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Daniel and Melissa just bought a new house for $200,000. Each quarter, they now have to pay $4,000 in taxes. Which type of tax are they most likely paying because of this purchase?

a. Estate
b. Inheritance
c. Real estate property
d. Income

User Balraj
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1 Answer

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Final answer:

Daniel and Melissa are likely paying real estate property taxes on their new house, which is a common tax obligation for homeowners to fund local public services.

Step-by-step explanation:

Daniel and Melissa are most likely paying real estate property taxes because of their new house purchase. Property taxes are periodically due payments that property owners pay to local governments, usually paid quarterly or annually, and they are based on the assessed value of the property. This type of tax is used to fund various public services such as schools, roads, and emergency services.

By contrast, estate taxes are levied on the transfer of the estate of a deceased person, inheritance taxes are imposed on those who inherit property, and income taxes are based on an individual's earned income from work or investments. The taxes Daniel and Melissa are paying are part of their regular expenses as homeowners, and these taxes are typical for property owners.

User Icelava
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