Settlement Flashcards
Which of the following CANNOT be deducted from your income tax as applies to your residence?
a. Interest and Property Taxes
b. Discount Points
c. Prepayment Penalties
d. Principal portion of house payments
d.Principal portion of house payments
Interest CANNOT be deducted for:
All personal residences
What you originally pay for a property is the ____ _____.
cost basis.
T/F. Depreciation allows you to get out of paying taxes.
False
An ordinary taxpayer would receive the greatest benefit from a: Credit? or Deduction?
Tax Credit
On the National test, for taxes and loans, there are _________ days in a year and _______ days in a month.
360, 30
The title insurance policy issued to cover the lender is called an ALTA/lenders policy.
True
A policy issued to cover the buyer is a(n):
a. Standard Owner’s Policy
b. Extended Lender’s Policy
c. Extended Buyer’s Policy
d. Standard Buyer’s Policy
A
T/F. The borrower buys title insurance to protect the seller.
False
The seller buys title insurance to protect the buyer.
True
If you do not pay your taxes, the government can obtain a _________ against you.
Lien
Cost + Improvements - Cost Recovery (depreciation) = __________ ____ _____
Adjusted Cost Basis.
Depreciation can only be taken on ___________ property.
Investment
T/F. You cannot depreciate land or your personal residence.
True
Property tax is assessed according to value, making it an ad valorem tax.
True
In Utah, property taxes are due __________ 30. They become delinquent the following December1st. Unpaid property taxes become a lien against the property on ________ ___ (date).
November, January 1st
The county cannot foreclose for ____ years (period of redemption).
4
To turn a number of mills into a decimal, move the decimal 3 places to the left. For example, write 133.9 mills as a decimal
.1339
The major difference between an ALTA (or owner’s extended) policy and the Standard Owner’s policy is:
A site visit
