Module 7 Flashcards
These are all examples of private land use controls, EXCEPT: A) Building Code B) Condo Bylaws C) Deed Restriction D) Subdivision Covenants
A) Building Code
The building code is a city function and not private.
If you have a listing in which there is an existing variance, the broker should get copies of the zoning variance and disclose it in the listing.
A) True
B) False
A) True
A man owns his property free and clear, but there is a restrictive covenant in favor of the State of Hawaii for mineral rights. If the owner wanted to mine the minerals, he would have to get a lease or permit from the Department of Land and Natural Resources.
A) True
B) False
A) True
An existing small family store in a residential neighborhood is sold. When you buy it, you would look into: A) Conditional use B) Non-conforming use C) Variance D) Continues as is
B) Non-conforming use
Non-conforming use occurs when the underlying zoning and the use of the building differs. The zoning of the land is residential, the use of the building is commercial and constitutes a non-conforming use.
In the master development plan now used by many cities, which of the following is included?
A) An analysis of recent and projected population growth
B) An analysis of transportation and traffic patterns
C) A study of areas that are or have been subjected to blight and decline
D) All of the above
D) All of the above
The county government agency that makes a preliminary determination of a non-conforming building structure is: A) A zoning board B) A building department C) The city council D) The planning department
B) A building department
Ohana zoning basically allows:
A) Two or more unrelated families to live in a dwelling in any single-family area
B) An additional dwelling to be built on a residential lot, provided it meets all county requirements
C) An additional building to be build on a lot developed under a Planned Unit Development
D) An additional dwelling to be built on any lot without restrictions as to location
B) An additional dwelling to be built on a residential lot, provided it meets all county requirements
The ohana zoning allows the landowner to supercede the density allowed for the subject property and build a second unit under specific guidelines.
Which of the following statements about owning investment property is correct?
A) Accrued depreciation increases the property basis
B) Gain is taxed at the taxpayer’s ordinary income tax rate or long term capital gains rate
C) Cost of improvements is used to reduce basis
D) Major repair costs are currently deductible
B) Gain is taxed at the taxpayer’s ordinary income tax rate or long term capital gains rate
The government gives the investor tax incentives to invest in real property and has a lower tax rate if the property is held for more than one year.
Unpaid real property taxes are usually considered to be: A) Promissory notes B) Restrictions C) Solvent credits D) Liens
D) Liens
Unpaid taxes for more than 3 years usually results in a tax foreclosure sale.
To defer payment of a portion of federal income tax on realized gain, principal payments received in the year of the sale on an installment sale must remain under what percent of the total price? A) 29% B) 30% C) 35% D) No limit
D) No limit
Clients should always check with their CPA or tax advisor for specific tax advice. There is no limit on how much principal the seller can receive in a given year under the current law.
A taxpayer is allowed to deduct repairs made to which one of the following? A) Property held for investment B) Appliances in the home C) Personal residence D) Church property
A) Property held for investment
Investment properties have a different set of rules from personal residences.
Assessed value for the land is $22,000 and the improvements are $50,000. The owner has the basic tax exemption of $40,000. The rate is $15 per $1,000. What is the actual tax paid? A) $1,080 B) $480 C) $330 D) $750
B) $480
A man is 76 years old and his wife is 62. They reside in their home as their primary residence. They would be entitled to three times the normal tax exemption.
A) True
B) False
A) True
True. The base exemption in Hawaii is $40,000 for owner occupied residences. The exemption amount increases with the age of the oldest owner on title. A person over 70 years old has an exemption of $120,000.
Which is true about real estate property taxes?
A) An assessment is the measure the county uses to determine the amount of real property taxes
B) The assessed value, minus home exemption divided by 1,000 times the tax rate equals the tax bill
C) Both of the above
D) None of the above
C) Both of the above
For a 40-year-old individual to qualify for the $250,000 exemption under the 1997 IRS Tax Law changes, the person:
A) Must be 55 years of age or older
B) Must own only one residence
C) Must buy a new residence for a price higher than the one sold within 2 years
D) Must have occupied the residence for at least 2 of the last 5 preceding years
D) Must have occupied the residence for at least 2 of the last 5 preceding years
The new tax law on the sale of primary personal residence has no age limit and the homeowner can sell his primary personal residence every 2 years to benefit from the tax law.
A couple filing jointly can exempt $500,000 from taxes:
A) If their exclusion is not used more than once in 2 years
B) Provided they occupied the dwelling 4 of the last 5 years
C) Unless they used the over 55-year/$125,000 rule prior to May of 1997
D) Never. This conflicts with the 2-year rollover rule
A) If their exclusion is not used more than once in 2 years
