Question

A buyer purchased a North Carolina home for $475,250. The seller allowed the buyer to assume his first small mortgage with a loan balance of $110,000. How much is the excise tax paid in the transaction? $951 $729.50 $950.50 $221 none of the above

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Sigrid

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101 Answers

729.50= nearest answer
To calculate the excise tax paid in the transaction, we need to determine the taxable amount first.
The taxable amount is the purchase price of the home minus the loan balance assumed by the buyer.
Taxable amount = Purchase price - Loan balance
Taxable amount = $475,250 - $110,000
Taxable amount = $365,250
Now, let's calculate the excise tax. The excise tax rate varies by state, and in North Carolina, the rate is $1 for every $500 of the taxable amount.
Excise tax = Taxable amount / $500
Excise tax = $365,250 / 500
Excise tax = $730.50
Answer: The excise tax paid in the transaction is $730.50.

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