Q&A Hero

Q: The sale of an appreciated property structured to spread out the payment of income taxes on the gain is called a(n) ____________________ sale.

Q: A charge or hold by the government against a property to ensure the payment of taxes is called a ____________________.

Q: The property tax rate that is expressed in tenths of a cent per dollar of assessed valuation is called the ____________________ rate.

Q: For income tax purposes, a single taxpayer can exclude up to ____________________ of gain from the sale of the taxpayer's principal residence.

Q: In calculating the gain on the sale of a residence for income tax purposes, it is necessary to calculate the amount ____________________ from the sale.

Q: The first step in determining the amount of taxable gain upon the sale of an owner-occupied residence is to calculate the home's ____________________.

Q: In a residential neighborhood, the assessment for installation of storm sewers, curbs, and gutters is made on a _________________________ basis.

Q: In some states, the board of ____________________ performs the task of equalizing assessment procedures between counties.

Q: The assessed value of all lands and buildings are made available for public inspection in what is known as the ____________________ rolls.

Q: When local budgets along with a list of sources from which the money will be derived, is enacted into law, it is called the ____________________ process.

Q: A public improvement benefits the general public and is financed through a general property tax.

Q: In some states the board of equalization equalizes assessment procedures between counties.

Q: A municipality is installing all new traffic signals. The cost of this project would most likely be paid for by means of a bond issue.

Q: The appropriation appeals board hears complaints from property owners regarding their assessments.

Q: The sale of an appreciated property structured to spread out the payment of income taxes on the gain is called the installment method.

Q: A fee or tax on deeds and other documents payable at the time of recordation is known as a special assessment fee.

Q: The property tax rate expressed in tenths of a cent per hundred dollars of assessed valuation is called the mill rate.

Q: Long-term capital gain is a preferential income tax treatment on the sale of an appreciated asset.

Q: A document issued at a tax sale that entitles the purchaser to a deed at a later date if the is not redeemed is known as a tax deed.

Q: Taxes on real property are levied on an ad valorem basis.

Q: Local government programs and services are financed primarily through state income taxes.

Q: In calculating "basis" for income tax purposes, one must take into consideration the market value of similar properties.

Q: The cost of installing a residential street in a city will most likely be paid by means of special assessment.

Q: If a property owner feels over assessed, he would file a complaint with the tax certification board.

Q: If the property taxes are not paid, the property is sold at a public auction.

Q: When a special assessment tax is imposed by a municipality for new neighborhood streets and the bill is not paid within the allotted time, the lien automatically goes to bond and is payable over 30 years.

Q: The property tax rate may be expressed as a mill rate, dollars per thousand or dollars per hundred.

Q: Real property taxes are levied by the government and become a lien monthly.

Q: The amount of property taxes an owner pays is determined by the services provided by the city or county.

Q: Publicly available books that show assessed valuations are called assessment valuation books.

Q: Records of the assessed valuations of all properties within a jurisdiction are known asa. appraisal rolls.b. allocation rolls.c. appropriation rolls.d. assessment rolls.

Q: Which of the following would be the highest tax rate? a. 38 mills b. $3.80./$100 c. $38/$1,000 d. no difference

Q: Tax rates may be expressed as a. a millage rate. b. dollars of tax per hundred dollars of valuation. c. dollars of tax per thousand dollars of valuation. d. any of the above.

Q: The assessment ratio of real property in a community may be a. 100 percent of its appraised value. b. more than its fair market value. c. more than its appraised value. d. any of the above.

Q: Taxes on real property are levied a. on an ad valorem basis. b. according to the value of the property. c. both a and b. d. neither a nor b.

Q: Local government programs and services are financed primarily through a. property taxes. b. federal income taxes. c. state income taxes. d. state sales taxes.

Q: An investor sells his real property using an installment sale. His capital gains tax would be due a. never, if he owned the property for more than one year. b. after the last installment s paid. c. the year of the sale. d. as he receives the payments.

Q: Persons wishing to defer federal income tax on the sale of a personal residence must have lived in the residence a. 180 days. b. six months. c. one year. d. two years of the last five.

Q: In order to determine taxable gain on a residence, the a. basis must be subtracted from the amount realized from the sale. b. closing costs are subtracted from the sale price. c. basis and the amount realized from the sale must be the same. d. sales price is subtracted from the basis.

Q: A home with a cost basis of $40,800 in 2003 is resold today for $80,000. Commissions and closing expenses are $5,600. What is the adjusted sales price? a. $5,600 b. $33,600 c. $72,300 d. $74,400

Q: A woman sold her residence of 3 years for $96,500 and immediately invested in another residence at a sales price of $150,000. Assuming a basis of $46,500 in the original property, how much taxable gain will she have to report on this sale? a. $7,000 b. $53,500 c. $46,500 d. None of the above

Q: A home with a cost basis of $40,800 in 2005 is resold today for $90,000. Commissions and closing expenses are $6,300. What is the gain on the sale? a. $6,300 b. $42,900 c. $83,700 d. $82,600

Q: All of the following may be considered in calculating the cost basis of a property in a capital gain tax computation EXCEPT a. purchase price. b. repairs or maintenance. c. landscaping. d. improvements.

Q: In a special assessment district, which occurs first? a. Bonding b. Hearing c. Confirmation d. Assessment collection

Q: The following public improvements would most probably be funded by a special assessment EXCEPT a. installation of street lights. b. curbs. c. reconstruction of city sewage plant. d. widening of neighborhood streets.

Q: The theory of special assessment allocation is that the improvement benefits the a. land in the district. b. structures in the county. c. people in the equalization area. d. businesses in the district.

Q: A municipality is installing new sidewalks in a neighborhood. The cost of this project would most likely be paid for by means of a. individual contracts with property owners. b. income taxes. c. a dedication. d. a special assessment.

Q: When a home owner feels his property has been assessed too high and files an appeal, the burden of proof is on the a. appraiser chosen by the home owner. b. assessor's staff appraiser. c. homeowner. d. county supervisor.

Q: The tax rate on a property is $3.32 per $100 of assessed valuation. The assessed value is $55,864. What is the annual tax payment? (round to the nearest dollar)a. $185b. $594c. $592d. $1,855

Q: A property is assessed at $25,000. With a tax rate of $2.50 per hundred, what will the taxes be?a. $100b. $625c. $1,000d. $6,250

Q: If a home sold for $124,000 and was assessed at 80% of its value, how much would the property taxes be at a rate of $18.20 per thousand dollars of assessed value?a. $992.00b. $1,444.35c. $1,805.44d. $2,256.80

Q: A lot measured 50" on a county road and 80" deep. The county assessor valued the lot at $15,000. The tax rate is $100 per front foot. The tax bill isa. $1,500.b. $5,000.c. $8,000.d. incalculable without the millage rate.

Q: If an owner's semiannual property taxes on a $90,000 home are $840 and the house is assessed at 80% of value, what is the tax rate per thousand dollars of evaluation?a. $11.66b. $18.66c. $23.33d. $720.00

Q: How is the priority of property tax liens established? a. By the county tax assessor's decision which is final b. By the amount of the lien compared to others c. They have priority no matter when recorded d. By the date of recording

Q: Taxes become a lien a. in advance. b. only when delinquent. c. in arrears. d. when an assessment appeal is filed.

Q: What is the most correct meaning of the term "ad valorem"? a. Appraised value b. Property tax c. According to the value d. And wife

Q: All of the following benefit from property taxes EXCEPT a. school budget. b. municipal stadium. c. public libraries. d. parks.

Q: A city or county sponsored public improvement is most appropriately financed by a. general property taxes. b. an improvement district. c. an assessment district. d. federal income taxes.

Q: Plottage is likely to have which of the following results? a. Raising the tax bill b. Raising the tax rate c. Accelerating the lien date d. Lowering the tax bill

Q: Property taxes are a. levied according to square footage. b. a lien until paid. c. based on income of the owner. d. an encroachment until paid.

Q: A ____________________ mortgage encompasses existing mortgages and is subordinate to them.

Q: Under a construction loan, also called a(n) ____________________ loan, money is advanced as construction takes place.

Q: With a ____________________ mortgage, the lender makes monthly payments to the homeowner.

Q: A mortgage secured by two or more properties is called a ____________________ mortgage.

Q: A loan where items classed as personal property are included with the real estate is called a(n) ____________________ mortgage.

Q: The type of ARM loan with an enticingly attractive below-market initial rate is called a ____________________ rate adjustable.

Q: With the ____________________ payment mortgage, the interest rate and maturity are fixed but the monthly payment gradually rises.

Q: When monthly payments are not sufficient to pay the interest due and the difference is added to the loan balance, this is called ____________________ amortization.

Q: The ____________________ is added to the index rate for the lender's cost of doing business.

Q: The interest rate on an ARM is tied to a(n) ____________________ rate.

Q: It is possible for individuals to buy second lien notes.

Q: With a purchase made by an installment contract or land contract title immediately passes to the purchaser.

Q: Some real estate agents and lenders refer to a loan that is carried back by a seller as a purchase money mortgage.

Q: The Asset Integrated Mortgage is designed to create a savings from the down payment and is applicable to borrowers who wish to make minimal down payments.

Q: FIRREA and the Community Reinvestment Act provided strong incentives for private lenders to engage in affordable housing loans.

Q: Equity mortgages are typically first lien mortgages that are used to tap the increase in equity resulting from rising home prices and first loan principal reductions.

Q: A package mortgage involves several properties under the same mortgage.

Q: "Rich uncle " financing is a variation of equity sharing.

Q: Equity sharing provides that in return for providing financing, the lender wants to share in some of the benefits normally reserved for the equity holder.

Q: The objective of a graduated payment mortgage is to help borrowers pay off their loans more rapidly.