What types of taxes will I have to pay when I buy or sell real estate?

When buying or selling real estate in Florida, you may be required to pay a variety of taxes and fees. Depending on the type of property, there may be taxes due to the Federal, State, and county government. For example, if you purchase or sell a primary residence, you may be required to pay the Federal Capital Gains Tax. This is a tax that is calculated based on the difference of the selling price and the basis price. This tax is paid to the IRS. In addition, the State of Florida imposes the State documentary stamp tax, which is paid at the time of closing. This tax is based on the sales price of the property. Finally, if the property is located within a county, you may be required to pay a transfer tax. This tax is also based on the sale price and sometimes has an exempt amount associated with it. In summary, when buying or selling real estate in Florida, you may be required to pay taxes and fees to the Federal government, State of Florida, and county government. These taxes and fees include the Federal Capital Gains Tax, State documentary stamp tax, and transfer taxes.

Related FAQs

What are the laws governing landlord-tenant relations?
What is a real estate transfer tax?
What is a title insurance policy?
What is the role of a real estate broker in a real estate transaction?
What are the legal requirements for purchasing real estate?
What is a restrictive covenant?
What are restrictions and easements?
What is a contract for deed?
What are the disclosure requirements when I rent out property?
What is a ground lease?

What types of taxes will I have to pay when I buy or sell real estate?

Related FAQs

Related Blog Posts