Chapter 11 - Taxation of Real Estate Flashcards Preview

RE51 Quizzes - Real Estate Practice > Chapter 11 - Taxation of Real Estate > Flashcards

Flashcards in Chapter 11 - Taxation of Real Estate Deck (20)
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1
Q

who is the County officer who has the responsibility of determining the assessed valuation of land, improvements, and personal property used in business

A

the County Assessor

2
Q

anything that increases the usefulness of the structure, such as the addition of a bedroom or bathroom, is an example of

A

a taxable alteration

3
Q

a rough estimate of property tax is approximately

A

1.25 per cent of the sales price

4
Q

in California, the annual property tax increase is limited to

A

2%

5
Q

escrow prorates property taxes using a

A

using the sellers tax bill

6
Q

the primary responsibility for disclosures of any Mello-Roos Bond lies with

A

the seller

7
Q

which of the following can be deducted from personal taxes

A

property taxes on personal residence, interest paid on personal residence, and prepayment penalties paid on a personal residence

8
Q

which of the following can be depreciated for tax purposes

A

only the building or other improvements on income, and trade or business property

9
Q

income tax rates are an example of

A

Progressive taxes

10
Q

the sales of real estate in which the payments for the property extend over more than one calendar year is a

A

installment sale

11
Q

taxes were the rates increase as the amount to be taxed increases are an example of

A

Progressive taxes

12
Q

in a 1031 exchange, boot is defined as

A

cashier mortgage relief

13
Q

inventory of property is held primarily for sale to customers is referred to as

A

dealer property

14
Q

which of the following does not qualify for tax-free Exchange

A

dealer property

15
Q

under IRS Section 1031, any real property held for investment that can be exchanged for another investment property is referred to as

A

like-kind property

16
Q

taxes that use the same rate no matter how much is earned are referred to as

A

regressive taxes

17
Q

an example of a regressive tax is the

A

sales tax

18
Q

the broker does not have to see that 10% of the sales price is held in escrow if

A

the residential property is less than $300,000, the property is non-residential, the seller signs an Affidavit of non foreign status

19
Q

which of the following is a factor in classifying a broker as a dealer

A

frequency of sales, dollar volume, and subdivision activity

20
Q

if the seller is a foreigner or a resident of another state, California tax collection requirements put the burden on

A

the buyer