Robert owns two properties in Greenville County, South Carolina: a single-family home where he lives full-time, and a duplex he rents to tenants. Robert has applied for and received the 4% assessment ratio on his home. Which statement correctly describes the tax treatment of both properties?
Correct Answer
B) The home is assessed at 4% and the duplex is assessed at 6% of fair market value.
Under South Carolina law, the 4% preferential assessment ratio applies only to a taxpayer's primary residence. Robert's owner-occupied home correctly receives the 4% rate. The duplex, which is an income-producing rental property, does not qualify as a primary residence and is therefore assessed at the standard 6% rate applicable to investment and commercial properties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
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The rapid growth of the 'Silicon Slopes' tech corridor in Utah has most directly affected real estate in which area?
- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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