State transfer taxes

Question 1

What is the documentary stamp tax rate on deeds?

Answer 1

$0.70 per $100 (0.6 in Dade County)

Question 2

How would you calculate the documentary stamp tax?

Answer 2

purchase price / $100 = taxable units
taxable units * $0.7 = cost of stamp tax

This formula is essential for determining the amount of tax owed.

Question 3

Is the documentary stamp tax on deeds based on the purchase price or the loan?

Answer 3

on the full purchase price

The tax applies to the entire purchase price, not just the loan amount.

Question 4

What is the documentary stamp tax on a purchase price of $171,200?

Answer 4

$1,198.40

Calculation: $171,200 / 100 * 0.7.

Question 5

If the purchase price is $171,225, what is the stamp tax?

Answer 5

$1,199.10

Calculation involves rounding: $171,225 / 100 = 1,712.25 rounded up to 1,713.

Question 6

For documentary stamp tax, if the division of purchase price by 100 yields a decimal, do you round up or down?

Answer 6

always up

Question 7

What is the documentary stamp tax on (promissory) notes?

Answer 7

$0.35 per $100

Question 8

Is the documentary stamp tax on the purchase price or the loan for promissory notes?

Answer 8

just on the loan amount

The promissory note functions as an IOU for the loan, not the purchase price.

Question 9

What is the intangible tax paid on new debt?

Answer 9

$0.002 per $1

This tax is assessed on the amount of the new debt. (According to Gemini, this tax is no longer charged in Florida since 2007)

Question 10

Is the state transfer tax classified as revenue or expense?

Answer 10

an expense

It represents a cost incurred by the party responsible for payment.

Question 11

How is the state transfer tax entered in accounting for the person paying the expense?

Answer 11

debit

This reflects an increase in expenses on the financial statements.