Depreciation on rental property for federal tax purposes is calculated over:
Correct Answer
B) 27.5 years for residential, 39 years for commercial
The IRS requires residential rental property to be depreciated over 27.5 years using straight-line depreciation. Commercial (non-residential) property is depreciated over 39 years. Only the building, not the land, can be depreciated.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Transfer Of Property Question
Background Knowledge for Transfer Of Property
Real World Application in Transfer Of Property
Common Mistakes to Avoid on Transfer Of Property Questions
Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A title search is an examination of public records to determine the history of ownership, liens, encumbrances, and other interests affecting a property. It verifies that the seller has the legal right to transfer the property.
A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.
More Transfer Of Property Questions
Taylor Torres wants to give the buyer the most complete deed protection, promising to defend title against lawful claims arising at any time in the chain of title. Which deed should be used?
Closing is always the _____ step in real estate transactions.
In a 1031 exchange, the replacement property must be identified within:
A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
In a jurisdiction where a later purchaser must both lack notice and record before the earlier claimant records, what kind of recording act applies?
- → A title company examines the public records and finds that all deeds in the property's history are properly recorded and connect in an unbroken sequence. This unbroken sequence of ownership is called the
- → In a covered purchase transaction, the borrower receives a final form showing the loan terms, cash to close, and settlement charges shortly before consummation. What form is this?
- → Under TRID rules, the lender must deliver the Closing Disclosure to the borrower at least how many business days before loan consummation?
- → On the seller's settlement statement, the purchase price of $400,000 appears as what?
- → At closing, the purchase price of $350,000 appears on the buyer's side of the settlement statement. Is this amount a debit or a credit to the buyer?
- → Along with the signed offer, Quinn Brooks delivers a check to demonstrate serious intent to complete the transaction if the offer is accepted. What is this deposit called?
- → Monthly rent of $2,500 has been collected in advance for a 30-day month. Closing occurs on the 14th day of the month, and the seller owns the day of closing. What rent amount is credited to the seller?
- → In an escrow closing, the escrow agent discovers that the seller has not yet provided the signed deed. What should the escrow agent do?
- → A buyer purchases a property for $420,000 with a loan amount of $378,000. Buyer closing costs are $7,000, and the earnest money deposit already paid is $4,000. Ignoring prorations, how much additional cash must the buyer bring to closing?
- → All of the following are closing or settlement concepts EXCEPT
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Why Real Estate Ownership Review Gets Easier After You Sort Rights by Possession, Use, and Transfer
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for real estate ownership...
Why Property Rights Questions Get Easier After You Sort Possession, Use, and Transfer Separately
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for property rights...
How to Study Transfer Questions Without Mixing Voluntary Transfer, Involuntary Transfer, and Recording Effects
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for study transfer questions...