Answered

A seller has agreed to sell his home for $215,300. The buyer will make a $27,000 down payment and assume an $85,000 mortgage. What is the transfer tax if the state tax rate is $0.12 for each $100 paid in cash at the time of the transfer?

Answer :

Answer:

transfer tax  = $156.36

Explanation:

given data

sell home = $215,300

down payment = $27,000

mortgage = $85,000

state tax rate =  $0.12 for each $100 paid

solution

we get here amount that subject to transfer tax is

amount subject to transfer tax = $215,300 - $85,000

amount subject to transfer tax =  $130,300

and

now we get taxable parts

taxable parts  = [tex]\frac{sale\ price}{taxable\ part}[/tex]

taxable parts  = [tex]\frac{130300}{100}[/tex]

taxable parts  = $1,303  

so  transfer tax is

transfer tax  = $1,303  × $0.12

transfer tax  = $156.36

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