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?
Correct Answer
B) Michael is not subject to the mansion tax because the purchase price is under $1 million
The New York State mansion tax only applies to residential real property transfers with a consideration of $1 million or more. Since Michael's purchase price is $950,000, he is not subject to the mansion tax regardless of location within New York State.
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Sarah is purchasing a luxury condominium in Manhattan for $1,250,000. At closing, who is responsible for paying the New York State mansion tax?
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A developer is selling newly constructed townhouses in Brooklyn. Three units are priced at $875,000, $1,150,000, and $1,350,000 respectively. For which transactions will the buyers be subject to the New York State mansion tax?