A townhouse is purchased for $475,000. If the transfer tax is $2.00 on the first $1,000. and $0.10 for each additional $100., ho

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1 year ago

5

w much are the transfer taxes?

1 answer:

masya89 [10] · Answer 1 · 2024-06-05T13:56:35+03:00

Based on the information given the amount of the transfer taxes is $476.

Using this formula

Total transfer tax=[(Purchased price+ First transfer tax)×(Additional tax)]+Transfer tax

Let plug in the formula

Total transfer tax=[($475,000-$1,000)×($0.10/$100)]+$2

Total transfer tax = ([$474,000 x .001] + $2)

Total transfer tax=$474+$2

Total transfer tax=$476

Inconclusion the amount of the transfer taxes is $476.