What was the total amount of state taxes paid on the sale of a principal residence with a sales price of $60,000 and a mortgage of $32,500?

What was the total amount of state taxes paid on the sale of a principal residence with a sales price of $60,000 and a mortgage of $32,500?

• A. documentary stamps on the deed of $420; documentary stamps on the mortgage note of $210; intangible tax on the mortgage of $65
• B. documentary stamps on the deed of $420; documentary stamps on the mortgage note of $65; intangible tax on the mortgage of $113.75
• C. documentary stamps on the deed of $420; documentary stamps on the mortgage note of $113.75; intangible tax on the mortgage of $65
• D. documentary stamps on the deed of $380; documentary stamps on the mortgage note of $227.50; intangible tax on the mortgage of $65

Answer: (C)

To determine the total state taxes paid on the sale of a principal residence, we need to break down the components: documentary stamps on the deed, documentary stamps on the mortgage note, and the intangible tax on the mortgage. For a sales price of $60,000, the documentary stamps on the deed are calculated based on the sales price. In Florida, documentary stamp taxes on deeds are generally calculated at a rate of $0.70 per $100. Therefore, for a sales price of $60,000, the calculation would be: - $60,000 ÷ 100 = 600 - $600 x $0.70 = $420 This leads to the correct amount of documentary stamps on the deed being $420. Next, for the mortgage note, the stamps are calculated based on the mortgage amount of $32,500. The rate for documentary stamps on the mortgage is also $0.35 per $100. Thus, the calculation would be: - $32,500 ÷ 100 = 325 - $325 x $0.35 = $113.75 This means the documentary stamps on the mortgage note correctly amount to $113.75. Finally, the intangible tax on the mortgage is

To determine the total state taxes paid on the sale of a principal residence, we need to break down the components: documentary stamps on the deed, documentary stamps on the mortgage note, and the intangible tax on the mortgage.

For a sales price of $60,000, the documentary stamps on the deed are calculated based on the sales price. In Florida, documentary stamp taxes on deeds are generally calculated at a rate of $0.70 per $100. Therefore, for a sales price of $60,000, the calculation would be:

• $60,000 ÷ 100 = 600

• $600 x $0.70 = $420

This leads to the correct amount of documentary stamps on the deed being $420.

Next, for the mortgage note, the stamps are calculated based on the mortgage amount of $32,500. The rate for documentary stamps on the mortgage is also $0.35 per $100. Thus, the calculation would be:

• $32,500 ÷ 100 = 325

• $325 x $0.35 = $113.75

This means the documentary stamps on the mortgage note correctly amount to $113.75.

Finally, the intangible tax on the mortgage is