A buyer takes a $250,000 mortgage in Florida. What is the intangible tax?
Question & Answer
Review the question and all answer choices
$250
A is incorrect because it represents half the correct amount, likely resulting from using a tax rate of 1 mill instead of the required 2 mills for Florida intangible tax.
$500
$750
C is incorrect as it represents three times the correct amount, possibly from misreading the tax rate as 3 mills instead of 2 mills.
$1,000
D is incorrect as it represents four times the correct amount, likely from using 4 mills instead of the required 2 mills for Florida intangible tax.
Why is this correct?
B is correct because Florida law imposes an intangible tax of 2 mills ($0.002 per dollar) on mortgage debt. For a $250,000 mortgage, the calculation is $250,000 × 0.002 = $500, which matches option B.
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