Real Estate Math
A buyer in NYC purchases a condo for $875,000. The NYC RPTT rate for residential sales over $500,000 is 1.425%. NYC mansion tax at 1% applies since the price is between $1M and $2M — but here the price is $875,000 so mansion tax does NOT apply. RPTT only: what is the RPTT?
A$8,750
B$12,469✓ Correct
C$7,000
D$875
Explanation
NYC RPTT = $875,000 × 1.425% = $875,000 × 0.01425 = $12,468.75 ≈ $12,469. To solve this, multiply the relevant values: $875,000 and $500,000 at 1.425%.. The correct answer is $12,469.. This is a common calculation on the New York real estate exam.
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