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14 Cards in this Set
- Front
- Back
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ad valorem tax/ real property tax |
taxes based on the assessed value of property |
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market value |
price someone SHOULD/WOULD pay if property is properly marketed and neither party is under duress. |
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assessed value |
MV x Uniform percentage= assessed value |
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formula for actual tax owed |
tax owed=(assessed value/100) x Tax Rate |
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homestead tax option |
allows approved assessing untis to apply seperate tax rates to diff categories: -homestead: 1-4 untis, owner occuppied, mobile homes, condos & coops, farms, vacant and suitable for qualified buildings -non-homestead: 5 family, industrial, commercial, and most vacant land |
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4 grounds to challenge a tax assessment |
-excessive assessment -unequal assessment: accessed at diff % -unlawful assessement -misclassified assessment: |
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tax certiorari |
legal action challenging an assesment |
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Most tax foreclosures are IN REM |
IN REM are lawsuits legal action directed at property instead of particular person
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which entity in NY cannot levy property taxes |
state |
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Taxpayer Relief Act of 1997 created Section 121 of the Internal Revenue Code. |
Section 121 provides some relief to taxpayers by exempting most if not all of the gain from selling house. Limit on total allowable Exclusion amount for: -single person: $250,000 -maried couple: $500,000 |
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calculating realized gain |
sales price - selling expenses= amount realized orignal cost + capital improvements= adjusted basis realized gain= amount realized - adjusted basis |
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capital asset |
something owned long term (1 year & 1 day). Appreciates over time. Financial investments, stocks and bonds, real property,colletibles. |
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straight line depreciation |
equal amount of asset's price will be expenses each year of its useful life. -Residential rental property is depreciated over 27.5 years -nonresidential property is depreciated over 39 years. |
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Like-kind exchanges |
IRC section 1031 allows taxpayer to sell an investment property and purchase another in its place without paying taxes on the proceeds from the sale. 1. transaction must be an exchange not sale (not solely for cash?) 2. structured as tax-deferred exchanges 3. properties exchanged must be used for business 4. properties must be like-kind or similar |
