C2U14 Taxation

Question 1

The MOST difficult tax to avoid is the:

a. sales tax
b. real property tax
c. income tax
d. estate tax

Answer 1

b. real property tax

Question 2

The months of November, December, February and April relate to:

a. real property taxes
b. income taxes
c. estate taxes
d. sales taxes

Answer 2

a. real property taxes

Question 3

What did Proposition 13 provide for?

a. It set a minimum tax rate
b. It set assessments for property acquired before 1978 back to the value on the 1975 tax roll
c. The tax can be increased 2% per year
d. All of these

Answer 3

d. All of these

Question 4

The proposition that allows a tax assessment for certain homeowners to be transferred from one county to another is Proposition:

a. 13
b. 58
c. 60
d. 90

Answer 4

d. 90

Question 5

The homeowner’s property tax exemption is:

a. $50,000 for a single person
b. $4,000 from assessed valuation
c. $7,000 from assessed valuation
d. the first $100,000 of assessed valuation

Answer 5

c. $7,000 from assessed valuation

Question 6

Depreciation for a residential property uses:

a. the straight-line method
b. a 27 1/2-year table
c. a 39-year table
d. both a and b

Answer 6

d. both a and b

Question 7

To have a tax-deferred delayed exchange, which of the following is required?

a. The exchanged property must be identified within 45 days after the taxpayer relinquishes his property
b. The sale must be completed within 180 days after the taxpayer relinquishes his property
c. Both of these
d. Neither of these

Answer 7

c. Both of these

Question 8

That have a 1031 tax-deferred exchange, you need all of the following EXCEPT:

a. like-for-like properties
b. to receive boot rather than pay for it
c. a trade of investment real property for investment real property
d. to hold property after the exchange in the same manner as you held property going into the exchange.

Answer 8

b. to receive boot rather than pay for it

Question 9

Albert wants to exchange property with Baker. Which would be boot to Albert in the exchange?

a. Cash given by Albert to balance equities
b. Cash received by Albert to balance equities
c. Acceptance of a greater debt by Albert
d. Both a and c

Answer 9

b. Cash received by Albert to balance equities

Question 10

A homeowner can receive preferential tax treatment by:

a. an interest deduction
b. use of the universal exclusion
c. a property tax deduction
d. all of these

Answer 10

d. all of these