Real Estate 101 - Real Estate Principles » Fall 2021 » Chapter14 Quiz
Need help with your exam preparation?
Get Answers to this exam for $6 USD.
Get Answers to all exams in [ Real Estate 101 - Real Estate Principles ] course for $25 USD.
Existing Quiz Clients Login here
Question #1
Any net cash or net mortgage relief that a participant in an exchange might receive in addition to the actual property is known as:
A.
boot.
B.
none of the answers are correct.
C.
tax free.
D.
booty.
Question #2
Municipal bonds issued to fund streets, sewers and other infrastructure needs before a subdivision is built and paid for by the purchaser are called:
A.
Mello-Roos Liens.
B.
Bond Act Issuance.
C.
Installment Bonds.
D.
Vrooman Act Bonds.
Question #3
For income tax purposes, you may deduct what portion of your house payment?
A.
none of the answers are correct.
B.
Principal only
C.
Interest only
D.
Principal and interest
Question #4
When do property taxes become a lien (before the fiscal year starts)?
A.
February 1
B.
January 1
C.
July 1
D.
November 1
E.
Question #5
The first installment of property taxes is due on November 1st. When is it delinquent?
A.
November 10
B.
March 1
C.
December 10
D.
July 1
Question #6
Each year property taxes in California (Proposition 13) are allowed to increase by what percentage?
A.
5%
B.
10%
C.
2%
D.
1%
Question #7
Which of the following non-profit organization’s real properties are usually exempt from property taxes?
A.
Charitable
B.
Medical or educational
C.
Religious
D.
Religious, Charitable and Medical or educational
Question #8
With regards to depreciation of real property, which of the following is TRUE according to income tax laws?
A.
Investment property cannot be depreciated.
B.
The land can be depreciated, but not the improvements.
C.
The land and improvements can be depreciated.
D.
The land cannot be depreciated, but the improvements can.
Question #9
The documentary transfer tax is charged on money borrowed or cash down payments at the rate of:
A.
55 cents per $500.
B.
$1 per $1,000.
C.
50 cents per $500.
D.
none of the answers are correct.
Question #10
A single person can avoid paying capital gains taxes on up to what amount of profit from the sale of a residence?
A.
$250,000
B.
$125,000
C.
$100,000
D.
$500,000
Question #11
Compared to ordinary income tax rates, capital gains are taxed:
A.
at a lower rate.
B.
at a higher rate.
C.
at a more regressive rate.
D.
at the same rate.
Question #12
The sale of real estate in which the payments for the property extend over more than one calendar year is called a(n):
A.
tax deferred exchange.
B.
none of the answers are correct.
C.
installment sale.
D.
sale-leaseback.
Question #13
The homeowner’s property tax exemption will reduce an assessed valuation of $200,000 to:
A.
$190,000
B.
$193,000
C.
$150,000
D.
$175,000
Question #14
A married couple can exclude from taxable income up to what amount of profit from the sale of a residence?
A.
$125,000
B.
$250,000
C.
$500,000
D.
$100,000
Question #15
If property taxes are NOT paid by June 30, the property:
A.
remains undisturbed for five years, starts a five year redemption period and is sold to the state.
B.
starts a five year redemption period.
C.
is sold to the state.
D.
remains undisturbed for five years.
Question #16
A property owner CANNOT deduct depreciation on what type of real property?
A.
Residential
B.
Trade
C.
Business
D.
Income
Question #17
If you sell your house, how do you determine your gain or loss?
A.
Subtract only adjusted price basis
B.
Subtract only adjusted cost basis
C.
Subtract adjusted cost basis from adjusted sale price
D.
Subtract nothing
Question #18
A city tax on a real estate brokerage firm’s gross receipts is called a:
A.
business stamp tax.
B.
business transfer tax.
C.
business property tax.
D.
business license tax.
Question #19
An owner can deduct a “loss” on the sale of residential property if that property:
A.
is a condominium.
B.
has a homeowner’s exemption filed on it.
C.
is a second residence.
D.
has been converted into rental property.
Question #20
A homeowner can deduct from income taxes all the items listed below, except:
A.
property taxes.
B.
depreciation.
C.
prepayment penalties
D.
interest on a trust deed.
Need help with your exam preparation?
Get Answers to this exam for $6 USD.
Get Answers to all exams in [ Real Estate 101 - Real Estate Principles ] course for $25 USD.
Existing Quiz Clients Login here