An Investor Who Has Owned a Property for Two Years

question 11

Multiple Choice

An investor who has owned a property for two 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

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Definitions:

Brothy

Pertaining to a clear, soup-like consistency with a thin, liquid texture.

Oval Window

A membrane-covered opening that leads from the middle ear to the cochlea of the inner ear and is involved in the process of hearing.

Eardrum

A thin membrane that separates the external ear from the middle ear, vibrating in response to sound waves and aiding in the process of hearing.

Sensation

How our sensory receptors and nervous system perceive and interpret energy from stimuli in the environment.