Module 6 - Marital Home Sale and Valuation Flashcards
What is a Capital Gain?
A profit from the sale of a property or investment.
Capital gains are typically subject to taxation.
Define Cost Basis.
The original value of an asset for tax purposes.
Cost basis is used to calculate capital gains.
What does Emancipation refer to?
The point at which a minor child comes of age.
Emancipation can occur at ages 18, 19, or 21, or through marriage, full-time employment, graduation from high school, or entering the armed services.
At what age are children typically emancipated?
18, 19, or 21.
Emancipation also occurs through specific life events such as marriage or military service.
What does emancipation signify for parents?
Parents have no further legal or financial obligations for a child’s support.
This legal status changes the responsibilities of parents towards their child.
What does it mean if a loan is described as Underwater?
A loan having a balance that exceeds the current market value of the loan.
This situation can occur during housing market downturns.
Define Quitclaim Deed.
A deed that conveys to the grantee only such interests in property as the grantor may have.
The grantee assumes responsibility for any claims brought against the property.
