Sam bought a townhouse in 2005 with 30-year fixed mortgage. He married Ada in2008. The next year, Ada inherited a small condo form her father. They sold the condoimmediately and used proceeds from the condo as down payment to buy a $600,000SFH in Northridge. This SFH became their primary home. Sam rented out thetownhouse for $2,000/month and put rental income in their joint account. Which ofthe following statement regarding ownership is correct?Townhouse is Sam's separate property; condo is Ada's separate property; rental incomebecomes community propertyO Townhouse and rental income are Sam's separate property; condo becomes communitypropertyTownhouse and rental income are Sam's separate property; condo is Ada's separate propertyO Townhouse is Sam's separate property; condo and rental income become communityproperty.

Community property consists of assets that come into the marriage as a gift or inheritance. These…

Answered: O Townhouse and rental income are Sam's…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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which of the following persons must have an active North Carolina real estate license? a person who manages the petals of their parents beach cottage without receiving any compensation for their services a retiree who refers prospective home buyer to the home sales center at their retirement community in return fro fee rounds of golf anyone who occasionally buys. renovates, and sells historic houses at a significant profit the executor of an estate who handles the sale of the deceased persons real property and receives an executors fee.
A couple applied for a loan to finance the purchase of a new home. What federal act was created to ensure that they have knowledge of all closing costs? a. fair credit reporting act b. equal credit opportunity act c. uniform settlement act d. real estate settlement procedures act
Danny and Julie, a married couple, decided to sell their community property home in a community property state, and reinvest their sale proceeds in a new home in a common law state with only Julie's name on the title. Which statement below is correct? A) The new home will be considered community property, but only if Julie places Danny’s name on the title as tenancy by the entirety. B) The new home will be considered the separate property of Julie. C) The new home will be considered community property. D) Danny would have rights to only the sale proceeds from their prior home.
! Required Information The following information applies to the questions displayed below.] Lauren owns a condominium. In each of the following alternative situations, determine whether the condominium should be treated as a residence or a nonresidence for tax purposes. a. Lauren lives in the condo for 21 days and rents it out for 16 days. O Residence O Nonresidence
All of the following are covered under "Coverage D: Loss of Use" of the Homeowners 3 policy EXCEPT a. Additional living expenses if the home cannot be used because of loss from an insured peril. O b. The cost to repair or replace property destroyed by a covered peril. c. Loss of rent if part of the premises rented to a boarder cannot be used. O d. Additional living expenses if the home cannot be used because of the order of civil authority.
Please answer these questions, give me the right answers ( choices) please
In the context of estate planning, it is correct to say that: * Estate planning is a definite plan for the administration and disposition of one's property during one's lifetime and at one's death. State laws always determine the distribution of our estate after our death. Once we cannot predict the future, we should plan our estate only a little before our death. The executor is a person who assumes responsibility for providing childrem with personal care and managing the deceased's estate for them.
Subject : Accounting
All of the following are true of the HO-3 Special Form, EXCEPT: The HO-3 meets the property and liability coverage needs of most families. The HO-3 is designed for owners who occupy their dwelling or choose to rent it. The HO-3 can be modified for special needs through available endorsements. The HO-3 is typically used as a basis for understanding other HO coverage forms.
Your client, who does not have a will and does not plan to write one, recently purchased a tract of farmland to include in the family farming operation. He wants the entire tract to pass upon his death to his son, who will continue the farming operation. He wants the remainder of his property to pass to his wife. You should advise him that, to accomplish his objectives, the most appropriate form of titling to use for the farmland tract is A) joint tenancy with right of survivorship with his son. B) tenancy in common with his son and wife. C) tenancy in common with his son. D) joint tenancy with right of survivorship with his son and wife.
Question #5 of 85 Your client wants to purchase a residence for his aging parents, while minimizing the burden of ownership of the property for them and maximizing their enjoyment of it. Which one of the following states an advantage of titling the property in your client's name as sole owner rather than in joint tenancy with right of survivorship with his parents? A) He will avoid gift tax liability by titling the property this way. B) The property will pass to his parents outside of probate. C) The property will receive a step-up in basis when his parents die. D) His parents will have a life estate in the property if he predeceases them.
When appreciated property is transferred, the gift tax is based on replacement cost of the property fair market value of the property on the date of the gift the donor's original cost of the property the donor's original cost increased by half of the appreciation

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O Townhouse and rental income are Sam's separate property; condo becomes community property