The sales price is $800,000. The buyer is to put $200,000 down and to obtain a new first loan for $500,000, and the seller is to carry back a second loan for $100,000. The documentary transfer tax is:

Question

Quizplus · Accepted Answer

The documentary transfer tax is calculated based on the sales price minus any assumed loans. Here, the tax is based on the full sales price of $800,000. The tax rate is typically $1.10 per $1,000 of the sales price, so $800,000 / $1,000 = 800, and 800 x $1.10 = $880.

The Sales Price Is $800,000