Azure Tide Section 18

Carlotta decided to downsize from a property with a just value of $600,000 but had an assessed value of only 460,000. She bought a new home with a just value of $300,000. Using the Portability provision of the Save Our Home Benefit, what would be the taxable value of the new home for school taxes?

$205,000 Question Feedback[Section 18, Slide 53] Take the market value (just value) of the new home and divide by the market value of the old home. Take the resulting percentage and multiply by the assessed value of the old home. $300,000/$600,000 = .5 x $460,000 = $230,000 (adjusted value)-$25,000 (additional school tax exemption)=$205,000

Terry is a widower who is permanently disabled. His homesteaded property has an assessed value of $260,000. What is his taxable value for school taxes?

$234,000 Question Feedback[Section 18 Slide 55-56] $260,000 - $25,000 regular exemptions - $500 widower exemption - $500 disability = $234,000

Rhonda was charged for paving in front of her house. She owned 100 linear feet which was being charged at $28 a linear foot. The city agreed to pay the first 25% of the cost. How much was Rhonda charged as a special assessment?

$28 x 100= $2800 x .75= $2,100 /2 = $1,050

Pam's home has an assessed value of $301,000. She qualifies for the Florida homestead exemption. The area she lives in has the following taxes: County tax rate is 8.6 mills, City tax rate is 4 mills and the school district tax rate is 6.1 mills. How much will the property taxes be in total?

$4,846.20 Question Feedback[Section 18 Slide 31] $301,000 -$50,000 = $251,000 x .0126 (8.6 mils + 4 mils =12.6 mils) = $3,162.60; $301,000 - $25,000=$276,000 x .0061 (6.1 mils) = $1,683.60; $3,162.60+ $1,683.60 = $4,846.20

Frank and Mary own a homesteaded home together with an assessed tax value of $515,000. Frank was in an accident and lost both his legs leaving him totally and permanently disabled. How much will their exemption be for county tax?

$50,500 $50,000+$500= $50,500

Patsy purchased an income residential property for $240,000. It cost her $7,200 in closing costs. $30,000 is the value of the land. What is the amount of the yearly depreciation for federal taxes?Patsy purchased an income residential property for $240,000. It cost her $7,200 in closing costs. $30,000 is the value of the land. What is the amount of the yearly depreciation for federal taxes?

$7,898.18 Question Feedback[Section 18, Slide 111] You subtract the value of the land from the depreciable basis and divide by 27.5 to get the yearly depreciation: $240,000 + $7,200 = $247,200- $30,000 = $217,200 w 27.5 = $7,898.18 allowable depreciation per year for federal taxes

Homes in Audrey's neighborhood increased in value by 5% last year while the consumer price index only increased by 4%. What's the most that Audrey's home assessed value can increase if her home was homesteaded?

3% Save Our Homes Amendment

The established useful asset life for nonresidential income-producing property under the IRS code is what number of years?

39 years

Heathcliff owns a property that was assessed to have a just value of $350,000. He is homesteaded with no other exemptions. The county tax is 6 mills, the city tax is 6.5 mills, and the school tax is 7 mills. How much would Gary owe in property taxes?

6,025 Question Feedback[Section 18 Slide 31]; To solve this problem you total The county tax and city tax mills together. 6 mills + 6.5 mills = 12.5 mills. Convert into a decimal: .0125. Take $350,000 applicable homestead exemptions of $50,000 = $300,000 x .0125 = $3,750 taxes due for county and city. Then take $350,000 and subtract school applicable exemptions of $25,000 = $325,000 x .007 (7 mills converted to decimals) = $2,275 taxes due for school. Add $3,750 + $2,275 = $6,025 Total Tax Due

Mr. Rogers knows that there are certain properties that are tax exempt. Knowing this piece of information, he knows that exempt properties include which one of the following types of property?

Churches

What is another name for a land contract?

Contract for deed

Brigg bought a house last year when he paid $5,000 in discount points. Over the past year he also paid $8,575 in mortgage interest, $6,200 in principal payments, $1,300 in property tax, $750 in mortgage insurance, $900 in property insurance, and $1,500 in maintenance. Which expenses are deductible from his federal taxes?

Discount Points paid of $5,000, mortgage interest of $8,575 and property taxes of $1,300

A 1031 Exchange is used for primary residences to transfer the Save Our Homes benefit.

False

Commercial rental property can be depreciated over 27.5 years using the straight-line depreciation method.

False

If a homeowner disagrees with the assessed value of the property, the only course of action to take is to sue the local government.

False

Who ultimately is required by the IRS to collect and pay the Foreign Seller tax?

The Buyer

You own a residential investment property that was purchased at $291,000. The land associated is valued at $73,000. Using the IRS straight line method which statement is correct?

The depreciable basis will be $218,000 depreciated over 27.5 years.

The Fields wanted to buy their first home. Mr. Field wanted to draw money out of their IRA, but Mrs. Fields was afraid of the tax consequences. What would their tax advisor most likely tell them?

They will experience many tax advantages including being able to deduct the interest on their mortgage, being able to withdraw the down payment penalty free from their IRA, and have up to $500,000 excluded from capital gains tax of their primary residence at the time of sale as long as they live in the home 2 of the 5 years prior to sale.

First-time homebuyer can withdraw up to $10,000 from an IRA without paying the early withdrawal penalty to use as a down payment on a home.

True

If an investor can manage to hold real estate assets for longer than a year, they can benefit from a reduced tax rate on the capital gains (profits).

True

Just value is defined as market value.

True

Properties immune from property taxes include Public Schools, Municipal buildings, Police headquarters, and Fire Stations.

True

Property tax is called an ad valorem tax because it is said to be based on a determined fair value of the property- not an arbitrary value.

True

Special assessments are extra property taxes placed on property for public improvement that benefits the property owner such as street paving, sidewalks, and sewers.

True

The Greenbelt law exemption is a partial exemption that protects agricultural land from being taxed by higher values base on highest and best use.

True