Chapter 18 - Quiz Flashcards
What is the purpose of the Florida Green Belt Law?
To provide low income housing
To protect Agricultural Land from high taxation
Regulates Homestead Exemptions
To cap the taxation rate
To protect Agricultural Land from high taxation
The Florida Green Belt Law protects Agricultural Land from high taxation.
What does the term BOOT refer to?
The payment that becomes due when a loan goes into foreclosure
The points paid to reduce the interest rate on a loan
The clause in a mortgage that allows payment in full without penalty
An amount of money or personal property contributed when exchanging property
An amount of money or personal property contributed when exchanging property
Boot refers to an amount of money or personal property contributed when exchanging property.
What is the Homestead Exemption for someone who is 65 years old with a household income of $20,000 or less?
$10,000 (Dollars)
$100,000 (Dollars)
$50,000 (Dollars)
$20,000 (Dollars)
$100,000 (Dollars)
The Homestead Exemption is $100,000 (Dollars).
What is the term used for a property that is assessed for tax but it is not a requirement for the owner to pay the tax?
Intangible Property
Condominium
Quit Claim Property
Exempt Property
Exempt Property
A property that is assessed for tax but the owner is not required to pay the tax is an Exempt Property.
The City want to pave the road in front of George’s house, George has 150 front feet the cost to pave is $38 per linear foot and the city will pay 30% of the paving. What is George’s cost?
$1,710 (Dollars)
$3,990 (Dollars)
$855 (Dollars)
$1,995 (Dollars)
$1,995 (Dollars)
Which is correct regarding 1031 exchanges and installment sales?
Installment Sales collect payments over a period of time and 1031 exchanges can have cash as a boot
Installment Sales are only for Condominiums, 1031 exchanges are only for vacant land
Installment Sales require a contract for a minimum of 30 years, 1031 exchanges are instant
1031 exchanges have no tax advantages, Installment Sales are tax havens
Installment Sales collect payments over a period of time and 1031 exchanges can have cash as a boot
A home sells for $200,000 with 6% real estate commission. It was originally purchased for $55,000 with closing costs of $2,250 a new Master Bedroom was added at a cost of $80,000. What is the amount of Taxable Gain on the adjusted basis?
$65,000 (Dollars)
$52,750 (Dollars)
$62,750 (Dollars)
$50,750 (Dollars)
62,750 (Dollars)
$200,000-$55,000-$2,250-$80,000= $62,750 (Sales Commission is not relevant to this calculation).
Lilly and John sold a house they had lived in for 18 months for $600,000 and bought a seaview apartment. They file their taxes jointly as a married couple. Will they owe any capital gain on the property?
Yes. They need to have lived in the home for two out of the five previous years to meet the exemption requirements.
No because they are filing their taxes a married couple
Yes because they paid cash for their previous property.
No because they have bought a more expensive property
Yes they will owe for capital gain since the exemption requirements of living in the home for two out of the five previous years have not been met.
What is the name of the proceeding in which the homeowner files suit in the courts after paying taxes under protest when he is challenging the assessed value of his home?
Deferred Judgement Proceeding
Lis Pendens
Acceleration Proceeding
Certiorari Proceeding
Certiorari Proceeding
Certiorari Proceeding is where the homeowner files suit in the courts when his other appeals have failed.
What are Ad Valorem Taxes?
Added Value Taxes for Road Improvements
Emergency Taxation during pandemics
Taxes added after the homeowner remodels
Real Estate Taxes derived form the assessed value of properties
Real Estate Taxes derived form the assessed value of properties
Real Estate Taxes derived form the assessed value of properties is known as Ad Valorem Tax.
