A property sells for $350,000 in Florida. The documentary stamp tax on the deed is:
Question & Answer
Review the question and all answer choices
$1,225
Answer A ($1,225) is incorrect as it represents half of the correct amount. This error likely comes from using $0.35 per $100 instead of the correct $0.70 rate. Always verify Florida's current tax rate as it's a common point of confusion.
$2,450
$3,500
Answer C ($3,500) is incorrect as it represents the result of dividing $350,000 by 100 without applying the tax rate. This mistake occurs when students forget the final multiplication step in the calculation process.
$700
Answer D ($700) is incorrect as it represents $0.20 per $100 of sale price. This error might result from confusing Florida's deed tax with other documentary stamp taxes or misremembering the tax rate entirely.
Why is this correct?
Answer B ($2,450) is correct because it properly applies Florida's documentary stamp tax formula: $0.70 per $100 of sale price. The calculation $350,000 ÷ 100 = 3,500 × $0.70 = $2,450 follows the exact method required by Florida law for this tax.
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