When a tax certificate is issued, it means what?
A public auction is held.
Property taxes are delinquent.
The property has been sold at auction.
The state files a tax deed application.
The Jacksons have lived in their home for the last 25 years, and have $50,000 in SOH protections. They will be moving soon to a newer home, which is more expensive. How much of their accumulated SOH protections may they transfer to their new home?
$0
$10,000
$25,000
$50,000
______ taxes are a reliable source of income for the state because they are difficult to conceal, their value tends to remain relatively steady, and people tend to pay them.
Federal
Income
Property
Sales
To calculate property taxes, multiply the ______ by the tax rate.
Amount of mortgage interest
Assessed value
Market value
Square footage of the property
The Save Our Home amendment limits increases in the assessed value of homestead properties to what amount per year?
1%
10%
15%
3%
Property owners who wish to request to file a petition with the Value Adjustment Board (VAB) must do so within ______ days of receiving their TRIM notice.
10
15
25
30
What is the purpose of the Save Our Homes amendment?
Protects Florida homesteads from bankruptcy
Protects Florida homesteads from being sold for back taxes
Protects Florida homesteads from investors
Protects Florida homesteads from rapid increases in assessed value
How is ad valorem property tax calculated?
By adding the tax rate to the property’s assessed value
By dividing the property’s assessed value by the tax rate
By multiplying the property’s assessed value by the tax rate
By subtracting the tax rate from the property’s assessed value
For homeowners who qualify, the maximum homestead tax exemption for non-school taxes is _______________.
$25,000
$5,000
$50,000
$75,000
A pair of property owners applied for an exemption on their Florida homestead and it was denied. They do not agree with the decision. Which of the following should they do?
File a suit against the county property appraiser and the county tax collector.
Refuse to pay their taxes.
Send the TRIM notice back with a letter stating their opinion.
Submit an alternative proposal to the county appraiser.
First Baptist Church does not have to pay property taxes. Which type of property is this?
Exempt
Homestead
Immune
Partially exempt
The Browns are selling their Florida homestead to the Millers. Over the past 20 years, the property has appreciated considerably. Which of the following is true?
The Browns and the Millers must split the SOH protections.
The Browns cannot transfer any portion of the SOH protections to their new home.
The Millers will inherit the SOH protections on the home when they purchase it.
The sale of the home may trigger a reassessment.
Which one of the following characteristics makes property taxes a reliable target for taxation?
They don’t hold their value.
They have a high compliance rate.
They have high collection costs.
They’re easy to conceal.
The term “ad valorem” is Latin for ______.
“According to value”
“Adding strength”
“By the year”
“Required taxes”
Why would an investor purchase a tax certificate for a property?
In order to earn interest on the amount due.
It gives them ownership of the property.
To make sure the property is not auctioned.
To prevent the owner from redeeming the property.
When Florida property taxes become delinquent, what happens?
A public auction is held.
A tax certificate is issued.
A tax certificate is sold.
The state can file a tax deed application.
In order for Thom and Josie to exempt a portion of their primary residence’s value from property tax, they must file a homestead application with the county appraiser’s office before March 1. What other requirement must they meet?
They must both be over the age of 65.
They must have at least one other Florida residence on which they pay real estate taxes.
They must have had legal title for at least one year.
They must have had legal title since January 1.
Owners of agricultural land must classify their land for protection by ____________ of each year.
April 1
December 31
January 31
March 1
A property owner wishes to protest her property tax assessment, so she did not make the required payment on her taxes by the due date. The property taxes are now delinquent. Which of the following is true?
The owner is not liable for the taxes until the VAB makes a determination.
The owner must pay her taxes by the date of her hearing with the VAB.
The owner’s petition to the VAB will be denied.
The owner will be given additional time to pay her taxes once the dispute is settled.
When a special assessment uses a front-foot basis, the property owner is charged a specific dollar amount for what?
Each dollar of assessed value
Each linear foot of paved driveway
Each linear foot of property that is along the street
Each square foot of property
The property of ________________ is exempt from taxation.
Business owners
Churches and non-profit organizations
Government agencies
Those belonging to an individual who is over the age of 65
What is assessed value?
A figure used to calculate the amount of money needed for a down payment
A percentage of market value; also the amount of property value to which the tax rate is applied
The amount applied by local government to individual parcels of real estate that will benefit from road or other infrastructure improvements
The probable sales price if the property were listed today and a willing seller and buyer were involved in the transfer of ownership
Thom and Josie have lived in their Florida home for 15 years and it is their permanent residence. If they wish to exempt a portion of their home’s value from property taxes what must they do?
Apply for a homestead tax exemption.
Nothing; the exemption is automatic.
Request immunity for their home.
Sell their home.
Ad valorem taxes are based on what?
The property’s assessed value
The property’s market value
The property’s mortgage value
The property’s square footage
Laura’s property is subject to a special assessment. Which of the following is true?
The amount of the special assessment does not become a lien against her property like ad valorem taxes.
The special assessment is deductible for income tax purposes.
The special assessment must benefit Laura’s property.
The special assessment will not accumulate interest.
The assessed value of a property is ______.
A percentage of market value and the value to which the tax rate is applied
The same thing as list price when a house goes on the market
The same thing as market value
The value of property taxes assessed
Which of the following is true about special assessments?
They are always involuntary.
They are always voluntary.
They do not become liens against the property on which they are imposed.
They may be voluntary or involuntary.
What’s the purpose of an assessor’s parcel number?
To identify a property for tax purposes
To identify the assessor assigned to a particular property
To identify the number of parcels an assessor has revalued
To provide a numeric rating related to a parcel’s size
Which of the following is true about Florida’s homestead tax exemption?
It can be used for second homes.
It can be used only once during the life of the property.
Property owners must file a homestead application in order to qualify.
The exemption is automatic and requires no action from the property owner.
Property taxes generate approximately ______ of local government revenue.
Half
One quarter
One tenth
One third
Albert is over the age of 65 and legally blind. He qualifies for _________________ from property taxes.
Exemption
Immunity
No exemption
Partial exemption
When something is evaluated according to ______, this is called finding the value on an ad valorem basis.
Its cost to build
Its estimate
Its value
The majority
When a petition is made to the Value Adjustment Board (VAB) for a property on which the taxes are delinquent, what happens?
A tax certificate is sold.
The petition is denied.
The petition is given priority.
The property owners are granted an extension of time to pay the taxes.
Gary and Anita wish to protest their property tax assessment by petitioning the Value Adjustment Board (VAB). What is the time frame in which they must do this?
Any time before the taxes are due.
Within 10 days of receiving the TRIM notice.
Within 25 days of the date the TRIM notice was mailed.
Within 30 of the payment due date.
Dan lives in Florida and his primary residence has homestead status. Which of the following is true?
His property tax liability will not increase.
His property tax liability will not increase for three years.
The assessed value of his home will not increase.
The assessed value of his home will not increase more than 3% over last year.
Which of the following is true regarding the tax protest procedure in Florida?
Property owners have no option but to seek relief through the courts.
Property owners may not petition the VAB directly.
Property owners may petition the VAB without first meeting with the county property appraiser.
Property owners must first meet with the county property appraiser or file an appeal before petitioning the VAB.
Which of the following describes property taxes?
Federal taxes that are raised locally to finance federal government programs
Taxes that are raised and spent locally to finance public services
Taxes used to finance state government
Taxes used to offset federal aid to public programs within the state
A property is purchased for $420,000 and $336,000 of it is financed. The assessed value of the property is $387,000. The property appraisal came in at $432,000. Which of these amounts is used in calculating the property tax?
$336,000
$387,000
$420,000
$432,000
In Florida, what is the amount of the homestead exemption available for non-school taxes?
$25,000
$5,000
$50,000
$75,000
What is the maximum amount of SOH protections which can be transferred to a new home?
$10,000
$100,000
$50,000
$500,000
For homeowners who qualify, the homestead tax exemption is _______________ from the assessed value of the home for school taxes.
$25,000
$5,000
$50,000
$75,000
What is the name for a type of property that is subject to property tax, but is released from the obligation?
Exempt
Homestead
Immune
Partially exempt
If a Florida property owner has a lien on their property for property taxes, what does it mean?
A public auction will be held to collect the taxes.
The state can file a tax deed application.
The taxes are delinquent.
The taxes have not been paid yet.
A couple met with the county property appraiser to dispute the assessed value of their home. However, their request for adjustment was denied. What else can they do?
File a petition with the property appraiser.
File a petition with the VAB.
Refuse to pay their property taxes.
Request a second meeting.
Homeowners may transfer the SOH benefit to a subsequent home. In order to do this, their homestead exemption must have been in place on their current home for _________________ preceding years.
One of the previous two
The last 10
The last five
The last two
What’s market value?
A figure used to calculate the amount of real property tax
The amount of property value to which the tax rate is applied
The amount the local government applies to individual parcels of real estate that will benefit from road or other infrastructure improvements
The probable sales price if the property were listed today and a willing seller and buyer were involved in the transfer of ownership
What is a tax certificate?
A document stating that the property has been redeemed from delinquency.
A legal document issued for a property with delinquent property taxes.
A tax document showing the amount of taxes paid.
Proof that a property will be auctioned for delinquent taxes.
What is the purpose of the Save Our Homes amendment in Florida?
Protects Florida homesteads from bankruptcy
Protects Florida homesteads from being sold for back taxes
Protects Florida homesteads from investors
Protects Florida homesteads from rapid increases in assessed value
Angie and Terrell have just found out that there is a lien on their property for real estate taxes. What does this mean?
A public auction will be held.
A tax certificate will be issued to collect the taxes due.
The state can file a tax deed application.
They haven’t paid their property taxes yet.
What must owners of agricultural land do each year in order for it to qualify for protection under the Green Belt Law?
Agree not to sell it for a period of five years.
Pay their property taxes by December 31 of each year.
Request an exemption from property tax.
Request classification of the land each year by March 1.
Which type of property tax is based on the value of the property?
Ad valorem
In rem
Market value
Special assessments
If a Florida property owner fails to pay their property taxes and a tax certificate is issued on their property, which of the following is true?
A public auction is held.
The property owner may not redeem the property.
The property owner may still pay the taxes and redeem the property.
The state can file a tax deed application.
The income from what reliable source benefits the entire community by funding essential services and public works?
Private donations
Property taxes
Special assessments
The federal government
Thom and Josie have lived in their Florida home for 15 years and it is their permanent residence. The value of their home is $350,000. What amount of their home’s value can they exempt from school taxes?
$25,000
$5,000
$50,000
$75,000
Jessica and Eric’s home has homestead status. The just (market) value of their home is $200,000, and they have $20,000 in SOH protections. What is the assessed value of their home after the SOH protections are applied?
$160,000
$180,000
$200,000
$220,000
Which of the following would be considered an “immune” property?
Church
County courthouse
School
United Way headquarters
Alison and Jake’s house is subject to a special assessment and they are required to pay 100% of the cost. If the rate is $10 per front foot and they have 200 feet of street frontage on their lot, what will the amount of their special assessment be?
$200
$2,000
$2,500
$5,000
What’s a special assessment?
A levy local government applies to individual parcels of real estate that will benefit from road or other infrastructure improvements
The amount of property value to which the tax rate is applied
The probable sales price if the property were listed today and a willing seller and buyer were involved in the transfer of ownership
The tax rate which is applied to an assessed value
Which of the following is true about the Florida Green Belt Law?
It allows agricultural properties to be assessed at a lower rate.
It allows all properties to be assessed at a lower rate.
It allows investors to buy agricultural property at a lower rate.
It makes agricultural properties exempt from property tax.
What is the purpose of special assessments?
Fund government housing
Fund schools
Pay for community improvements
Pay government salaries
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Mariel is buying a home and is looking forward to the tax deductions. She may deduct which of the following costs?
Closing costs
Furnishings purchased on credit
Loan origination fee
Utility costs
For tax years 2018 to 2025, a borrower can write off the interest on a home equity loan only if ______.
Debt is kept under $5,000
The funds are used to buy, build, or improve the home that secures the loan
The homeowner is a first-time homebuyer
The loan is for less than $50,000
A taxpayer can claim a capital gains exclusion _______.
Every year, provided a transfer of real property has occurred
Once every five years
Once every two years
On every type of real estate sale
Which one of the following options includes an item that is deductible on an income tax return if specific criteria are met?
Closing costs
Furnishings
Loan origination fee
Travel
Homebuyers who withdraw individual retirement account (IRA) funds under the first-time homebuyer program must use those funds within how long to acquire, build, or improve a residence, or to contribute toward closing costs?
120 days
180 days
60 days
90 days
Which of the following is a true statement about deducting interest on mortgages taken out in tax years between 2018 and 2025?
Interest on the first $500,000 of mortgage debt is deductible for married couples filing jointly or $375,000 for married couples filing separately.
Interest on the first $750,000 of mortgage debt is deductible for married couples filing jointly or $375,000 for married couples filing separately.
The loan can be used for purchase or making improvements, as well as for other purposes.
The loan cannot be for more than the borrower’s most recent year’s salary.
John just sold the home where he’s lived for eight years and made a nice profit. Which of these statements about the profit he made is FALSE?
He can include depreciation costs in the adjusted basis he uses to calculate the amount of his capital gains.
He’ll be allowed to exclude some or all of the amount of his capital gains from his income tax liability.
If he made any improvements to the property, the cost of those improvements is included in his adjusted basis.
In order to determine the amount of his capital gains for tax purposes, he needs to first know his adjusted basis.
Daniel purchased a home in January of 2010 and then sold the property in October of 2014 for a gain of $5,500. What type of capital gain is this?
Appreciated
Long-term
Short-term
Temporary
Homeowner Sophie moves around the country a lot for her job and has bought and sold several homes over the last decade. If she sells a home for more than she paid for it, how often may she claim the capital gains exclusion?
Every time she sells a home she’s lived in as her personal residence
Once every five years
Once every two years
Once in her lifetime
Rosie wants to make an offer on a home, but she’s having trouble coming up with a down payment. She can withdraw $10,000 from her IRA for this purpose without incurring a penalty, but only under what circumstances?
She hasn’t been a homeowner during the last two years.
She intends to keep the home as her personal residence for at least two of the next five years.
She pledges to pay the amount back to her IRA, with interest, within five years.
She’s never owned a home before.
What one of the following options describes a restriction regarding point deductions?
Can’t rent out the property
Minimum 20-year loan
Must be primary residence
Paid cash for property
George and June Dobson are a married couple who bought their home three years ago, though they lived in it for only 18 months before traveling abroad and renting it out. Now they’ve been offered a price that’s $300,000 more than they paid for it, so they’ve decided to sell. What’s true about this situation?
They can exclude as much as $250,000 of their capital gains from the sale when filing their income taxes, as long as they file jointly.
They can exclude the entire amount of their capital gains from the sale when filing their income taxes as long as they file jointly.
They won’t be allowed to exclude the capital gains from the sale when they file their income taxes because they lived in the home for fewer than two of the preceding five years.
They won’t be allowed to exclude the capital gains from the sale when they file their income taxes because they owned the home for fewer than five years.
Ed is a licensee who’s always eager to help his clients in any way he can. One of his current clients has received an offer that will give her a tidy profit on her home. She tells Ed she’s worried about her tax liability when the home sells. What can Ed tell her that will be most helpful?
“I believe you’ll be allowed to exclude some of that profit from your taxable income, but you should definitely consult with a tax professional to find out the best way to handle it.”
“I wish I could help you with that, but as a real estate licensee, I’m not allowed to offer tax advice.”
“The Taxpayer Relief Act of 1997 will help you avoid paying any taxes on the profit you make from selling your home as long as you’ve been living there for the last couple of years.”
“You’ll be allowed to exclude as much as $250,000 of capital gains from the sale of your home if you’re filing as a single taxpayer. It would be as much as $500,000 if you were married and filing jointly.”
Ida and Barry are buying a home. They’ll withdraw money from their traditional IRA to help with the down payment and closing costs. What’s NOT true about this withdrawal?
The amount they can withdraw for this purpose is $10,000 or less.
They can exclude the amount of the IRA withdrawal when filing their income taxes.
They must use the money within 120 days of withdrawal for the purpose of acquiring, improving, or building their home, or they’ll be charged a penalty.
They won’t pay a penalty on this withdrawal even though they’re both 58 years old.
What type of capital gain is considered short term?
A gain on a property owned 10 years or less
A gain on a property owned five years or less
A gain on a property owned one year or less
A gain on a property owned two years or less
What type of IRS deduction can be taken for a vacation home?
Home improvement costs
Loan servicing fees
Points
Property tax
Which one of the following is a charge you would pay to your lender to arrange the financing for a home loan?
Document fee
Lender usury fee
Origination fee
Transfer fee
The capital gains exclusion for couples filing jointly who have lived in their primary residence at least two of the five years immediately preceding the sale of the home is up to $500,000. What is the capital gains exclusion for single taxpayers?
$150,000
$250,000
$300,000
$75,000
Donald purchased a property five years ago. He lived in the property for a year, then rented it out to a family friend. Now he is selling the property for a capital gain of $10,000. Can he exclude the gain from his taxes?
No, he did not live in the home for two of the preceding five years.
No, he is not currently residing in the home.
No, the gain is not large enough to exclude.
Yes, he can exclude the gain.
Payden sold his home and made a nice profit. His real estate agent told him he can offset his capital gains from what home costs?
Capital improvements
Fire mitigation
New bathtub
Utilities
Clay and Myra are about to close on their first home. Based on where they are in the property ownership life cycle, which one of the following tax-related items is likely to be of the most interest to them?
Capital gains
Depreciation
Mortgage interest deduction
Points deduction
How often can the capital gains exclusion be claimed?
Every year
Once
Once every three years
Once every two years
Over the life span of owning a home, homeowners may be able to take advantage of what tax benefits?
Capital gains
Capital losses
Points deduction
Property tax deduction
A homeowner sells his house for $325,000 more than he bought it for. When he files his income taxes, how much of this profit may he exclude from his capital gains if he’s filing as a single taxpayer?
$150,000
$200,000
$250,000
All of it
How are real estate transactions affected by the Taxpayer Relief Act of 1997?
First-time homebuyers may exclude the value of the purchased property from assets used to determine income their tax bracket.
Homebuyers may borrow against their income tax refund to pay for or improve a personal residence, and homeowners may exclude the cost of capital improvements from taxable income when filing.
Homebuyers may use IRA funds to acquire, build, or improve a residence, or for closing costs, and home sellers may exclude some capital gains from the sale from their income tax.
Homeowners may claim a loss on their income tax if their home’s value falls below the amount they paid for it.