California Real Estate Practice Exam.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 p
...
California Real Estate Practice Exam.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
You answered correctly
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
You answered correctly
4 of 50 - Which of the following is a credit to the seller on the
settlement statement?
Sales price
You answered correctly
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.
You answered correctly
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
You answered correctly
7 of 50 - Glenna and Amanda just bought their first home. They will
have a number of new expenses as a result of this purchase. Which of
these expenses is not associated with owning a home?
Personal property tax
You answered correctly
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