A commercial property in Orlando sells for $1,250,000. The buyer assumes an existing mortgage of $400,000 and obtains a new second mortgage of $300,000. What is the documentary stamp tax due on the deed?
Correct Answer
A) $8,750.00
Correct: Documentary stamp tax on the deed is calculated on the full sale price: $1,250,000 ÷ $100 = 12,500 taxable increments × $0.70 = $8,750.00. Why not B: This incorrectly calculates tax only on the portion above the assumed mortgage. Why not C: This only calculates tax on the assumed mortgage amount. Why not D: This incorrectly adds mortgage taxes to the deed tax calculation.
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