Unit 8 Flashcards
(15 cards)
What is the major source of funding for governmental functions?
A. Farmland taxes
B. Ad valorem taxes
C. Special Assessment Taxes
D. Improvement taxes
B. Ad valorem taxes
Ad valorem taxes are taxes based on the assessed value of an item, as opposed to a fixed amount. The term “ad valorem” is Latin for “according to value”. The most common type is property tax.
How is the tax rate generally expressed?
A. Dollars per thousands of assessed value
B. Dollars per hundred of assessed value
C. Equalization rates
D. Special equalization factors
B. Dollars per hundred of assessed value
When do taxes on real properties become a lien on the property?
A. As soon as the assessment roll is confirmed
B. At change of title
C. June 30 of the year the assessment roll is confirmed
D. January 1 of the year the assessment roll is confirmed
D. January 1 of the year the assessment roll is confirmed
Who evaluates the real estate for tax purposes?
A. Licensed appraiser
B. Building inspector
C . County assessor
D. Local zoning board
C . County assessor
A house is valued at $120,000 and is assessed for 80% of its value. The tax rate is $26.34 per for 80% of its value. The tax rate is $26.34 per $1,000. How much is the tax bill?
A. $252.86
B. $316.08
C. $2,528.64
D. $3160.80
C. $2,528.64
$120,000 times %80 is $96,000, that times the tax rate (26.34/$1000) equals $2,528.64.
The homeowners on a small cul-de-sac have
asked for new streetlights in the area. What form
of tax will be assessed of these homeowners to
pay for the improvement?
A. An ad valorem tax
B. Eminent domain
C. A special assessment
D. A conditional-use tax
C. A special assessment
What property owners may be eligible for a deduction of or waiver from the requirement to pay general ad valorem taxes?
A. homeowner of low-priced housing.
B. An owner of a working farm with more than 50 acres
C. A tenant in a qualified mobile home community.
D. A senior citizen with limited income.
D. A senior citizen with limited income.
- Which of these types of property is eligible for a different assessment rate?
A. Park districts
B. Forest preserves
C. Certain agricultural properties
D. Churches
C. Certain agricultural properties
- What project will be funded by a special assessment?
A. Building a bypass around the city
B. Paying for street lighting
C. Constructing a new school
D. Expanding a community college
B. Paying for street lighting
A New Jersey property is going to be sold to pay delinquent taxes. What rights does the property owner have during the statutory period to reclaim the property?
A. The owner can repay back taxes, penalties, and interest.
B. The owner can file a claim for “return of property” in the tax office.
C. The owner can pat up to four times the amount of the delinquent taxes.
D. The property may not be reclaimed.
A. The owner can repay back taxes, penalties, and interest.
Under what circumstances may a seller avoid taxes on a $250,000 profit from the sale of the seller’s home?
A. The seller must be over the age of 55 on the date of the sale
B. The seller must purchase a replacement home of equal or greater value within two years of the sale
C. The seller must have owned and occupied the home for at least two of the previous five years.
D. The seller must be married on the date of the sale.
C. The seller must have owned and occupied the home for at least two of the previous five years.
A single person who bought her home 18 months ago is moving to take a new job in another city. A married couple who file jointly have owned their nine-bedroom home for only three years, but they now want to move to a smaller condominium unit. Another/single owner, who has lived in his home for the last 17 years wants to use the proceeds from his sale to purchase a larger house. Which of these people is entitled to the $250,000 exclusion from the federal capital gains tax?
A. The single person who bought her home 18 months ago.
B. The single person who owned his home for 17 years.
C. The married couple who have owned their home for three years
D. Both single persons
B. The single person who owned his home for 17 years.
How often may the exclusion from property gains be used by a property owner?
A. When at least one of the owners turns 55
B. Every five years, if both parties are over the age of 55
C. Every three years, if at least one of the owners is being transferred for employment
D. Every two years, if occupied by the owner(s)
D. Every two years, if occupied by the owner(s)
What is the federal capital gains tax exclusion available to married homesellers who jointly file their income taxes?
A. Depends on the value of the home
B. $250,000
C. $500,000
D. More than $1 million
C. $500,000
Which of the following taxpayers is permitted to make a penalty-free withdrawal from their IRA to assist their home purchase?
A. A married couple selling their small condominium to buy a larger home
B. A single person buying her first home
C. A single person selling her small condominium to buy a larger home
D. Any single person
B. A single person buying her first home
