Real Estate Exam Federal Law Practice Test 2026 Question Answers

1) Which of the following is exempt from the federal Fair Housing Act of 1968?

2) Court action may be taken by an individual under the Fair Housing Act:

3) Instead of selling business or investment property and paying a tax on the gain, one may prefer:

4) Where the dominant population base of an area consists of minorities:

5) Depreciation claimed for income tax purposes:

6) A homeowner, on his or her federal income tax return, may not deduct:

7) A Real Estate Investment Trust (REIT) must:

8) The report of a sale to the IRS is normally made on Form 1099 by the:

9) The federal income tax exemption on the gain from the sale of a personal residence held long enough by a married couple is up to:

10) Which amendment to the Constitution provides support by banning racial discrimination?

11) A tax deduction for business property that requires no cash outlay is:

12) Federal income tax deductions for a principal residence include:

13) No federal fair housing laws are violated if a landlord refuses to rent to:

14) Under Internal Revenue Code Section 1031, tax on the profit of an exchange is:

15) The 1968 Fair Housing Act, as amended, prohibits housing discrimination on the basis of:

16) A broker has contacted owners in a certain subdivision and advised them that several members of a particular race have bought homes in the area. The broker has offered to list properties at a reduced rate and encouraged the owners to sell quickly. This is:

17) Broker Barb is acting as a buyer’s agent for Joe. Joe asks whether any people of a certain race live in a specific neighborhood. How should Barb respond?

18) When a salesperson’s agreement with a broker is to be an independent contractor, the broker:

19) A Real Estate Investment Trust (REIT) must:

20) In a Subchapter S corporation, the corporation itself:

21) Federal income tax deductions for a principal residence include:

22) A homeowner, on their federal income tax return, may not deduct:

23) Taxable gain on the sale of commercial real estate is calculated by:

24) Ellen owns a two-family house and lives in one side. She wants to advertise the other side as nonsmoking. Can she legally do so?

25) Federal income tax rates are generally:

26) Sullivan wants to rent an apartment but is confined to a wheelchair. At Sullivan’s request, the landlord must:

27) In the purchase of a home, which is frequently tax-deductible?

28) The two most important income tax deductions for homeowners are:

29) The federal income tax exemption on the gain from the sale of a personal residence held long enough by a married couple is up to:

30) Federal income tax rates are generally:

31) Cash or other unlike property included to equalize values in a Section 1031 exchange is called:

32) A REIT is like:

33) Cash or other unlike property included to equalize values in a Section 1031 exchange is called:

34) Owners of improved rental property can generally deduct on their federal income tax returns in the year incurred:

35) The initial cost of an asset, increased by capital expenditures and reduced by depreciation expenses, from which gain or loss is measured is:

36) “Familial status” refers to:

37) If a landlord refuses to rent to a minority prospective tenant with a poor credit record:

38) The federal income tax exemption on the gain from the sale of a personal residence held long enough by a single individual is up to:

39) The initial cost of an asset, increased by capital expenditures and reduced by depreciation expenses, from which gain or loss is measured is:

40) Harold bought 20 acres for $125,000 and sold the land three years later for $230,000. On his income tax return, he reports:

41) To qualify as a Section 1031 exchange, the property must be:

42) A seller asks his broker about the race of a potential buyer. The broker:

43) A tax deduction for business property that requires no cash outlay is:

44) Broker Bob is showing houses to Joe Chen, who is of Chinese ancestry. Bob shows Joe houses in a neighborhood of predominantly Chinese-American residents because Bob thinks Joe would feel more at home there. This is:

45) The Civil Rights Act of 1968 prohibits:

46) The federal income tax exemption on the gain from the sale of a personal residence held long enough by a single individual is up to:

47) Indications of independent contractor status include:

48) The two most important income tax deductions for homeowners are:

49) Mr. and Mrs. Martin jointly bought a principal residence in 2004 for $325,000 and sold it in 2016 for $500,000. What portion of their $175,000 gain is subject to capital gains tax?

50) Double taxation is generally not avoided when using which form of ownership?