A married couple is purchasing their first home, a $1.2 million house in Westchester County. They ask their agent about potential exemptions from mansion tax. What should the agent tell them?
Correct Answer
D) There are no exemptions; they will pay the full mansion tax
New York's mansion tax has no exemptions based on buyer status, marital status, or intended use. All residential property transfers of $1 million or more are subject to the full 1% tax regardless of circumstances.
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More Ny Tax Law Questions
All of the following property transactions in New York would be subject to the mansion tax EXCEPT:
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- → All of the following transactions would be subject to New York State transfer tax at $0.40 per $100 of consideration EXCEPT:
- → Sarah is selling her home in Rochester, New York for $180,000. At closing, she notices the New York State transfer tax on her settlement statement. Who is responsible for paying this transfer tax?
- → Michael is purchasing a residential property in Buffalo for $950,000. His real estate agent explains the various taxes due at closing. Regarding the New York State mansion tax, which statement is correct?
- → Jennifer is purchasing a $2.8 million penthouse in Manhattan. Her attorney mentions that in addition to the New York State mansion tax, there may be additional NYC transfer taxes. Which statement correctly describes the tax obligations for this transaction?
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- → A real estate broker is preparing a net sheet for a seller of a $450,000 condominium in Queens, NYC. The broker needs to calculate the total transfer taxes that will be deducted from the seller's proceeds. What is the combined New York State and NYC transfer tax amount?
- → A seller transfers a Manhattan condominium for $850,000. Under NYC's Real Property Transfer Tax (RPTT), what is the total NYC RPTT owed at closing (statutorily imposed on the grantor)?
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Maria is purchasing a $1,750,000 penthouse. The contract states the seller will pay $25,000 toward the buyer's closing costs. For mansion tax purposes, what is the taxable consideration?
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Thomas is buying a $1,450,000 condominium in Syracuse. He will pay cash for the entire purchase. What mansion tax is due at closing?