A real estate investor purchases three properties in a single transaction for a total of $720,000. The breakdown is: Property A for $280,000, Property B for $190,000, and Property C for $250,000. What is the total New York State transfer tax due?
Correct Answer
D) $2,880
New York State transfer tax is calculated on the total consideration of $720,000. $720,000 ÷ $100 = 7,200 units. 7,200 × $0.40 = $2,880.
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During a real estate closing in New York, the title company collects the transfer tax and forwards it to the appropriate government entity. What is the primary purpose of New York's transfer tax?
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