In February of the Current Year (Assume a Non-Leap Year),Ken

question 41

Multiple Choice

In February of the current year (assume a non-leap year) ,Ken and Kelsey received their property tax statement for last calendar-year taxes of $1,600,which they paid to the taxing authority on March 1 of the current year.They had purchased their home on May 1 last year.What amount of property tax on this statement may they claim as an itemized deduction this year?

• A)$0
• B)$800
• C)$1,074
• D)$1,600

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Definitions:

Special Warranty Deed

A type of deed in which the seller guarantees the title only against defects arising during their ownership and not against defects existing before that time.

Warrants

Warrants are financial instruments issued by companies that give the holder the right to purchase company stock at a specific price before a certain date.

Title Defects

Issues with a property's title that could limit the owner’s ability to possess, use, or transfer the property, such as liens or encroachments.

Encumbrances

Claims, liens, charges, or restrictions on property that may affect its value, use, or transferability.