Real Estate Ch 19-20

Unlike salespersons who are employees, independent contractors

Take self-employment income tax deduction

A broker may require a salesperson who is an independent contractor to

Comply with article 12-A of the real estate law

If a salesperson is an independent contractor, he is entitled to

Supervision and Guidance

A broker is exited to hear that a super salesperson is moving to town. In attempting to recruit the salesperson to work for him as an independent contractor, what can the broker legally say

“My Salesperson have earn above market for six months”

An independent contractor is generally

Paid commissions on sales

Under New York State Law, how often does the contract need to be renewed between the broker and the independent contractor salesperson

Every 15 months

An employee is legally required to receive

unemployment insurance

Whether a licensee is an independent contractor or an employee, the broker must

Obtain the individual social security number

The salesperson who joins a real estate company as an independent contractor will probably have to pay for his own

Hospitalization insurance

The broker whose associates are independent contractors may still insist that they

sign a written contact For their services

A primary resident is the location where, prior to the sale, the taxpayer has resided for at least

Two of the five years

A seller sold his old home earlier this year and took his tax exclusion. How long does he have to wait before the sales of his current home would qualify for an exclusion

Two Years

A woman would like to purchase a condo, but she does not have the down payment. How much money can she withdraw from her IRA without incurring the additional 10% early withdrawal penalty?

$10,000

A buyer purchased a condo for $250,000. Which item will she be able to deduct when preparing her income taxes for the year in which she purchased the condo?

Interest and points paid during the year

A man owns a vacation home on a lake. How many days can he lease this home to friends before the IRS views it as a income producing property?

14 days

The amount of money that the tax reform act of 2018 allows taxpayer to exclude from the Games realize on the sale of a primary residence is based on whoever the taxpayer files is single or as married file jointly. This rule is commonly preferred as.

The $200,000/$500,000 rule

Which form of income on an investment properties considered passive income?

Rents paid by commercial tenants

Which cost to a property owner is considered a capital improvement?

Addition of an attach garage

Which feature of the properties example of a functional Obsolescence?

In adequate electric currents to run an air conditioner

The three primary events in an investment property ownership are acquisition holding period and

Reversion

What is the cost recovery period for commercial investment property?

39 years

Which phase is used when describing the property that is exchanged in a 1031 exchange?

Like kind

A family is paying three points on a $350,000 mortgage loan. What is their dollar cost for this charge?

$10,500

Long-term gains are gains that result from the sale in which the property was held for

One year or more

The gain or loss of an owner occupant resident property is the difference between the purchase price

Plus, capital improvements, and a sale price minus the cost of sales