Real Estate Math
A Manhattan co-op unit is purchased for $1,500,000. NYC mansion tax at 1.25% (applicable to sales between $2M and $3M) is NOT triggered here. The base NYC mansion tax rate of 1% applies. How much is the mansion tax?
A$0 (sale is under the threshold)
B$15,000✓ Correct
C$18,750
D$150,000
Explanation
The NYC mansion tax applies to purchases of $1,000,000 or more. At $1,500,000, the base rate is 1%. Mansion tax = $1,500,000 × 1% = $15,000.
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