Superior School of Real Estate
Which of the following is a tax-deductible expense resulting from home
ownership?
A. operating expenses
B. depreciation
C. mortgage interest
D. energy usage - CORRECT ANSWER-C
Discount points paid by a borrower to obtain a conventional mortgage loan to
purchase a principal residence:
A. do not increase the yield on the mortgage
B. are not deductible by the borrower as interest
C. are not deductible at all
D. are deductible in the year paid - CORRECT ANSWER-D
With regard to a real estate commission paid by a seller, which of the following is
NOT correct?
A. the commission can be deducted from the selling price as a selling expense in
calculating the amount realized in the sale of a principal residence
B. the commission paid can be deducted as a moving expense by the seller when
itemizing tax-deductible expenses
C. the commission is not deductible under any circumstance
D. the commission deducted as a moving expense is subject to a cap - CORRECT
ANSWER-C
All of the following are true of the capital gain exemption EXCEPT:
A. ownership and use period must be simultaneous
B. a partial exclusion can sometimes be used if sale of residence results from a
job transfer or health reasons
C. a married couple can use the $500,000 joint exemption if only one of them
owns the residence and both meet the occupancy requirement
D. taxpayers who currently maintain an office in their home must pay capital
gains tax on that part of the gain attributable to the office. - CORRECT ANSWER-
A
The sales price minus allowable expenses of sale is known as the:
A. adjusted basis
Which of the following is a tax-deductible expense resulting from home
ownership?
A. operating expenses
B. depreciation
C. mortgage interest
D. energy usage - CORRECT ANSWER-C
Discount points paid by a borrower to obtain a conventional mortgage loan to
purchase a principal residence:
A. do not increase the yield on the mortgage
B. are not deductible by the borrower as interest
C. are not deductible at all
D. are deductible in the year paid - CORRECT ANSWER-D
With regard to a real estate commission paid by a seller, which of the following is
NOT correct?
A. the commission can be deducted from the selling price as a selling expense in
calculating the amount realized in the sale of a principal residence
B. the commission paid can be deducted as a moving expense by the seller when
itemizing tax-deductible expenses
C. the commission is not deductible under any circumstance
D. the commission deducted as a moving expense is subject to a cap - CORRECT
ANSWER-C
All of the following are true of the capital gain exemption EXCEPT:
A. ownership and use period must be simultaneous
B. a partial exclusion can sometimes be used if sale of residence results from a
job transfer or health reasons
C. a married couple can use the $500,000 joint exemption if only one of them
owns the residence and both meet the occupancy requirement
D. taxpayers who currently maintain an office in their home must pay capital
gains tax on that part of the gain attributable to the office. - CORRECT ANSWER-
A
The sales price minus allowable expenses of sale is known as the:
A. adjusted basis
