An Investor Who Has Owned a Property for 2 Years

question 36

Multiple Choice

An investor who has owned a property for 2 years and then sells for a gain most likely will pay:

• A) pay capital gains taxes
• B) defer the payment of taxes
• C) pay only California, not federal taxes
• D) not pay taxes as a sale for cash qualifies as a 1031 exchange

---

Definitions:

Mean

The arithmetic average of a set of values, calculated by dividing the sum of all values by the number of values.

Scores

Numerical values that represent the result of an evaluation or measurement.

Z Score

A statistical measure that describes a value's relationship to the mean of a group of values, expressed in units of standard deviation.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how much individual data points deviate from the mean.