Chapter 14 Flashcards
The homeowner’s exemption, excluding local assessments, saves approximately how much in property taxes?
$70
The proposition that allows certain homeowners to transfer their property tax base to another home in the same county is:
Proposition 60
For a homeowner which of the following is tax deductible?
mortgage interest
Ad Valorem means according to:
value
The second installment of real property taxes is delinquent if not paid by:
April 10
A seller’s current real estate tax is $1,175 per year including the homeowner’s exemption. The condo is sold to a buyer for $197,500. Assuming no local assessments are added to the tax bill, what will be buyer’s real property tax bill including the homeowner’s exemption?
$1,905
Which of the following is true?
a person cannot use a homeowner’s exemption and a veteran’s exemption on the same home
A property was valued at $200,000 for property tax purposes. According to Proposition 13, what would be the maximum value for property tax purposes in two years, assuming the owner did not make capital improvements?
$208,080
To obtain a full homeowner’s exemption, a new homeowner must file between January 1 and:
February 15
Under certain conditions, married couples may exempt up to how much gains from the sale of a home?
$500,000
When foreigners sell U.S. property the Foreign Investment in Real Property Tax Act (FIRPTA) may require what percentage be withheld from the sale proceeds?
10%
Property taxes become a lien on:
January 1
Private property is deeded to the state for delinquent property taxes after:
5 years
When a special assessment is made on a piece of property under the Street Improvement Act of 1911:
it is based on the front footage of the property
In a 1031 real estate exchange a tax liability arises if the person exchanging receives:
boot
The amount paid as a commission for the sale of an owner occupied home can be deducted on the seller’s federal income tax as:
an expense of sale
Under certain conditions, a single home owner may exempt up to how much in gains from the sale of a home?
$250,000
Income property owners can deduct for income tax purposes:
depreciation
repairs
mortgage interest
all are correct
When reference is made to a “tax free” exchange, it is usually meant that there will be:
deferred taxes
The county tax assessor’s duty is to determine:
value of the property for tax purposes
A law used to finance public services in newly developed areas that can lead to high assessments for the affected owners:
Mello-Roos
For investors, losses on the operation of rental real estate are what type of losses?
passive
Property owners can appeal the size of their property tax bill to an assessments appeals commission or in some areas to the:
the County’s Assessment Appeals Board or the Board of Equalization
Federal income taxes are referred to as a:
progressive tax
An investor who has owned a property for 2 years and then sells for a gain most likely will pay:
capital gains taxes
To qualify for installment sale reporting, a seller must:
carry paper
“A” and “B” have purchased agricultural land as joint tenants. “A” is farming the entire plot, while “B” is using no part of it. Regarding property taxes:
both owners are liable for taxes
Which can be depreciated for income tax purposes?
rental property
Since the passage of Proposition 13, the county tax assessor is required to value property for real property taxes on a basis of the:
full cash value
Federal income taxes on the sale of income property can be deferred by which of the following methods? carry paper installment sales 1031 exchange all are correct
all are correct
