Section 18 TF Quiz

Question 1

Just value is defined as market value.

Answer 1

[A] A. True
B. False

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[Section 18A, Slide 36]

Question 2

A 1031 Exchange is used for primary residences to transfer the Save Our Homes benefit.

Answer 2

A. True
[A] B. False

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[Section 18D, Slide 59]; A like-kind exchange- usually a 1031 exchange, is when the investor sells one property to purchase another exchanging it. It is another way for investors to avoid paying real estate tax.

Question 3

If an investor can manage to hold real estate assets for longer than a year, they can benefit from a reduced tax rate on the capital gains (profits).

Answer 3

[A] A. True
B. False

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[Section 18D, Slide 42]

Question 4

Property tax is called an ad valorem tax because it is said to be based on a determined fair value of the property- not an arbitrary value.

Answer 4

[A] A. True
B. False

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[Section 18A, Slide 35]

Question 5

The Greenbelt law exemption is a partial exemption that protects agricultural land from being taxed by higher values base on highest and best use.

Answer 5

[A] A. True
B. False

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[Section 18B, Slides 67 & 68]

Question 6

Commercial rental property can be depreciated over 27.5 years using the straight-line depreciation method.

Answer 6

A. True
[A] B. False

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[Section 18D, Slide 32]; Residential property is depreciated over 27.5 years while commercial property is depreciated over 39 years.

Question 7

Special assessments are extra property taxes placed on property for public improvement that benefits the property owner such as street paving, sidewalks, and sewers.

Answer 7

[A] A. True
B. False

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[Section 18C, Slide 6]

Question 8

First-time homebuyer can withdraw up to $10,000 from an IRA without paying the early withdrawal penalty to use as a down payment on a home.

Answer 8

[A] A. True
B. False

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[Section 18C, Slide 46]

Question 9

If a homeowner disagrees with the assessed value of the property, the only course of action to take is to sue the local government.

Answer 9

A. True
[A] B. False

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[Section 18A, Slide 46]; Protest procedures for property assessments include meeting with property appraiser, filing an appeal with the Value Adjustment Board, and litigating in Court.

Question 10

Properties immune from property taxes include Public Schools, Municipal buildings, Police headquarters, and Fire Stations

Answer 10

[A] A. True
B. False

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[Section 18B, Slides 9 & 10]