A real estate agent is explaining closing costs to a buyer purchasing a $800,000 home in Queens. Regarding mansion tax, what should the agent tell the buyer?
Correct Answer
C) No mansion tax applies to this purchase
The New York mansion tax only applies to residential properties with consideration of $1 million or more. Since this property costs $800,000, it falls below the threshold and no mansion tax is due.
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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:
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- → 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?
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Previous Question
A buyer purchases a $3,500,000 luxury home in East Hampton. The property is located in both New York State and within a special taxing district that imposes an additional 0.25% transfer fee. What is the total mansion tax due under New York State law?
Next Question
During a real estate closing in New York, the buyer's attorney discovers that the mansion tax was not included in the closing cost estimate. The property sold for $1,350,000. What action should be taken?