1 of 50 - Sal bought a personal residence for $150,000. He made
$150,000 of improvements during the three years he lived in it before he sold it. He sold the home for $750,000 and paid $50,000 in selling expenses, inclu
...
1 of 50 - Sal bought a personal residence for $150,000. He made
$150,000 of improvements during the three years he lived in it before he sold it. He sold the home for $750,000 and paid $50,000 in selling expenses, including the broker's commission. On what amount will he pay capital gains tax?
$150,000
You answered incorrectly
Remember that there is a $250,000 exclusion on capital gains tax for the sale of an individual's personal residence. So, $750,000 sale price –
($150,000 + $150,000) = $450,000 - $50,000 selling expenses = $400,000 -
$250,000 exclusion = $150,000 capital gain to be taxed.
2 of 50 - Which of the following would not qualify as a 1031 exchange?
A rental condominium for a recreational vehicle
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3 of 50 - When doing research to recommend a reasonable listing price for a home, the most critical part of the research deals with analyzing: Selling prices of recently sold homes
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4 of 50 - Which of the following is a credit to the seller on the settlement statement?
Sales price
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5 of 50 - Alex makes an offer to purchase one of Bill’s listings. Bill cannot contact the seller. In the meantime, Bill gets another offer on
the property from another buyer at a higher price. What should Bill do?
Present both offers to the seller.
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6 of 50 - Greg grew up in and lives in a rural area. He’s very
comfortable selling that type of property and knows he can work well with clients in that area. What property type will be his specialty?
Agricultural
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