Chapter 11: Taxation of Real Estate Flashcards
(30 cards)
Value placed upon property, for property tax purposes, by the tax assessor.
Assessed valuation
The sale of property in installments that spreads tax on profit from the sale of property over a number of years.
Installment sale
A tax charged according to the value of the property.
Ad valorem
One who gives a gift.
Donor
A tax against the property of deceased, based on the value of the estate.
Federal estate tax
One who receives a gift.
Donee
In a tax-deferred exchange, any cash or other property including the transaction to make the exchange in an even proposition.
Boot
The trading of parcels of real property to obtain tax benefits that might not be available any normal sale. Generally considered tax-deferred, not tax exempt.
Exchange
An annual tax that applies to real estate that is based on the assessed valuation of the property.
Real property tax
One who estimates the value of property for property tax purposes.
County assessor
A loss in value of improvements as an accounting procedure: used as a deduction on income taxes.
Depreciation for tax purposes
The person, in a given political division within a state, who is responsible for collecting property taxes.
County collector
A lien assessed against real property in a given district, by public authority, to pay costs of special public improvements.
Special assessment
A tax on the sale of real property, usually based on the sales price and paid on or before the recordation of the dead.
Documentary transfer tax
Federal taxes paid on the giving of real property as a gift, if over an exempt amount.
Federal gift tax
Limits the amount of taxes to a maximum of 1% of the March 1, 1975 market value of the property plus the cumulative increase of 2% in market value each year thereafter.
Proposition 13
Personal taxes paid annually on your taxable income.
Federal and state income tax
A deduction of up to $7,000 from an owner-resident’s assessed valuation on his or her property tax bill. Must be filed between March 1 and April 15 each year to receive the full deduction.
Homeowner’s property tax exemption
The length of time a couple must live in their house to qualify for a $500,000 exclusion.
Two of the last five years
The amount that is exempt if a single person sells his or her house.
$250,000
1031 Exchange.
The County assessor accumulates a list of all private owners of real property in his or her jurisdiction. The assessment roll is used to:
a. set the tax rate for each year.
b. establish the tax base for the county.
c. determine the taxes to be paid by individual property owners.
d. equalize the assessment throughout the county.
b. establish the tax base for the county.
Senior citizens may be able to defer the payment of the property taxes on their residence. In order to find out if they qualify for the program, the senior citizen should contact the:
a. Real Estate Commissioner.
b. State Franchise Tax Board.
c. State Housing Authority.
d. County Tax Assessor.
b. State Franchise Tax Board.
The difference between property taxes and special assessments is that:
a. assessment liens are always subordinate to property tax liens.
b. assessment liens can only be levied by local improvement districts.
c. foreclosure of assessment liens can only be achieved by court foreclosure.
d. special assessments are levied for the cost of specific local improvements, while property tax revenue goes into the general fund.
d. special assessments are levied for the cost of specific local improvements, while property tax revenue goes into the general fund.
The Street Improvement Act of 1911 can be used by a developer for all the following, except:
a. constructing sewers.
b. improving streets.
c. constructing streets.
d. purchase of land for subdividing.
d. purchase of land for subdividing.
