Real Estate Math
A Wisconsin seller paid $280,000 for their home five years ago. They made $35,000 in improvements. If they sell for $395,000, what is their capital gain (before exclusion)?
A$80,000✓ Correct
B$115,000
C$120,000
D$150,000
Explanation
Adjusted basis = $280,000 + $35,000 = $315,000. Capital gain = $395,000 - $315,000 = $80,000. Using the values given ($280,000, $35,000), apply the appropriate formula.. The correct answer is $80,000.. This is a common calculation on the Wisconsin real estate exam.
Related Wisconsin Real Estate Math Questions
- A Wisconsin property is listed for $389,900 and sells for $377,000. What percentage of list price did it sell for (rounded to one decimal)?
- A Wisconsin broker earns a 6% commission on a $425,000 sale. If the broker keeps 40% and pays the listing agent 35% of the broker's share, how much does the listing agent earn?
- A Wisconsin property is depreciated over 27.5 years (residential). It was purchased for $330,000, with the land valued at $30,000. What is the annual depreciation deduction?
- A Wisconsin property has a market value of $420,000. The assessment ratio is 85%. The mill rate is 24 mills. What is the annual property tax?
- A Wisconsin listing agent negotiates a 6% commission on a $385,000 sale. The cooperating broker receives 50% of the total commission. The cooperating broker's agent earns 60% of the cooperating broker's share. How much does the cooperating agent earn?
- A Wisconsin investor pays $560,000 for an apartment building with an annual NOI of $44,800. What is the cap rate?
- A Wisconsin property has an annual NOI of $48,000 and is valued at $600,000. What is the overall capitalization rate?
- A Wisconsin property owner bought land for $45,000 and later sold it for $72,000. What was the percentage gain?
Practice More Wisconsin Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Wisconsin Quiz →