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

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Flashcards in Chapter 17: Essentials Of New Jersey Real Estate. Key Terms Part 1 Deck (11):
1

Adjusted basis

The cost plus improvements, minus depreciation.

2

Appreciation

The increase in value.

3

Basis

The initial cost of real estate.

4

Bill of sale

The document transferring ownership of personal property.

5

Boot

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.

6

Bulk transfer act

The law regulating sale and financing of business personal property.

7

Capital gain

The profit on the sale of an asset.

8

Cash flow

The money left from rental income after expenses are paid.

9

Depreciation

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.

10

Exchange

The tax-deferred mutual transfers of income property.

11

Income property

The real estate held for rental income.