Test Test.docx

Question A married couple bought a home ten years ago for $400,000. Their neighborhood has rapidly grown in popularity, and they were able to sell their home this year for $950,000. How much of that money will they be required to pay capital gains tax on? Answer A 50000 Answer B 550000 Answer C 3000...

Question A married couple bought a home ten years ago for $400,000. Their neighborhood has rapidly grown in popularity, and they were able to sell their home this year for $950,000. How much of that money will they be required to pay capital gains tax on? Answer A 50000 Answer B 550000 Answer C 300000 Answer D 950000 Correct Answer A Answer info A married couple gets a $500,000 capital gains tax exemption. $950,000 - $400,000 = $550,000 in gains. $50,000 of that is over the amount of their $500,000 exemption, and will eligible to be taxed. Question What type of listing provides a commission to the broker ONLY if their activities bring about a sale? Answer A open Answer B exclusive right-to-sell Answer C exclusive agency Answer D net Correct Answer A Answer info An open listing provides a commission to the broker only if their activities bring about a sale. Question Who provides flood insurance to homeowners? Answer A the National Flood Insurance Program (NFIP) Answer B various privately owned insurance companies Answer C state-owned flood insurance companies Answer D the Federal Emergency Management Agency (FEMA) Correct Answer A Answer info Flood insurance can be purchased only from the National Flood Insurance Program (NFIP).