Real Estate Math

A Minnesota property sells for $350,000. The deed tax is $1.65 per $500 of net consideration. What is the deed tax owed?

A$577.50
B$1,050
C$1,155✓ Correct
D$1,732.50

Explanation

Deed tax = (Sale Price / $500) x $1.65 = ($350,000 / $500) x $1.65 = 700 x $1.65 = $1,155. The Minnesota deed tax applies to the net consideration (purchase price minus any assumed mortgage). It is paid when the deed is recorded.

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