1031 Exchange
How many days from the close of the original escrow do your clients have to name targets
45 Days
Prop 19 effectively killed which long standing CA prop?
Prop 13
A Single person can sell their owner occupied home in Ca and keep how much capital gains tax free?
250K
The amount of money you pocket each month
Cash Flow
How many days from the close of escrow do your clients have to close escrow on the new property
180 Days
How does Prop 13 or inherited basis still remains even with the new rules in prop19?
Owner occupied to Owner Occupied
A married couple can sell their owner occupied home and keep how much of their capital gains tax free
500K
Money spent on improvements that extend the life of an investment
Capital Expenditure
When you sell an asset for more than is basis, the additional income is considered?
Capital Gains
Prop 19 allows ______, Disabled, and those affected by wildfires and disasters, to transfer their tax bases to a new property
Senior Citizens
To qualify for the IRS 121 Exclusion a seller must live in the property _____ of the previous 5 years
3
Annual pre tax cashflow/ Cash Invested
Cash on Cash return
When doing a 1031 exchange, the property being sold must have previously been an income property and the new property must be similar. What is the term indication the similarities in property.
Like kind
80 Year old Joe purchased a home for 100K.
Joe sold the home for 500K
Joe purchased a new home closer to his grandkids for 500K
What is Joes tax basis under prop 19
100k
What you paid for the property
Basis
Gross Revenue - Operating Expenses
NOI
When the property you are 1031 exchanging into is LESS than the sale of the original home, the additional income is considered
Boot
Senior Sue purchased home #1 in 1950 for 100K
Sue sold home #1 for 500K
Sue Purchased a new home in CA for $650k
How much of Sues new home will be taxed at standard tax rates
150K
When you sell an asset for more than its basis, all the additional income is
Capital Gains
NOI/Purchase Price
CAP Rate