IAAO Assessment of Personal Property (500) Practice Test

The correct response identifies the building's foundation as not considered personal property, which is accurate because personal property refers to movable assets that are not permanently attached to or associated with the real estate. Personal property can include items like furniture, decorative items, and equipment—such as a computer room floor designed for functionality or aesthetics—but these items are movable.

In contrast, the building's foundation is a permanent fixture that is an integral part of the real estate itself. It supports the structure and is intended to remain in place for the life of the building. Thus, it is classified as real property rather than personal property.

The distinction lies in the nature of the property: real property encompasses land and anything permanently attached to it, while personal property denotes movable items that are not permanently affixed.