MATH SOLVE

2 months ago

Q:
# A property sold for $149,240. The buyer paid 20% down and financed the balance with a new mortgage. How much must be paid for the documentary stamp taxes on the deed?

Accepted Solution

A:

The total amount of documentary stamp taxes will be the sum of the documentary stamp taxes for the deed plus the documentary stamp taxes for the mortgage.

The documentary stamp taxes for the deed is set to 0.70$ per 100$ (which means 0.70%) of property price rounded up to the next hundred $, therefore:

149300 × 0.70 / 100 = 1045.10$

The documentary stamp taxes are 0.35$ every 100$, which means the 0.35% of the mortgage rounded up, therefore:

the mortgage is only 80% of the property price:

149240 × 80 / 100 = 119392$

119400 × 0.35 / 100 = 417.9$

Sum up the taxes:

1045.10 + 417.9 = 1463$

The total documentary stamp taxes due are 1463$

The documentary stamp taxes for the deed is set to 0.70$ per 100$ (which means 0.70%) of property price rounded up to the next hundred $, therefore:

149300 × 0.70 / 100 = 1045.10$

The documentary stamp taxes are 0.35$ every 100$, which means the 0.35% of the mortgage rounded up, therefore:

the mortgage is only 80% of the property price:

149240 × 80 / 100 = 119392$

119400 × 0.35 / 100 = 417.9$

Sum up the taxes:

1045.10 + 417.9 = 1463$

The total documentary stamp taxes due are 1463$