1 of 10 - A totally disabled veteran could be eligible for a property tax exemption of up to what amount?
$50,450
$100,730
$191,266
$206,850
You answered correctly
2 of 10 - According to FIRPTA, what percent would a buyer who is buying the property as a personal residence need to withhold when purchasing a $200,000 home from a foreigner?
0%
15%
3.30%
10%
You answered incorrectly
FIRPTA requires a buyer to withhold estimated taxes equal to 15% of the sale price in any sale of property owned by a foreigner unless the property will be used as the buyer's personal residence and sells for under $300,000. So, a $200,000 purchase price would be exempt from the withholding requirement.
3 of 10 - When is the first installment of property taxes due?
First of February
Tenth of April
First of November
Tenth of December
You answered incorrectly
The timetable for property taxes in California sets the due date for the first installment for half the taxes as November 1 and the due date for the second installment for the balance of the taxes as February 1.
4 of 10 - Homeowners can deduct all but which of the following from their income taxes?
Mortgage interest
Depreciation
Prepayment penalties
Property taxes
You answered incorrectly
Although investors can deduct depreciation of improvements on their investment properties, homeowners can typically only deduct mortgage interest, property taxes, and prepayment penalties from their annual income taxes.
5 of 10 - Which proposition limited the maximum amount of tax on real property?
Proposition 13
Proposition 58
Proposition 60
Proposition 90
You answered correctly
6 of 10 - Bill and Brenda bought their home for $150,000 seven years ago and have lived in it ever since. They made $50,000 of improvements. They sold the home for $450,000 and paid $30,000 in selling expenses, including the broker's commission. On what amount will they pay capital gains tax?
$0
$100,000
$250,000
$300,000
You answered correctly
7 of 10 - How long must buyers and brokers keep the documentation on a foreign sale?
2 years
3 years
4 years
5 years
You answered incorrectly
In California, brokers and buyers must keep the documentation on the sale of real property by foreign persons for 5 years.
8 of 10 - How can a seller lessen the tax impact of selling a home for enough profit that he or she will be boosted to a much higher tax bracket?
There is nothing that can offset this problem.
Do a tax-free exchange instead.
Participate in a tax shelter program.
Do an installment sale.
You answered incorrectly
Since sellers are taxed on the capital gains when selling a home, using an installment sale spreads the gains over more than one calendar year and prevents the seller from having to pay taxes on the entire gain in one year.
9 of 10 - When a person acquires new property, which is true?
The owner has 30 days to notify the county assessor.
The seller must file a bill of sale with the county clerk.
The owner has 45 days to pay the new property taxes.
The owner has 45 days to file a change in ownership statement.
You answered incorrectly
Any person who acquires property that is subject to taxes must notify the county recorder or assessor by filing a change in ownership statement within 45 days of the date of recording or, if not recorded, within 45 days of the ownership change or pay a penalty.
10 of 10 - Mike bought his home last year for $150,000. His property taxes would be assessed at:
