Chapter 17: Essentials Of New Jersey Real Estate. Key Terms Part 1

Question 1

Adjusted basis

Answer 1

The cost plus improvements, minus depreciation.

Question 2

Appreciation

Answer 2

The increase in value.

Question 3

Basis

Answer 3

The initial cost of real estate.

Question 4

Bill of sale

Answer 4

The document transferring ownership of personal property.

Question 5

Boot

Answer 5

The extra money received by one party in an exchange. Money or property given to make up any difference in value or equity between two parties in an exchange.

Question 6

Bulk transfer act

Answer 6

The law regulating sale and financing of business personal property.

Question 7

Capital gain

Answer 7

The profit on the sale of an asset.

Question 8

Cash flow

Answer 8

The money left from rental income after expenses are paid.

Question 9

Depreciation

Answer 9

The yearly bookkeeping charge for part of the initial cost. Loss of value due to any cause including physical deterioration, functional obsolescence and location lots of lessons. For income tax it is the yearly write-off of a percentage of the cost of a building as an expense.

Question 10

Exchange

Answer 10

The tax-deferred mutual transfers of income property.

Question 11

Income property

Answer 11

The real estate held for rental income.