NYREI Study Guide with complete solutions (Graded A)

NYREI Study Guide with complete solutions (Graded A) Article 12A, Licensee - CORRECT ️️ -Real Estate License Law -Licensee is a broker or salesperson who holds a NY state real estate license -Can't work in real estate unless the licensee has a license broker to supervise -If a salesperson or broker's license is revoked, the licensee must wait 1 year to apply to get their license back Licensee - CORRECT ️️ is a broker or salesperson who holds a NY state real estate license Capital Gains Tax Exemption - CORRECT ️️ Capital gains are profit from a sale, which are taxed -To stop people from getting hurt by extremely high tax, the federal government made the Taxpayer Relief Act, a law that says $250,000 of profit is tax-free (tax- exempt) for a single person and $500,000 for a married couple -Math example: if a couple bought their home for $50,000 and sells it for $400,000, the profit (capital gains) is $350,000 and they won't pay any capital gain tax. $400,000 sell price - $50,000 buy price = $350,000 gain $350,000 gain - $500,000 exemption = $0 capital gains tax -switch it up, if they bought the house for $50,000 but instead sell for $650,000 so profit is $600,000. When they subtract the $600,000 exemption, they have $100,000, which will be taxed