Practice and Ethics: Ch.11 Quiz

Every time a property is transferred (sold) it is reassessed and a "change of ownership statement" must be filed with the County Assessors Office within:

45 days

Which of the following can be depreciated for tax purposes?

Only the buildings or other improvements on income, trade or business property

Taxes where the rates increase as the amount to be taxed increases are an example of:

Progressive taxes

Who is the county officer who has the responsibility of determining the assessed valuation of land, improvements, and personal property used in business?

The county assessor.

The following can be deducted from personal taxes:

a. Interest paid on personal residence b. Property taxes on a personal residence c. Prepayment penalties paid on a personal residence

Building depreciation for income producing property tax purposes is:

a. NOT based on actual physical depreciation. b. based on the accounting method of depreciation. c. calculated on the useful life of the property.

The buyer and broker do not have to see that 10 percent of the sales price is held in escrow for the IRS if:

a. the property is nonresidential b. the residential property is less than $300,000.This answer is incorrect c. the seller signs an affidavit of nonforeign status

Capital gains are taxed:

at a lower rate than ordinary income.

In a 1031 exchange, "boot" is defined as:

cash or debt relief.

If property taxes are not paid on or before June 30, the property is sold to the state, which starts the running of the redemption period that lasts:

five years

The sales of real estate in which the payments for the property extend over more than one calendar year is a(n):

installment sale.

Under IRS Section 1031, any real property held for investment that can be exchanged for another investment property is referred to as:

like-kind property.

Income tax rates are an example of:

progressive taxes

Taxes that use the same rate no matter how much is earned are referred to as:

regressive taxes

An example of a regressive tax is the:

sales tax.

The biggest advantage of the Opportunity Zone program (investing in struggling communities) is that the value of new investment will become tax free in:

ten years.

The primary responsibility for disclosure of any Mello-Roos bonds lies with:

the seller

Escrow prorates property taxes using:

using the seller's tax bill

State and local tax (SALT) deductions are limited on property, state, and local income or sales taxes to what amount?

$10,000

In California, annual property tax increase is limited to:

2% percent