Real Estate Tax Quiz

What is the taxable gain of a property that sold for $1,100,000 with an adjusted basis of $525,000...?

• $575,000 (Dollars)

• $1,100,000 (Dollars)

• $500,000 (Dollars)

• $525,000 (Dollars)

Under the Taxpayer Relief Act of 1997, a buyer can use up to how much of their IRA fund towards a down payment, without being subject to an early withdrawal penalty...?

• $20,000 (Dollars)

• $500,000 (Dollars)

• $10,000 (Dollars)

• $250,000 (Dollars)

This type of income is associated with the sale of a property...?

• Operations income

• Passive income

• Active income

• Capital gains

When executing a 1031 Exchange, how many days does an owner have to identify a new property...?

• 180 day

• 30 days

• 60 days

• 45 days

What is the Adjusted Basis on a property using the following criteria: Original Purchase Price: $500,000, Capital Improvements: $89,000, Depreciation: $184,000?

• $316,000 (Dollars)

• $405,000 (Dollars)

• $684,000 (Dollars)

• $227,000 (Dollars)

When calculating the amount of taxes to be paid on a property, the tax rate is multiplied by this number...?

• Taxable Income

• Net Income

• Effective Gross Income

• Gross Income

The original cost of a property minus depreciation and sales of portions thereof, plus allowable additions such as capital improvements and certain carrying costs and assessments, is referred to as...?

• Capital Gain

• Adjusted Basis

• Cash Flow

• Boot

This type of income is realized by the owner during the year-to-year operations of the property...?

• Operation income

• Capital gains

• Market income

• Residual income

The depreciable basis for a single family residence is $225,000. Using the straight-line depreciation method, what is the allowable annual depreciation for the property...?

• $8,181.82 (Dollars)

• $16,324.54 (Dollars)

• $5,769.23 (Dollars)

• $11,353.65 (Dollars)

Which of the following types of depreciation is relevant to real estate...?

• Unit-of-production depreciation

• Capital depreciation

• Economic depreciation

• Material depreciation