Tax Consequences & Deductions in Real Estate Transactions


Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What money is capital gains tax paid on?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. What is the minimum real estate ownership period to qualify for long term capital gains tax rates?

2. Which of the following describes short term capital gains tax rates?

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

Determine how much you understand about real estate transaction taxes and deductions. You'll be tested on tax rates and the money involved.

Quiz & Worksheet Goals

Use the worksheet and quiz to:

  • Understand how capital gains tax is paid
  • Determine the minimum ownership period of real estate to qualify for long term capital gains tax rates
  • Recognize an appropriate description for short term capital gains tax rates
  • Identify the amount of money a married couple can jointly exclude when they file capital gains
  • Name the withholding rate for sellers of real estate subject to FIRPTA

Skills Practiced

Practice the following study skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on real estate transaction taxes and deductions
  • Making connections - use understanding of the concept of capital gains and how it is connected to the money it is paid on
  • Critical thinking - apply relevant concepts to examine information about short term capital gains tax rates in a different light
  • Information recall - access the knowledge you've gained regarding the withholding rate for real estate sellers subject to FIRPTA

Additional Learning

Find out more about the subject with the lesson entitled Tax Consequences & Deductions in Real Estate Transactions. The lesson will cover the following study objectives:

  • Define capital gains
  • Understand short term capital gains
  • Explain a long term capital gain
  • Assess what makes for a deductible expense
  • Analyze capital gains exclusions
  • Identify FIRPTA