Closing Or Settlement

Question 0

Affidavit of the seller

Answer 0

Is doc. From time sale contract was accepted until date of closing has done nothing to burden the title

Question 1

Settlement agent

Answer 1

Could be closing agent from title co. An attorney, a lender, or a real estate agent

Question 2

What is a bill of sale?

Answer 2

Used to show the transfer of personal property

Question 3

What is payoff statement?

Answer 3

Indicates the payoff of the sellers existing note

Question 4

How do u show payment of home owners insurance?

Answer 4

By a insurance policy

Question 5

RETT

Answer 5

Real estate transfer taxes

Question 6

Real estate transfer taxes

Answer 6

Are state, county, and municipal sales taxes often used as general revenue.

Usually paid by seller or lessor when the property is conveyed by deed, lease, sub lease, or assignment

Question 7

Tax shelters

Answer 7

Reduce current tax liability by offsetting income from one source with losses from another

Question 8

Capital gain

Answer 8

Is a taxable profit that is realized from the sale or exchange of a capital asset.

Question 9

Capital gain exclusions
For:

Married:

Single:

Answer 9

Married: 500,000

Single: 250,000

Question 10

Depreciation

Answer 10

Cost recovery

Form of tax deduction, allows investor to recover the cost of an income-producing property used in a trade

Question 11

Like-kind property

Answer 11

Allows trade

If no cash(boot) = tax free

If cash(boot) = tax must be paid on the boot

Question 12

Capital improvement

Answer 12

Any improvement made to extend the useful life of a property or add to its value