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A home in Wilmington sold for $368,000. The buyer and the seller agreed to split the transfer tax. Neither are first-time homeowners. What's the transfer tax amount they would each pay?

User Vogomatix
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Final answer:

The transfer tax for each party, assuming a hypothetical 1% tax rate on a $368,000 home in Wilmington, would be $1,840. Actual transfer tax rates vary and should be confirmed with local authorities.

Step-by-step explanation:

To calculate the transfer tax amount each party would pay for the home sold in Wilmington, we need the transfer tax rate, which isn't provided. Typically, transfer tax rates are set by local or state governments and can vary widely. If we assume a hypothetical transfer tax rate for this example, let's say 1% of the sale price, the calculation would be as follows:

Sale price of the home = $368,000

Transfer tax rate = 1% (hypothetical)

Total transfer tax = Sale price × Transfer tax rate

Total transfer tax = $368,000 × 0.01

Total transfer tax = $3,680

Since the buyer and seller agreed to split the transfer tax:

Each party's transfer tax = Total transfer tax / 2

Each party's transfer tax = $3,680 / 2

Each party's transfer tax = $1,840

The buyer and seller would each pay $1,840 if the transfer tax rate was 1%. Remember, this is a simplified example and actual transfer tax rates should be checked with local government agencies.

User Arijeet
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