What taxes are involved in the purchase of a home?

In District of Columbia, taxes are involved in the purchase of a home. These taxes are either required from the buyer or the seller, depending on the agreement between them. The buyer will be responsible for the transfer tax. This tax is a flat fee of 1.45% of the purchase price and is usually paid by the buyer. The buyer is also required to pay the recordation tax. This tax is based on the purchase price and ranges from 0.7% to 2.2%. The seller is usually responsible for the real estate tax. This tax is calculated based on the assessed value of the property and is paid by the seller at closing. In addition, there are certain fees and charges that may be imposed on the purchase of a home. These may include title insurance fees, loan origination fees, and appraisal fees, which are usually the responsibility of the buyer. Finally, there may be additional taxes imposed by the state or local government, such as property tax or local transfer taxes. These taxes vary by jurisdiction and are usually paid by the buyer at closing. In summary, when purchasing a home in District of Columbia, the buyer may be responsible for the transfer tax, recordation tax, and other fees, while the seller is typically responsible for the real estate tax. Depending on the jurisdiction, there may be additional taxes imposed by the state or local government.

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