Corporate Relocation Professional
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Absorption Rate Calculation - CORRECT ANSWERS✅✅# of active listings / 6 mo avg
sales per month = months to sell all active listings
Buyer Value Option - CORRECT ANSWERS✅✅No appraisal first, price set by buyer on
open market. ER then makes offer to EE and completes sale with outside buyer
Rev. Ruling 82-204 - CORRECT ANSWERS✅✅Homes are capital assets in the hands of
the ER
Sarbanes-Oxley Act (SOX) - 2002 - CORRECT ANSWERS✅✅No loans to executives
Amdahl Case 1997 - CORRECT ANSWERS✅✅ER can take ordinary business deductions
b/c EE remained owner of home
RESPA (Real Estate Settlement Procedures Act) - CORRECT ANSWERS✅✅regulates and
standardizes real estate settlement practices when federally related; prohibits kickbacks;
lender must give loan applicants "Settlement Costs and You" booklet within 3 business days
CFPB (Consumer Financial Protection Bureau) - CORRECT ANSWERS✅✅Regulatory
agency charged with overseeing financial products and services offered to consumers
CFPB changes after 2015 - CORRECT ANSWERS✅✅GFE is now the LE, CD 3 days prior
to closing
Gross Up Calculation - CORRECT ANSWERS✅✅Combined tax rates divided by 1 minus
tax rates
Radon measurements for real estate transactions: - CORRECT ANSWERS✅✅Measured in
pCi/L = picoCuries per liter
, EPA safe measurement of radon - CORRECT ANSWERS✅✅<4.0pCi/L
Amended Value Option - CORRECT ANSWERS✅✅ER offers an appraised value for
home, home offered on open market, ER amends offer based on outside buyer offer then ER
sells to outside buyer
TCJA - 2017 length of time of effect on moving expenses - CORRECT ANSWERS✅✅Jan
1, 2018 - 2025
Details for moving expenses not being income prior to TCJA - CORRECT
ANSWERS✅✅50 mile rule and 39 week time test
Capital losses may be _______. - CORRECT ANSWERS✅✅carried back 3 years or carried
forward up to 5 years
Capital losses can only be offset by: - CORRECT ANSWERS✅✅Capital gains
Capital Gain Exclusion - CORRECT ANSWERS✅✅$250k single, $500k MJ, must be
primary residence 2 of last 5 years, 2 of last 15 for active military
Capital gain exclusion can be prorated? - CORRECT ANSWERS✅✅True
Direct Reimbursement Home Sale Plan - CORRECT ANSWERS✅✅EE sells home, gets
reimbursed some or all, considered taxable wages, so gross up may be used
AVS - Appraised Value Sale or GBO - Guaranteed Buyout - CORRECT
ANSWERS✅✅Value determined by appraisal, EE sells to RMC or ER, no cc charges to EE,
RMC or ER sells to outside buyer, costs not considered taxable income
Rev ruling 72-339 - CORRECT ANSWERS✅✅EE doesn't pay or receive reimbursement
for commissions
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Absorption Rate Calculation - CORRECT ANSWERS✅✅# of active listings / 6 mo avg
sales per month = months to sell all active listings
Buyer Value Option - CORRECT ANSWERS✅✅No appraisal first, price set by buyer on
open market. ER then makes offer to EE and completes sale with outside buyer
Rev. Ruling 82-204 - CORRECT ANSWERS✅✅Homes are capital assets in the hands of
the ER
Sarbanes-Oxley Act (SOX) - 2002 - CORRECT ANSWERS✅✅No loans to executives
Amdahl Case 1997 - CORRECT ANSWERS✅✅ER can take ordinary business deductions
b/c EE remained owner of home
RESPA (Real Estate Settlement Procedures Act) - CORRECT ANSWERS✅✅regulates and
standardizes real estate settlement practices when federally related; prohibits kickbacks;
lender must give loan applicants "Settlement Costs and You" booklet within 3 business days
CFPB (Consumer Financial Protection Bureau) - CORRECT ANSWERS✅✅Regulatory
agency charged with overseeing financial products and services offered to consumers
CFPB changes after 2015 - CORRECT ANSWERS✅✅GFE is now the LE, CD 3 days prior
to closing
Gross Up Calculation - CORRECT ANSWERS✅✅Combined tax rates divided by 1 minus
tax rates
Radon measurements for real estate transactions: - CORRECT ANSWERS✅✅Measured in
pCi/L = picoCuries per liter
, EPA safe measurement of radon - CORRECT ANSWERS✅✅<4.0pCi/L
Amended Value Option - CORRECT ANSWERS✅✅ER offers an appraised value for
home, home offered on open market, ER amends offer based on outside buyer offer then ER
sells to outside buyer
TCJA - 2017 length of time of effect on moving expenses - CORRECT ANSWERS✅✅Jan
1, 2018 - 2025
Details for moving expenses not being income prior to TCJA - CORRECT
ANSWERS✅✅50 mile rule and 39 week time test
Capital losses may be _______. - CORRECT ANSWERS✅✅carried back 3 years or carried
forward up to 5 years
Capital losses can only be offset by: - CORRECT ANSWERS✅✅Capital gains
Capital Gain Exclusion - CORRECT ANSWERS✅✅$250k single, $500k MJ, must be
primary residence 2 of last 5 years, 2 of last 15 for active military
Capital gain exclusion can be prorated? - CORRECT ANSWERS✅✅True
Direct Reimbursement Home Sale Plan - CORRECT ANSWERS✅✅EE sells home, gets
reimbursed some or all, considered taxable wages, so gross up may be used
AVS - Appraised Value Sale or GBO - Guaranteed Buyout - CORRECT
ANSWERS✅✅Value determined by appraisal, EE sells to RMC or ER, no cc charges to EE,
RMC or ER sells to outside buyer, costs not considered taxable income
Rev ruling 72-339 - CORRECT ANSWERS✅✅EE doesn't pay or receive reimbursement
for commissions
