Real Estate Math
A Pennsylvania property sells for $425,000. The state Realty Transfer Tax is 1% and the local tax is 1%, split equally between buyer and seller. How much does the buyer pay in transfer taxes?
A$4,250✓ Correct
B$8,500
C$2,125
D$1,062.50
Explanation
Total transfer tax = $425,000 × 2% = $8,500. Split equally, buyer pays $8,500 ÷ 2 = $4,250. The buyer's share is half of the total 2% transfer tax.
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