A real estate investor is doing a 1031 exchange, trading a rental property worth $500,000 for another rental property worth $650,000, and paying $150,000 cash as boot. What documentary stamp tax is due on the deed for the property being acquired?
Correct Answer
C) $4,550 on the full value of the acquired property
Correct: Florida documentary stamp tax applies to the full consideration regardless of 1031 exchange status: $650,000 ÷ $100 × $0.70 = $4,550. Why not A: 1031 exchanges do not exempt transactions from Florida documentary stamp tax. Why not B: Tax is calculated on the full value of the property being acquired, not just the boot. Why not D: Tax is based on the value of the property being acquired, not relinquished.
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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?
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All of the following transactions are exempt from Florida documentary stamp tax EXCEPT: