Question

A tax applied to the purchase price of a property at the time of the transfer of ownership or acquisition of a beneficial interest in that real estate.

A) Capital gains tax
B) Property tax
C) Land transfer tax
D) Sales tax

Answer 1

A land transfer tax is imposed on the purchase price of property at the point of ownership transfer; this one-time tax differs from property tax, capital gains tax, and sales tax. Option c

Step-by-step explanation:

The tax described in the question is a land transfer tax, which is applied to the purchase price of a property upon the transfer of ownership or acquisition of a beneficial interest in real estate.

Unlike property tax, which is periodically imposed on the value of real estate owned by individuals or entities, the land transfer tax is a one-time tax paid at the time of acquiring a new property.

This tax is distinct from capital gains tax, which pertains to increases in the value of owned assets, and sales tax, which is levied on a broad range of goods and services transactions. Option c