**Greetings from Branon and Jelena Edwards from Coldwell Banker!

As promised, here is our latest MiamiRealty Newsletter update on Florida
Real Estate Taxes. This time, we are going to discuss the three taxes that
are part of most real estate sales/purchase transactions.

Of course, if you or anyone you know is considering buying or selling real
estate in Florida, please let us know. We will be happy to contact them
directly.

Of course, they can also contact us via our newly remodeled website:
http://www.ScubAHH.com

---------- CONGRATULATIONS ----------

We would like to send congratulations to Jan and Eddie and their toy
yorkie, Mollie. We helped them close on their new Cape Coral home two
weeks ago and just closed the sale on their previous Punta Gorda townhouse
this morning. CONGRATS ON YOUR NEW HOME!! Enjoy that new jacuzzi!

---------- FLORIDA TAXES ----------

'DOC STAMPS'
This phrase is actually used to describe two separate real estate taxes
called Documentary Stamp Taxes.

1) SELLER'S DOC STAMPS
This is the tax that sellers pay whenever they sell a property in Florida.
The tax rate is 70 cents per hundred. To determine the tax on the sale of
your property, simply divide the sales price by 100 and then multiply the
result by $0.70. But there's a catch, if you get any portion of a decimal
when you divide by 100, you have to round up to the next dollar.

Example:
Sales Price = $110,000
110,000 divided by 100 = 1100
1100 x 0.70 = $770

Sales Price = $110,940
110,999 divided by 100 = 1109.40 (don't forget to round up)
1110 x 0.70 = $777


2) MORTGAGE DOC STAMPS
Whenever a mortgage or loan is taken against a property (either a new loan
or a loan assumption), the state collects a mortgage documentary stamp tax,
which is 35 cents per hundred. The same rounding rule applies. This tax
is only paid on the amount of the mortgage, not the total sales price.
This tax also applies to home equity loans.

Example:
Sales Price = $110,000
Loan Amount = $88,000 (typical 80% loan to value)
88,000 divided by 100 = 880
880 x 0.35 = $308


3) INTANGIBLE TAX
Whenever a NEW mortgage or loan is created, the state collects yet another
tax, called an intangible tax, which is 2 mills (0.002) of the loan amount.
This is paid IN ADDITION to the Doc Stamp Tax on the loan. This tax is
easy to figure out since it is a simple tax rate on the total loan. You
don't have to divide by 100 first. This tax also applies to home equity
loans.

Example:
Sales Price = $110,000
Loan Amount = $88,000 (typical 80% loan to value)
88,000 x 0.002 = $176


ADDING IT ALL UP
On a typical real estate transaction, all three of these taxes are paid.
The seller pays doc stamps for selling the property, and the buyer pays doc
stamps on his loan, plus the intangible tax because it is a new loan. If
the buyer was assuming an existing loan, the buyer would NOT have to pay
the intangible tax.

So, on this $110,000 Sale example, the government picks up a total of $1,254.

Next time, we'll talk about annual property taxes and how you can make up
to a 5% discount on your total property tax bill.

As always, thank you for the opportunity to earn your business.

Cordially,



--Branon A. Edwards, Licensed Florida Realtor®
--Jelena Panfilova Edwards, Licensed Florida Real Estate Agent

Branon Direct: 786-417-4910
mailto:Branon@...

Jelena Direct: 786-417-4911
mailto:Jelena@...

Our Private Fax: 786-524-5747

VISIT OUR WEBSITE:
http://www.ScubAHH.com

---- Office Information ----

Coldwell Banker® Residential Real Estate, Inc.
328 Crandon Blvd, Suite 127
Key Biscayne, FL 33149 USA

Statewide Websites:
http://www.floridamoves.com/branon.edwards
http://www.floridamoves.com/jelena.panfilova
http://www.coldwellbanker.com/for/edwards