Florida Real Estate Broker ExaminationReal Estate CalculationsEasy
A buyer is obtaining a new mortgage for $400,000. In Florida, the documentary stamp tax on promissory notes is $0.002 per dollar of the debt. What is the amount of the documentary stamp tax on this promissory note?
- A$400
- B$800
- C$1,000
- D$1,200
Show answer & explanationAnswer & explanation
Correct answer: B. $800
The documentary stamp tax on a promissory note is calculated by multiplying the loan amount by the tax rate ($0.002 per dollar).
Why the other options are wrong
- A. This might result from using an incorrect tax rate or a calculation error.
- C. This could be a result of applying an incorrect tax rate or other miscalculations.
- D. This is likely a result of applying an incorrect tax rate or a calculation error.
Doc Stamp Tax on Note (FL)
A Florida state tax levied on promissory notes (mortgage notes) as a percentage of the debt amount, paid at the time of recording.
- Applied to new mortgages.
- Rate is $0.002 per dollar.
- Paid at closing.
Memory trick: Loan times rate equals the note tax.