Unit 18 Key Terms Flashcards
adjusted basis
The owner’s original cost plus buying expenses plus capital improvements.
ad valorem
Latin phrase meaning “according to the value”.
assessed value
Worth established for each new unit of real property for tax purposes by a county property appraiser.
assessment limitation (SOH benefit)
The accumulated difference between the assessed value and the market value of a homestead property due to limit on increases in the assessed value.
boot
Money or other property that is not like-kind, which is given to make up any difference in value or equity between exchanged properties.
capital gain
The profit(or loss) from the sale of an asset, including real property.
debt service
the amount of money needed to meet the periodic payments of principal and interest on a loan that is being amortized.
depreciation
A loss in value for any reason; a deduction for tax purposes.
exempt properties
Properties that have been decreed to be excluded from taxation or claim by others.
Green Belt Law
Legislation that authorizes county property appraisers to assess land used for agricultural purposes according to its current value as agricultural land.
immune properties
Real property that is owned by a unit of government and is not subject to taxation.
installment sale
The seller receives the proceeds from the sale in periodic payments over time.
just value
The fair market value.
like-kind exchange
An exchange of real property held for investment for another property held for investment that qualifies for deferment of takes from gain on the sale.
mill
A unit of money used to specify a property tax rate ($1 for each $1,000 of taxable value).
special assessment
Taxes levied against properties to pay for all, or part of, improvements that will benefit the properties being assessed.
tax rate
The percentage of value that is used to determine the amount of tax to be levied against each individual unit of property; ad valorem(according to the value).
taxable income
Gross income minus tax deductions; net operating income plus reserve for replacements minus financing costs and allowable depreciation.
taxable value
The assessed value less allowable exemptions resulting in an amount to which the tax rate is applied to determine property taxes due.
The owner’s original cost plus buying expenses plus capital improvements.
adjusted basis
Latin phrase meaning “according to the value”.
ad valorem
Worth established for each new unit of real property for tax purposes by a county property appraiser.
assessed value
The accumulated difference between the assessed value and the market value of a homestead property due to limit on increases in the assessed value.
assessment limitation (SOH benefit)
Money or other property that is not like-kind, which is given to make up any difference in value or equity between exchanged properties.
boot
The profit(or loss) from the sale of an asset, including real property.
capital gain
the amount of money needed to meet the periodic payments of principal and interest on a loan that is being amortized.
debt service
A loss in value for any reason; a deduction for tax purposes.
depreciation
Properties that have been decreed to be excluded from taxation or claim by others.
exempt properties
Legislation that authorizes county property appraisers to assess land used for agricultural purposes according to its current value as agricultural land.
Green Belt Law
Real property that is owned by a unit of government and is not subject to taxation.
immune properties
The seller receives the proceeds from the sale in periodic payments over time.
installment sale
The fair market value.
just value
An exchange of real property held for investment for another property held for investment that qualifies for deferment of takes from gain on the sale.
like-kind exchange
A unit of money used to specify a property tax rate ($1 for each $1,000 of taxable value).
mill
Taxes levied against properties to pay for all, or part of, improvements that will benefit the properties being assessed.
special assessment
The percentage of value that is used to determine the amount of tax to be levied against each individual unit of property; ad valorem(according to the value).
tax rate
Gross income minus tax deductions; net operating income plus reserve for replacements minus financing costs and allowable depreciation.
taxable income
The assessed value less allowable exemptions resulting in an amount to which the tax rate is applied to determine property taxes due.
taxable value
