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9 Cards in this Set
- Front
- Back
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A married couple bought their house ten years ago for $150,000. Last week, they sold their home for $255,500. Based on these facts, how much capital gains tax will the couple have to pay this year?
a. None b. $ 7,550 C c. $ 11,325 d. $ 75,500 |
a. None
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Which of the following BEST expresses the concept of equity?
a. Current market value minus capital gains b. Current market value minus property debt c. Current market value minus cost of land d. Replacement cost minus depreciation |
b. Current market value minus property debt
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A couple bought a house in 1968 (when they were 21 years old) for $25,000 andhave lived in it ever since.
Today, the neighborhood is very fashionable, and he house sells for $450,000. How much of the gain is taxable on the couple's joint return this year? a. $25,000 b. All c. None d. $637,000 |
c. None
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Efforts to increase home ownership include all the following EXCEPT:
a. requiring lower down payments b. offering adjustable-rate mortgages c. penalizing first-time homebuyers for using funds from IRA's d. lowering closing costs for first-time homebuyers |
c. penalizing first-time homebuyers for using funds
from IRA's |
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The real cost of owning a home includes certain cost/expenses that many people overlook. Which of the following is NOT such a cost/expense of home ownership?
a. Income lost on cash invested in the home b. Interest paid on borrowed capital c. maintenance and repair expenses d. personal property taxes |
d. personal property taxes
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Damage from which of the following is NOT covered in a basic homeowners' policy?
a. fire and lightning b. explosion c. windstorm and hail d. flood |
d. flood
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Most homeowners'insurance policies contain which clause?
a. property improvement clause b. co-insurance clause c. co-ownership clause d. property devaluation clause c. |
b. co-insurance clause
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That portion of the value of an owners'property that exceeds the amount of their mortgage debt is called:
a. equality b. escrow c. surplus d. equity |
d. equity
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In a real estate transaction, the term fiduciary typically refers to the
a. sale of real property b. person who gives someone else the legal power to act on his or her behalf c. person who has legal power to act on behalf of another d. agent's relationship to the principal |
d. agent's relationship to the principal
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