Question 1

The assessment ratio of real property in a community may be

Accepted Answer

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. 
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.

Question 2

Choose the one most appropriate answer for each.
-sales price of a property less fix-up costs and sales commissions, closing and other selling costs

Accepted Answer

A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien 
A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien

Question 3

Choose the one most appropriate answer for each.
-a document conveying to property purchased at a tax sale

Accepted Answer

A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien 
A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien

Question 4

Records of the assessed valuations of all properties within a jurisdiction are known as

Accepted Answer

A)  appraisal rolls. 
B)  allocation rolls. 
C)  appropriation rolls. 
D)  assessment rolls. 
A)  appraisal rolls. 
B)  allocation rolls. 
C)  appropriation rolls. 
D)  assessment rolls.

Question 5

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.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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?

Accepted Answer

A)  $5,600 
B)  $33,600 
C)  $72,300 
D)  $74,400 
A)  $5,600 
B)  $33,600 
C)  $72,300 
D)  $74,400

Question 8

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?

Accepted Answer

A)  $7,000 
B)  $53,500 
C)  $46,500 
D)  None of the above 
A)  $7,000 
B)  $53,500 
C)  $46,500 
D)  None of the above

Question 9

A municipality is installing new sidewalks in a neighborhood. The cost of this project would most likely be paid for by means of

Accepted Answer

A)  individual contracts with property owners. 
B)  income taxes. 
C)  a dedication. 
D)  a special assessment. 
A)  individual contracts with property owners. 
B)  income taxes. 
C)  a dedication. 
D)  a special assessment.

Question 10

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

Accepted Answer

The answer of For income tax purposes, a single taxpayer...

Question 11

All of the following may be considered in calculating the cost basis of a property in a capital gain tax computation EXCEPT

Accepted Answer

A)  purchase price. 
B)  repairs or maintenance. 
C)  landscaping. 
D)  improvements. 
A)  purchase price. 
B)  repairs or maintenance. 
C)  landscaping. 
D)  improvements.

Question 12

Taxes on real property are levied

Accepted Answer

A)  on an ad valorem basis. 
B)  according to the value of the property. 
C)  both a and b. 
D)  neither a nor b. 
A)  on an ad valorem basis. 
B)  according to the value of the property. 
C)  both a and b. 
D)  neither a nor b.

Question 13

Persons wishing to defer federal income tax on the sale of a personal residence must have lived in the residence

Accepted Answer

A)  180 days. 
B)  six months. 
C)  one year. 
D)  two years of the last five. 
A)  180 days. 
B)  six months. 
C)  one year. 
D)  two years of the last five.

Question 14

Choose the one most appropriate answer for each.
-a document issued at a tax sale that entitles the purchaser to a deed at a later date if the is not redeemed

Accepted Answer

A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien 
A) adjusted sales price 
B) ad valorem tax 
C) amount realized 
D) appropriation process 
E) assessed value
F)assessment appeal board
G)assessment roll
H)basis
I)conveyance tax
J)documentary tax
K)front-foot basis
L)improvement district
M)installment method
N)long-term capital gain
O)mill rate
P)public improvement
Q)special assessments
R)tax certificate
S)tax deed
T)tax lien

Question 15

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

Accepted Answer

The answer of The first step in determining the amount...

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Plottage is likely to have which of the following results?

Accepted Answer

A)  Raising the tax bill 
B)  Raising the tax rate 
C)  Accelerating the lien date 
D)  Lowering the tax bill 
A)  Raising the tax bill 
B)  Raising the tax rate 
C)  Accelerating the lien date 
D)  Lowering the tax bill

Question 18

A property is assessed at $25,000. With a tax rate of $2.50 per hundred, what will the taxes be?

Accepted Answer

A)  $100 
B)  $625 
C)  $1,000 
D)  $6,250 
A)  $100 
B)  $625 
C)  $1,000 
D)  $6,250

Question 19

Taxes become a lien

Accepted Answer

A)  in advance. 
B)  only when delinquent. 
C)  in arrears. 
D)  when an assessment appeal is filed. 
A)  in advance. 
B)  only when delinquent. 
C)  in arrears. 
D)  when an assessment appeal is filed.

Question 20

What is the most correct meaning of the term "ad valorem"?

Accepted Answer

A)  Appraised value 
B)  Property tax 
C)  According to the value 
D)  And wife 
A)  Appraised value 
B)  Property tax 
C)  According to the value 
D)  And wife

Exam 14: Taxes and Assessments

The assessment ratio of real property in a community may be

Choose the one most appropriate answer for each. -sales price of a property less fix-up costs and sales commissions, closing and other selling costs

Choose the one most appropriate answer for each. -a document conveying to property purchased at a tax sale

Records of the assessed valuations of all properties within a jurisdiction are known as

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.

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

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 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 municipality is installing new sidewalks in a neighborhood. The cost of this project would most likely be paid for by means of

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

All of the following may be considered in calculating the cost basis of a property in a capital gain tax computation EXCEPT

Taxes on real property are levied

Persons wishing to defer federal income tax on the sale of a personal residence must have lived in the residence

Choose the one most appropriate answer for each. -a document issued at a tax sale that entitles the purchaser to a deed at a later date if the is not redeemed

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

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

Plottage is likely to have which of the following results?

A property is assessed at $25,000. With a tax rate of $2.50 per hundred, what will the taxes be?

Taxes become a lien

What is the most correct meaning of the term "ad valorem"?

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