the sale of a home

$500,000

Property was valued at $500,000 for property tax purposes. According to Prop 13, what would be the max value for property tax purposes in 2 years, assuming the owner did not make capital improvements?

$520,200

The homeowner's exemption, excluding local assessments, saves approximately how much in property taxes

$70

When foreigners sell US property, Foreign Investment in Real Property Tax Act (FIRPTA) may require what percentage to be withheld from the sale proceeds?

10%

Private property is deeded to the state for delinquent property taxes after

5 years

Property taxes become a lien on

Jan 1

A law is used to finance public services in newly developed areas that can lead to high assessments for the affected owners is called

Mello- Roos

A frequently used special assessment law is

Mellow-Roos Community Facilities Act of 1982

City council members : set city property tax rates as allowed by law, establish city budgets, a and b, neither a or b

a and b

Ad valorem, is a Latin phrase that means

according to value

The second installment of real property taxes is delinquent if not paid by

april 10

In a 1031 real estate exchange, tax liability arises if the person exchanging receives

boot (unlike property received in an exchange: cash, notes, personal property)

Federal income taxes on sale of income property can be deferred by which of the following methods: all cash sale, 1031 exchange, installment sales, both B and C

both B and C

A and B have purchased agricultural land as joint tenants. A is farming the entire plot while B is using no part of it. Regarding property taxes: A is liable for taxes, B is not liable for taxes, B is liable for 1/2 of taxes, both are liable

both owners are liable

To qualify for installment sale reporting, seller must

carry paper

The amount paid as a commission for the sale of an owner occupied home can be deducted on the sellers federal income tax as

expense of sale

Property owners can appeal the size of their property tax bill to an assessments appeals commission,or in some areas to the

franchise tax board

Since passage of Prop 13, county tax assessor is required to value property for real property taxes on basis of

full cash value

When a special assessment is made on a piece of property under the Street Improvement Act of 1911

it is based on the front footage of the property

For a homeowner , which of the following is tax deductible: fire insurance premiums, roof repairs, mortgage interest, 2 of above are deductible for homeowners

mortgage interest

For investors, losses on the operation of rental real estate are what type of losses?

passive

Investor who has owned a property for 2 years and then sells for gain most likely will pay

pay capital gain taxes

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

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

Federal income taxes are referred to

progressive tax

The proposition that allows certain homeowners to transfer their property tax base to another home in the same county is

proposition 60

This event could trigger new property tax assessment: refinance by current owner, real estate transfer, construction loan, rental of single family residence

real estate transfer

Which can be depreciated for income tax purposes? owner occupied condo unit, rental property, vacant land, owner occupied single family

rental property

County tax assessor's duty is to determine

value of property for tax purposes