Taxes are bad
Taxes are fun
Investments
Thinking with Math
Easy points
100
What is recapturing taxable income. (This is when you sell, and in return you make a capital gain. All previous deductions that you once used against taxes will try to be taken back, in this type of recapturing attempt.)
recaptured depreciation
100
What is the profit realized from the sale of any capital investment including real estate.
capital gain
100
What is investments or property that is held for less than 12 months. They are also taxed as marginal rates for the tax payers income.
short term capital gain
100
Sam built a house for 150,000$, he sells it for 250,000$, What is the Basis? and how much capital did he make?
Basis is cost, cost = 150,000$ capital is basis - investment=100,000$
100
what is the main home or second home called?
qualified home
200
What is the limit for a single person, realized capital gain tax lock out. Up to this amount, realized in capital gain, the capital investment can not be taxed. (for a single, people)
250,000$
200
What is a deductible allowance from net income of property used to arrive at taxable income.
tax depreciation
200
Tax rates will change in what year unless new legislation is passed?
2013, be aware.
200
john is single, sold his investment property for 740,999$ but the cost he paid for it 2 years ago was 500,000$, he made a capital gain of 240,999$, how much taxes will he have to pay?
No taxes will be taken, he is under the 250,000$ capital gain exclusion
200
Income - Expenses =?
Net income
300
What is when an investment or other type of property is sold at a loss.
capital loss
300
500,000
What is the exclusion on the capital gain of a primary residence for married home sellers may be up to.
300
What are invested funds? (one of the classifications of income)
passive activity income
300
bill made a capital gain of 450,000 he is single, so he is over the exclusion by 200,000$ so he will have to pay tax on his capital, he currently is at 15% tax bracket, what is 15% of his capital gain$?
30,000$
300
What is anther word for cost? (The _____ of a property is usually its cost.)
basis
400
what percent is the capital gains, taxed at when the tax payer's rate is above the 15 percent income bracket.
15%
400
What is a benefit of tax depreciation? A TAX _________!
deduction
400
What is an income based on a salary or wages.
active income
400
Tanya sold her investment, and made a capital gain, of 600,000$ tanya is single, how much capital gain tax does she owe. (at 15% tax rate)
52,500
400
give me all six percentages of the tax brackets, used for federal taxation
10, 15, 25, 28, 33, and 35
500
A. appraisal fees, B. notary fees, C. VA funding fees, D. other closing costs? Which of these are able to be used as a tax deduction?
None of them, closing costs are not considered interests and are NOt tax deductible
500
What is there is an increase in value due to economic other other reasons.
appreciation
500
in order to qualify for a tax deferred exchange, how many days does the exchangor have to contract for the replacement property.
60
500
nick buys an investment property, for 400,000$ and deducts 150,000$ of depreciation during the years of ownership. This brings the basis declines to 250,000$ as a adjustment cost. He sells the property for 720,000$. Of that 500,000 is capital gain. The 150,000$ depreciated will be recaptured and now taxed at 25%. 350,000$ will be taxed under a 15% capital rate. What are the total taxes from this transaction will he have to pay.
25% tax on 150,000 =37,500$ 15% tax on the capital is as followed (watch carefully) He is single, and its an investment, so.... 350,000$ (capital gain after depreciation taken off) - single 350,000-250,000=100,000$ X 15% =15,000$ Total=52,500
500
What is, when a tax payer has signed a legal document such as a mortgage or a land contract.
secured debt
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