Chapter 18: Taxes Affecting Real Estate (MC) Flashcards Preview

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Flashcards in Chapter 18: Taxes Affecting Real Estate (MC) Deck (15):
1

Real estate taxes are of the most importance to

a. the federal government.
b. the state government.
c. local government.
d. local nonprofit organizations.

c. local government.

2

The county property appraiser determines the

a. tax rate.
b. market value.
c. assessed value.
d. just value.

c. assessed value.

3

Greenbelt laws

a. limit the assessed value on agricultural land in or near urban areas.
b. help to raise the tax base.
c. provide for the best use of land.
d. prevent land from being used for development.

a. limit the assessed value on agricultural land in or near urban areas.

4

Property owners that pay their real estate tax bill in November are entitled to a discount of

a. 1%
b. 2%
c. 3%
d. 4%

d. 4%

5

Which statement would be correct regarding a homeowner who sold a principal residence and itemized deductions on his or her federal income tax return?

a. Any capital gain realized from the sale is taxable at a reduced rate.
b. All capital gain would be subject to tax at the taxpayer's marginal rate.
c. A loss of up to $3,000 on the sale may be deducted from adjusted income.
d. Up to $250,000 may be excluded from taxation if the taxpayer had occupied the residence for at least 2 of the past 5 years.

d. Up to $250,000 may be excluded from taxation if the taxpayer had occupied the residence for at least 2 of the past 5 years.

6

To qualify for a homestead tax exemption an individual must

a. own the property.
b. own and use the home as a primary residence.
c. file for a homestead tax exemption by March 31.
d. live in his or her principal residence for the entire year.

b. own and use the home as a primary residence.

7

In Florida, the owner of a homestead property located outside the city limits would be required to pay property taxes levied

a. on the total assessed value of the property.
b. by the nearest city.
c. by the county and school board.
d. by the state of Florida.

c. by the county and school board.

8

Who can appraise property for purposes of taxation?

a. the county property appraiser
b. the local school board
c. the city in which the property is located
d. special taxing districts

a. the county property appraiser

9

How is 10 mills express as a decimal?

a. 1.00
b. .100
c. .010
d. .001

c. .010

10

Special assessments are used to pay for

a. school bonds.
b. sidewalks, sewer and other public improvements that benefit the property owner.
c. city services in excess of operating revenues.
d. new public structures such as sport facilities.

b. sidewalks, sewer and other public improvements that benefit the property owner.

11

If a property owner fails to pay property taxes, the resulting lien is

a. held by the county until the certificate is sold.
b. owned by the county property appraiser.
c. foreclosed on by the sheriff.
d. sold at public auction as a tax certificate.

a. held by the county until the certificate is sold.

12

According to Florida's Save Our Homes Act, the assessed value of homestead property cannot be increased in any one year by more than

a. the lesser of 3% or the CPI.
b. the greater of 3% or the CPI.
c. 10 mills.
d. an amount determined by the country property appraiser.

a. the lesser of 3% or the CPI.

13

Homeowners that file itemized tax returns are allowed deductions for which of the following items?

a. real estate taxes and repairs
b. hazard insurance and depreciation
c. real estate taxes and mortgage interest
d. mortgage interest and utilities

c. real estate taxes and mortgage interest

14

Which statement is correct with respect to homeowner insurance coverage?

a. all losses are covered.
b. flood losses are limited to $25,000.
c. personal property is not covered.
d. homeowners with multiple policies will not receive the full amount of their loss from both companies.

d. homeowners with multiple policies will not receive the full amount of their loss from both companies.

15

The interest payable on tax certificates is

a. based on the lowest bid received.
b. never lower than 18%.
c. negotiable between property owner and bidder.
d. established by law.

a. based on the lowest bid received.

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