For a property worth $550,000, what is the calculated amount of the documentary stamp tax?

To determine the appropriate amount of the documentary stamp tax for a property valued at $550,000, one must first know the rate at which the stamp tax is assessed. Documentary stamp taxes typically apply to the sale of real estate transactions and often vary by jurisdiction.

Assuming a tax rate of $0.70 per hundred dollars (a common rate in many areas), the calculation would be as follows:

1. Divide the property value by 100 to find how many hundreds are represented in $550,000.

• $550,000 ÷ 100 = 5,500

2. Multiply the number of hundreds (5,500) by the tax rate ($0.70).

• 5,500 × $0.70 = $3,850

This results in a total documentary stamp tax of $3,850, making this option the correct answer. This method of calculation is essential to know, as it directly affects the total transaction costs related to property ownership and conveyance. Understanding local tax rates and how to apply them is crucial for real estate professionals and buyers alike.