Chapter 13 - Taxation of Real Estate Flashcards
Real property taxes are also what?
Ad valorem taxes (proportional to real property); according to value
________ ________ assesses; __________ _______ __ ________ sets tax rate.
County accessor; County Board of Supervisors
Proposition ___ limits the amount of taxes to a maximum of 1% of the March 1, 1975, market value of the property plus the cumulative increase of 2% in mark value each year thereafter.
Proposition 13
The city or county’s fiscal year starts and ends?
July 1st to June 30th.
NDFA
No Darn Fooling Around
Property taxes become a _______ on real property on January 1st.
lien
Rebates for 62 years or older or disabled people must be filed from:
May 16th to August 31st
A veteran is entitled to an annual _________ property tax exemption against the assessed value of one property.
$4,000
Federal gift tax is while _____
while living
Federal estate tax is _____.
after death
The gift tax law provides for an $________ annual exemption per donee.
$11,000
A federal estate tax return must be filed for the estate of every resident of the United States whose gross estate exceeds $1,000,000 ($1,500,000 in 2004, $2,000,000 in 2006) in value at the date of death.
????
The California State Inheritance Tax and the California State Gift Tax were repealed on ________.
June 8, 1982
When selling a personal residence, the seller can deduct up to $250,000 ($500,00 if married) of any capital gain. Can be used every ________.
2 years; but you have to have lived in the house for 2 out of the last 5 years.
Depreciation schedule for residential is a minimum of _____ years (straight-line)
27.5 years
Commercial improvements depreciation schedule:
minimum 39 years; straight line
A tax that charges a higher percentage of income as income rises.
Progressive tax
The rate that the next dollar earned puts you into.
Marginal tax rate
Use the same rate no matter how much is spent or earned. An example is sales tax.
Regressive tax
What is “adjusted cost basis?”
Is the base cost, plus capital improvements, minus depreciation and sale expenses.
The sale of real estate in which the payments for the property extend over more than one calendar year.
Installment sale
A transfer of real estate where one party trades proper for another’s property.
Exchange
A city may levy a tax against real estate brokerage firms, which is based upon the gross receipts, through which tax?
Business License Tax; usually starts around $100.
_____ tax is a tax on only tangible personal property.
Sales tax; max penalty of $35
A buyer is protected from ____________’s liability by obtaining a “clearance receipt” from the State Board of Equalization.
successor’s liability
