Florida Real Estate Sales Associate Examination Content OutlineReal Estate Closings and Post-ClosingMedium
A real estate transaction involves a purchase price of $350,000. The documentary stamp tax on deeds in Florida is $0.70 per $100 (or fraction thereof) of the purchase price. What is the amount of documentary stamp tax on the deed?
- A$2,450.70
- B$2,457.70
- C$2,450.00
- D$2,457.00
Show answer & explanationAnswer & explanation
Correct answer: C. $2,450.00
The documentary stamp tax on deeds is calculated at $0.70 per $100 of the purchase price. For a $350,000 purchase price, first divide by $100: $350,000 / $100 = 3,500 units. Then multiply by the tax rate: 3,500 * $0.70 = $2,450.00.
Why the other options are wrong
- A. This incorrectly adds $0.70 for a fraction, which isn't needed here as it's an even multiple of $100.
- B. This is an incorrect calculation and misapplication of the 'fraction thereof' rule.
- D. This shows a miscalculation in either the division or multiplication.
Florida Doc Stamp Tax on Deeds
In Florida, the documentary stamp tax on deeds is a transfer tax levied on the value of real property being conveyed, typically $0.70 per $100 (or fraction thereof) of the consideration.
- Paid by the seller.
- Calculated on the full purchase price.
- Rate is $0.70 per $100 (except Miami-Dade County).
Memory trick: Doc stamps for deeds: Dollars per hundred, seller's burden.