Real Estate Taxes

The video tutorial explains estate taxes, focusing on property taxes and taxes on gains from property sales. It covers local property taxes, including mileage rates and exemptions like homestead exemptions. The tutorial also discusses state and federal taxes on property disposition, highlighting deferments such as 10/31 exchanges. Exemptions for gains, particularly for primary residences, are detailed, along with short-term and long-term capital gains tax rates.

What is another term used for property taxes?

• Mileage rate

• Ad valorem

• Capital gains

• Sales tax

Which exemption can reduce the amount you pay in property taxes if you live on the property?

• Age exemption

• Sales exemption

• Income exemption

• Homestead exemption

What is a 10/31 exchange?

• A method to defer property tax

• A way to reinvest gains from a property sale

• An exemption for primary residence sales

• A short-term capital gains tax

How much gain can a married couple exempt from the sale of their primary residence under federal code?

• $750,000

• $1,000,000

• $500,000

• $250,000

What tax rate applies to short-term gains from property sales?

• Zero percent

• 15 percent

• 20 percent

• Personal income tax rate

What is the long-term capital gains tax rate for most people?

• 25 percent

• 15 or 20 percent

• 30 percent

• Zero percent

What determines the capital gains tax rate for long-term property sales?

• The property's size

• The property's location

• The owner's age

• The owner's income level