CHAPTER 18: Taxes Affecting Real Estate

Question 1

Define Immune property

Answer 1

City, County, State, and Federal Govt. property

Question 2

Define Just value

Answer 2

FAIR and REASONABLE value based on objective valuation

Question 3

Define Special assessment

Answer 3

• ONE TIME taxes levied on properties to help pay for some public improvements that benefit the property
• Usually for APARTMENTS and CONDOS

Question 4

Real property taxation process

Answer 4

• AD Valorem taxes (according to value)
• Assessed value of all properties in the county
• Yearly basis

Paid in arrears (end of tax year)

• Becomes payable Nov. 1st every year
• Becomes a lien on Jan. 1st each year
• Property tax liens are superior to any other lien no matter the date

Question 5

Steps in protest procedure (HINT: 3)

Answer 5

• Contact PROPERTY APPRAISERS office within 25 days to seek an ADJUSTMENT
• Appeal to the Value Adjustment Board
• Litigation

Question 6

Who makes up the Value Adjustment Board?

Answer 6

5 MEMBERS

• 2 commissioners
• 1 School Board
• 2 Citizens

Question 7

Three types of property tax exemptions

Answer 7

• IMMUNE (govt property)
• EXEMPT (property owned by churches and non profits)

PARTIALLY EXEMPT (homesteaded property)

Question 8

Define Homestead tax exemptions

Answer 8

Florida residents who hold title to a home in Florida and use the home as their PERMANENT residence

Question 9

Additional $500 exemptions on homesteaded property

Answer 9

• Widows and Widowers
• Legally blind persons
• Non vetrans who are TOTALLY and PERMANENTLY disabled

Question 10

Who gets the $5,000 exemption???

Answer 10

Vetrans who are at least 10% disabled by military service-connected injury

Question 11

Green Belt Law

Answer 11

• Protects agricultural property from higher tax assessments
• Protects farmers from raised taxes (because thier land might be suited for development)

Question 12

Define Specific Lien

Answer 12

Attaches to a SPECIFIC property and not all assets of the owners

Question 13

Tax advantages of owning a principal residence

Answer 13

• Mortgage interest
• Property Taxes
• IRA withdraws for first time home owners
• Exclusion of gain from the sale of a principal residence

Question 14

Three deductions from taxable income on investment property

Answer 14

• Operating expenses
• Finance expense
• Depreciation

Question 15

What is the Straight-line method of depreciation for investment real estate

Answer 15

• 27 1/2 years for residential rental property
• 39 years for non-residential income producing property
• Depreciates structure only (Never Land)