The notes below are intended only to supplement a complete and diligent review of the related chapter in your course text. Studying these notes alone is not expected to be adequate test preparation.

 

 

Taxes

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Simply knowing the real estate language is half the battle in preparing oneself for the examination. This exercise will help to commit the terminology to memory. Read the definition on the left and then recite the term being defined. Place your mouse pointer over the maroon colored box to the right of the definition to reveal the correct answer.

 

A tax which is levied according to the property's value
The value assigned to a property for the purposes of taxation
A tax levied against a property to cover a share of an improvement
Used for income tax purposes, it is the price paid for the property including any recourse loan obligation and certain other fees involved in acquisition
Tangible or intangible long term assets; for IRS purposes, any asset except; inventory and property held primarily for the sale to customers
The profit realized from the sale of a capital asset
A deduction for tax purposes
A tax lien holders remedy after two years have passed
To assess; to impose a tax
Used to compute property taxes it is the equivalent of one-tenth of 1 cent
Properties that provide tax income for local government
A tax imposed only against the specific properties that will benefit, through an increase in value, as a result of a local improvement
A document given to the purchaser at a tax sale
A lien which takes priority over all other liens, regardless of when filed, due to unpaid property taxes
A sale by a taxing authority due to unpaid taxes