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Chapter 19 Practice Questions - Page 2

Chapter 19: Taxes Affecting Real Estate. Practice Florida real estate questions and review the explanation for each answer. Page 2.

46 practice questions

  1. Chapter 19 The "Installment Sale Method" benefits the seller by:
  2. Chapter 19 A "Like-Kind Exchange" (1031 Exchange) enables a taxpayer-investor to:
  3. Chapter 19 A homesteaded property is assessed at $350,000. The millage rates are: City 6 mills, County 7 mills, School 8 mills. What are the total property taxes due?
  4. Chapter 19 A legally blind widower owns a homesteaded property assessed at $45,000. Based on the provided text ($5,000 per additional exemption), what is the total tax exemption amount for City and County taxes?
  5. Chapter 19 When does a "Special Assessment" become a lien on the property?
  6. Chapter 19 An investor purchased a small residential apartment complex in March for $1,250,000. The appraisal specified that 80% of the total purchase price was allocated to the value of the building, and 20% was allocated to the land. The investor made a 20% cash down payment of $250,000 and financed the remainder of the purchase. What is the annual IRS depreciation allowance for this property? (Round to the nearest dollar.)
  7. Chapter 19 A legally blind widow owns a primary residence assessed at $410,000. What is her total homestead exemption for county taxes?
  8. Chapter 19 A real estate agent is explaining the benefits of Florida’s Green Belt Law to a client interested in purchasing a 50-acre citrus grove. Which statement made by the agent would be considered FALSE?
  9. Chapter 19 A homeowner has a lot with 80 feet of street frontage. The city is paving the road at a cost of $50 per running foot and has agreed to cover 30% of the total expense. What will be the homeowner's special assessment for this project?
  10. Chapter 19 A widower owns a homesteaded principal residence assessed at $350,000. The city tax rate is 7.0 mills, the county rate is 8.0 mills, and the school district rate is 6.0 mills. What are the total property taxes owed?
  11. Chapter 19 An investor is attending a county property tax certificate auction. The auctioneer opens the floor for the first delinquent property. According to state law, what is the maximum annual interest rate the investor can legally collect on this certificate?
  12. Chapter 19 A married couple filing jointly sells their primary residence in Florida, realizing a total net profit of $650,000. Assuming they meet all ownership and use requirements, how will the IRS treat this profit?
  13. Chapter 19 A married homeowner who files their federal income taxes separately. Under current IRS regulations, what is the maximum amount of capital gains she can exclude from the sale of this property?
  14. Chapter 19 A young couple recently closed on their first primary residence. While preparing for the upcoming tax season, they consult with a CPA to understand their new tax benefits. Which of the following expenses or benefits related to their homeownership is NOT legally allowable under current IRS rules?
  15. Chapter 19 An investor sells a vacant commercial lot using seller financing and opts for the installment sale method. How must the financial outcome of this transaction be reported to the IRS?
  16. Chapter 19 A CPA is explaining the concept of a "tax shelter" to a client who recently purchased an apartment building. To accurately describe how this specific financial benefit is achieved in real estate, the CPA should state that it is an investment where: