What taxes are involved in the purchase of a home?

When purchasing a residential property in New Mexico, several taxes are involved. These taxes are paid at the time of closing, and their amount will vary depending on the sale price of the home. The first type of tax is property taxes. In New Mexico, buyers of a residential property are responsible for the property taxes of the previous owner from the closing date to the end of the tax year. The buyer is then responsible for the property taxes from that point forward. Another tax involved in the purchase of a home is stamp duty, which is a real-estate transfer tax. This tax is paid to the state of New Mexico, and is based on the sale price of the property. Finally, buyers of a residential property in New Mexico are responsible for a transfer tax, which is a surcharge based on the selling price of the home. This tax is used to help fund state and local government services. It is important to note that other taxes may be applicable depending on the sale price of the home, such as capital gains taxes. It is important to consult a tax advisor to ensure all taxes are paid correctly.

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