The buyer gets a $280,000 mortgage in Florida. The intangible tax is:
Question & Answer
Review the question and all answer choices
$280
A is incorrect because it represents only half of the correct calculation ($280,000 × 0.001). This error might occur if you mistakenly use 1 mill instead of the correct 2-mill rate.
$560
$840
C is incorrect because it represents three times the correct amount ($280,000 × 0.003). This error might occur if you mistakenly apply a 3-mill rate instead of the correct 2-mill rate.
$980
D is incorrect because it represents 3.5 mills ($280,000 × 0.0035). This error might occur if you confuse intangible tax with other Florida real estate taxes or apply an incorrect rate.
Why is this correct?
B is correct because Florida's intangible tax rate is 0.2% (2 mills) on new mortgages. $280,000 × 0.002 = $560, which is the correct calculation for this tax.
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