Real Estate - The CE Shop Questions and Answers Already Passed

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Real Estate - The CE Shop Questions and Answers Already Passed 1031 tax-deferred exchange ✔✔"Section 1031 of the Internal Revenue Code allows the owner of real property to sell that property an... d then reinvest the proceeds in a "like-kind" property and defer paying any capital gains taxes. Ex. Real estate investors can take advantage of the 1031 tax-deferred exchange to defer capital gains taxes when selling a property provided the money is rolled into another """"like"""" purchase " abutting ✔✔"Land sharing a common border Ex. Many neighbors find that fences make abutting properties more tolerable. " acceleration clause ✔✔"Allows a lender to demand immediate and full payment of all debt owed if a buyer defaults Ex. When Wendy stopped making home loan payments, her lender told her she must pay off her entire balance or risk foreclosure. " accession ✔✔"The addition of value to property through labor or the addition of new materials, including an increase in land through natural processes Ex. Jonathan's property borders a bay. The bay receded, and Jonathan gained an extra 10 feet of property to his land through accession. " accessory use ✔✔"An incidental or subordinate use to the primary use of the property Ex. Andy's military bunker in his back yard constituted an accessory use of the property. " accounting ✔✔"One of the fiduciary duties, accounting means an a [Show More]

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