Tax consciousness with respect to real estate transactions should take place:
Prior to the purchase
Mr. Carter was able to purchase an apartment building for $225,000. The property had been appraised for $250,000 and the tax assessor had placed a value of $200,000 on it. If Carter paid $50,000 down and financed the balance, his cost basis for income tax
The cost basis is $225,000. The assessed value and financing have nothing to do with tax basis for income tax purposes.
The cost basis of a single family residence can be adjusted for which of the following?
A. Depreciation
B. Interest paid on a loan
C. Fire insurance premiums
D. Room or patio addition
D.
Mr. and Mrs. Jones purchased a residence for $270,000. After living in the home for one year they sold it for $250,000. The amount of deduction that can be taken for this capital loss for federal income tax purposes is:
Nothing. A loss on the sale of a residence is not deductible under the federal tax laws
Real estate taxes for the coming year become a lien on the real property:
Taxes become a lien on January 1 of each year
The real property tax rate for the county is set by the:
County Board of Supervisors
The Real Estate Tax Fiscal year is for the period:
The tax year can be expressed as July 1 to July 1 OR July 1 through June 30
A duplex worth $200,000 which has a first trust deed of $160,000 is exchanged for an apartment worth $225,000 with a lien of $182,000. The amount that would be given in the form of cash or a note to balance the exchange would be?
The amount of cash or note is the difference in the equities of the two owners. The duplex with a value of $200,000 and a lown of $160,000 gives the owner a $40,000 equity. The apartment with a value of $225,000 and a loan of $182,000 gives its owner a $4
First half taxes become delinquent on real property after:
First half of taxes become delinquent after December 10
When property has become known as "Tax Defaulted Property", the owner will retain title to the property for five years. During this period the delinquent tax payer.
A. Is under no obligation to pay future taxes.
B. Must pay rent.
C. Must vacate the proper
D. Once the taxes are delinquent and the property has become known as "tax defaulted property," the owner can remain in possession for a 5 year period.
If an out-of-state resident was to ask when the first installment of the county real property taxes becomes due, you should answer:
The first installment of county property taxes becomes DUE on November 1.
Boot" has an important influence when considering:
A. A sale under a conditional sales contract
B. A percentage lease
C. A sale and leaseback
D. A tax free exchange
D. Usually the party receiving "Boot" in an exchange will have to pay income taxes
One of the benefits under the federal income tax law that is available to individuals who own the home they reside in and who also itemize their deductions, is that they may deduct which expense:
Under present federal income tax laws, the homeowner is permitted to deduct:
interest payments on the home loan.
Book value of an income producing property, for tax purposes, is best described as the:
The book value is the cost plus capital improvements less any depreciation taken or allowed.
The second installment of county real property taxes becomes delinquent after:
The second installment becomes delinquent after April 10.
Assume that a street is improved under the 1911 Street Improvement Act. After the bill is presented to the property owner for the work, the property owner is allowed how many days to pay it before it goes to bond?
After the bill is presented, the owner has 30 days to pay.
For federal income tax purposes, which of the following types of property can be depreciated?
A. Vacant land
B. An owner-occupied single family residence
C. An owner-occupied condominium unit
D. A peach tree orchard
D. A peach tree orchard would be classified as property used in a business and is depreciable.
An individual is not permitted to deduct a loss on his or her Federal Income Tax return if the loss resulted from the sale of:
You are not permitted to deduct a loss on the sale of a single family residence.
A federal income tax advantage could result from:
A. A deduction for depreciation
B. The sale of property on the installment plan
C. A tax free exchange
D. Any of the preceding
D. A tax advantage could be received under any of the choices listed.
Which of the following sales would result in ordinary income in relation to income tax?
A. The sale of a property held for investment purposes
B. The sale of a personal residence
C. The sale of subdivision homes
D. The sale of an apartment building by and
C. The developer of a subdivision tract is usually considered a dealer and any sales of the homes would be ordinary income.