A buyer is purchasing a cooperative apartment in Manhattan for $1,800,000. The buyer will finance 80% of the purchase price. What is the mansion tax due at closing?
Correct Answer
B) $18,000
The mansion tax is calculated on the full purchase price, not the loan amount. Even though this is a co-op (personal property), it is still subject to mansion tax. Calculation: $1,800,000 × 1% = $18,000.
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