What is the state intangible tax for a buyer assuming a mortgage of $60,000 and taking out a new mortgage of $20,000?

What is the state intangible tax for a buyer assuming a mortgage of $60,000 and taking out a new mortgage of $20,000?

• A. $20
• B. $30
• C. $40
• D. $50

Answer: (C)

To determine the state intangible tax for a buyer assuming a mortgage, you need to know the rate of the intangible tax and how it is applied based on the value of the mortgage being assumed. Generally, the intangible tax is assessed per $1,000 of the mortgage amount. In this case, the buyer is assuming a mortgage of $60,000 and additionally taking out a new mortgage of $20,000, leading to a total mortgage obligation of $80,000. The state intangible tax is typically calculated based on the total mortgage amount. Depending on the state's specific regulations, the tax rate could vary. However, if we use a common tax rate of $0.20 per $100 of the mortgage amount (or $2.00 per $1,000), you can calculate the tax as follows: 1. Calculate the total mortgage: $60,000 (assumed) + $20,000 (new) = $80,000. 2. Apply the tax rate: - $80,000 ÷ $1,000 = 80 - Multiply by the tax rate (assuming $2.00 per $1,000): 80 * 2 = $160. However, the question is focused

To determine the state intangible tax for a buyer assuming a mortgage, you need to know the rate of the intangible tax and how it is applied based on the value of the mortgage being assumed. Generally, the intangible tax is assessed per $1,000 of the mortgage amount. In this case, the buyer is assuming a mortgage of $60,000 and additionally taking out a new mortgage of $20,000, leading to a total mortgage obligation of $80,000.

The state intangible tax is typically calculated based on the total mortgage amount. Depending on the state's specific regulations, the tax rate could vary. However, if we use a common tax rate of $0.20 per $100 of the mortgage amount (or $2.00 per $1,000), you can calculate the tax as follows:

1. Calculate the total mortgage: $60,000 (assumed) + $20,000 (new) = $80,000.

2. Apply the tax rate:

• $80,000 ÷ $1,000 = 80

• Multiply by the tax rate (assuming $2.00 per $1,000): 80 * 2 = $160.

However, the question is focused