Taxation

Question 1

Closing expenses paid by the sellers are generally

Not deductible

Added to the buyers basis

Deductible against ordinary income

Deductible get selling price and profit

Answer 1

Deductible again selling price and profit

Question 2

In order to clean the universal exclusion

The property must have been the principal residence for the last 24 months

One of the spouses must be 55 on or before December 31 in the year of the property was sold

Both of the spouses must be 55 on or before the date of closing

The property must have been your primary residence for two years of the last five years

Answer 2

The property must have been your primary residence for two of the last five years

Question 3

In the sale of a personal residence the taxpayers text done

The full price less sales commission

Gain over $250,000 if she is single

The full sales price

The net proceeds check

Answer 3

Gain over $250,000 if she’s single

Question 4

Which of the following expenses may be deducted by a buyer when purchasing a new personal residence

Credit report cost

Discount points

Appraisal fee

Mortgage insurance premium

Answer 4

Discount points