Ch. 16

According to FIRPTA, what percent would a buyer who is buying the property as a personal residence need to withhold when purchasing a $‎200‎,‎000 ‎home from a foreigner?‎ 0% 15% 3.30% 10%

A

Bill and Brenda bought their home for $150,000 seven years ago and have lived in it ever since. They made $50,000 of improvements. They sold the home for $450,000 and paid $30,000 in selling expenses, including the broker's commission. On what amount will they pay capital gains tax? $0 $100,000 $250,000 $300,000

A

Which proposition limited the maximum amount of tax on real property? Proposition 13 Proposition 58 Proposition 60 Proposition 90

A

Homeowners can deduct all but which of the following from their income taxes? Mortgage interest Depreciation Prepayment penalties Property taxes

B

Mike bought his home last year for $150,000. His property taxes would be assessed at: $1,000 $1,500 $2,250 $3,000

B

A totally disabled veteran could be eligible for a property tax exemption of up to what amount? $50,450 $100,730 $191,266 $206,850

C

When is the first installment of property taxes due? First of February Tenth of April First of November Tenth of December

C

How can a seller lessen the tax impact of selling a home for enough profit that he or she will be boosted to a much higher tax bracket? There is nothing that can offset this problem. Do a tax-free exchange instead. Participate in a tax shelter program. Do an installment sale.

D

How long must buyers and brokers keep the documentation on a foreign sale? 2 years 3 years 4 years 5 years

D

When a person acquires new property, which is true? The owner has 30 days to notify the county assessor. The seller must file a bill of sale with the county clerk. The owner has 45 days to pay the new property taxes. The owner has 45 days to file a change in ownership statement.

D