Mansion Tax
I’m looking at buying a 1 family house for around $1MM in cash. I’ve seen different explanations of the mansion tax. Can anyone confirm if it is just on the sale price, or is it the sale price plus closing costs /taxes (if over $1MM)? Any idea on what the closing costs would be on…
I’m looking at buying a 1 family house for around $1MM in cash. I’ve seen different explanations of the mansion tax. Can anyone confirm if it is just on the sale price, or is it the sale price plus closing costs /taxes (if over $1MM)?
Any idea on what the closing costs would be on a home this price? I know that no mortgage avoids many taxes and costs, but would appreciate a rough figure.
Splenda — First, thank you for calling me a moron.
Second, I would point you to READ the original post. He, in fact, did say he has a suitcase of cash… not a $200,000 down payment.
Third, my view is not “deluded” — in fact, I would argue that someone employing “tax shelters” (legal or otherwise) are anti-social and deluded… and YES, everyone SHOULD be happy paying taxes (in general). It’s called paying for SHARED social services and products. It’s called living in a society.
Fourth, I sincerely hope that these tax shelters are destroyed and the wealthy (yes, folks that can afford a $1 million house are wealthy… 20% down payment types and all-cash alike) and the wealthy are required to endure a progressive tax burden for ALL of their assets.
Fifth, I find it amusing that you share the opinion that $1 million is not a great deal of money.
Sixth, yes… the buyer pays the realtors — either directly or indirectly. And I find it disgusting that the real estate market has absolutely no problem tolerating the inadequacies and overpriced services of real estate brokerage firms, BUT will turn around an bitch about $10,000 that will help fun street lights, police, fire fighters, etc.
tybur6, your rants are getting more insane by the day. First, just because someone buys a million dollar home, does NOT mean they have a million dollars. You ever hear of a mortgage? As someone else pointed out above, they likely put down between $200,000 and $400,000 of the purchase price. Second, the buyer does not pay the realtor – the seller does. So, your point that the buyer is fine with payign a realtor $50K but not $10K in taxes is moronic as well. Furthermore, even if the buyer was paying the realtor his/her commission, that does not mean the buyr “is fine with” it (as your state). Rather, it measn the buyer wants the property and will pay what he needs to pay (which may include a broker commission). Third, just because a buyer can afford a home, that does not mean that he wants to pay taxes. If he can get around the mansion by paying less than a million, then great. Have you ever heard of a tax shelter? (Since you probably don’t know, it is a mechanism to shield income from taxes and 100% legal.) But, I guess in your deluded view of the world, everyone should be happy with with paying taxes. I repeat – you sound like a total moron.
That is my problem – you label it as ‘avoid’. I mean when we all do deductions on our taxes we inherently avoid paying certain amount of tax. And pretty sure we have dodge significant amount of tax by extending deductions a ‘bit’.
Who cares if he has a million dollars. So when a hobo starts giving you lessons on your income tax return I’m sure you will be open to that?
Of course I don’t condone exploiting loop holes or anything illegal but to grandstand about OTHERS SHOULD be paying in taxes is bit much.
Crimsonson — I may be being a bit hyberbolic, but…
(1) I get a little grumpy when someone presents their “problem” as trying to avoid ponying up $10k when they have just said they basically have the equivalent of a chest of gold. ($1 million is cash!) The amount of money involved, when you look at the bigger picture, almost doesn’t justify even *asking the question* never mind consulting lawyers, accountants and so on. Like I said, everyone is fine with paying the realtors $50k for their (combined) 25 hours work… whining about a $10k tax seems obnoxious.
(2) Umm… yeah… if it takes a tax to remind some of you that $1,000,000 is IN FACT a lot of damn money… then so be it. Something has to remind you of this once in a while. If a million dollars “doesn’t buy you much in NYC” — that suggests to me that like the market has gone of the deep end. The least of your worries are the 1% transfer tax.
Jaysus H. Christmas
We’ve all neglected the second half of the poster’s question:
“Any idea on what the closing costs would be on a home this price?”
I’ve heard that a buyer should expect to pay, in taxes, closing costs, and other fees, between 5 and 15 percent of the purchase price. But this is such a wide window. Plus, I don’t know about the accuracy of this estimate.
Does anyone have more intelligent or detailed info about closing costs, closing taxes, and other expenses associated with closing?
Where’s stevieB and the “screw the middle class” mantra on this one?????????
I love the logic of pay the tax because you feel he should and it is some kind of good thing because it prevents over spending.
LOL – pure genius.
Do I Splenda? I’m glad you think so. I hope your taxes go up.
tybur6, you sound like an utter moron.