Sarah is selling her homesteaded property to her daughter for $1 and natural love and affection. The property has a fair market value of $400,000. What documentary stamp tax applies to this transaction?
Correct Answer
B) $2,800 based on the fair market value
Correct: Florida documentary stamp tax is based on the fair market value when the stated consideration is nominal or inadequate, so $400,000 ÷ $100 × $0.70 = $2,800. Why not A: Nominal consideration of $1 triggers the fair market value rule. Why not C: Family transfers are not automatically exempt from documentary stamp tax. Why not D: There is no half-value calculation for family transfers in Florida documentary stamp tax law.
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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?
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A buyer purchases a duplex for $275,000 and obtains a purchase money mortgage of $220,000 plus a separate home equity line of credit for $30,000. What is the total documentary stamp tax due on all taxable instruments?