RE-121 Chapter 13 Crossword Puzzle.pdf

RE-121 Chapter Thirteen Crossword Puzzle Income Taxation and Real Estate 1 2 3 4 5 6 7 8 9 10 11 ACROSS 1 A tax ______ is an amount of money that can be offset against a tax liability. 4 ______ property. Property held primarily for sale to customers. 6 Tax-free ________. When like-kind property is e...

RE-121 Chapter Thirteen Crossword Puzzle Income Taxation and Real Estate 1 2 3 4 5 6 7 8 9 10 11 ACROSS 1 A tax ______ is an amount of money that can be offset against a tax liability. 4 ______ property. Property held primarily for sale to customers. 6 Tax-free ________. When like-kind property is exchanged, allowing taxation of the gain to be deferred. Also called a Section 1031 exchange. 9 Initial _____ (acquisition cost). 10 ________ tax rate refers to the rate that will apply to the last dollar that a taxpayer earns. 11 A compulsory contribution to state revenue, levied by the government on workers' income and business profits, 12 A capital ____ refers to profit that results from a sale of a capital asset, such as stock, bond or real estate, where the sale price exceeds the purchase price. 12 DOWN 1 A tax ____ is a federal government document that details the rules individuals and businesses must follow in paying taxes to the government. 2 An expense that can be used to reduce taxable income. 3 A _____ or business generally includes any activity carried on for the production of income from selling goods or performing services. 5 Any economic benefit realized by a taxpayer that isn't excluded from income by the tax code. 7 _______ expenditures. Those made to improve the property, such as money you spend on adding a new room. 8 A principal residence (also called a ____ home) is the home the taxpayer owns and occupies as her primary dwelling. 9 Something given or received in a tax-free exchange that isn't like-kind property, such as cash. WORD BANK: Basis, boot, capital, code, credit, dealer, deduction, exchange, gain, income, main, marginal, tax, trade.