What is the documentary stamp tax due on a promissory note in the amount of $185,500 that is secured by a mortgage on Florida real estate?
Correct Answer
A) $649.25
Correct: Documentary stamp tax on promissory notes secured by Florida real estate is $0.35 per $100: $185,500 ÷ $100 = 1,855 taxable increments × $0.35 = $649.25. Why not B: This incorrectly uses the deed tax rate of $0.70 per $100. Why not C: This uses an incorrect calculation method. Why not D: This incorrectly applies $1.00 per $100 instead of $0.35 per $100.
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All of the following transactions are exempt from Florida documentary stamp tax EXCEPT:
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A developer is selling 50 lots in a new subdivision. Each lot sells for $75,000. The developer's attorney suggests recording one deed for all 50 lots with a single buyer who will then subdivide and resell. What is the documentary stamp tax consequence of this strategy?