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Tax Consequences & Deductions in Real Estate Transactions

Instructions:

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?

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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?

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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
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