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?
Correct Answer
B) Tax is due on the total $3,750,000 transaction to the single buyer
Correct: Documentary stamp tax is due on each deed based on the consideration paid, so the single deed for $3,750,000 (50 × $75,000) would be taxed on the full amount. Why not A: The tax applies to the actual deed recorded, not the intended future sales. Why not C: There is no bulk sale exemption for documentary stamp tax in Florida. Why not D: Florida law does not provide reduced rates for bulk transactions.
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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?
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