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.
Sorry — you’re right… added an extra zero. So it’s actually even more absurd. It’s a 1% transfer tax, so it’s $10,000 on a million dollar purchase. You’re paying your oh so talented realtor many times that for their amazing service.
So, yes, PAY THE DAMN TAX… stop trying to game the system and protect your precious pennies. You have a million dollars in cash. The mansion tax is meant to bring revenue from the rich (example — someone with a million dollars in cash) and support services in the city.
The property taxes for brownstones (and similar) in this fair city hover around the absurd 0.1% to 0.2% per annum. God forbid you should have to pony up $10k ONCE support the city’s coffers… So effing ridiculous.
But yeah, you can buy the house for $150,000 — then give the seller a suitcase of cash in a back alley. Then both of you can avoid paying taxes! How’s that for an idea!
While your at it, register your car in Pennsylvania.
“Pay the $100,000 tax for chrissake! You’re gonna pay $2200 a year in property taxes instead of the amount you *should* pay…
Posted by: tybur6 at November 11, 2009 10:25 AM”
That does not even make sense. Help me please.
I wish I had 1 million in cash and trying to figure out how not to spend another 10k…actually, I wish I had 10k!
$10,000 tax?
Pay the $100,000 tax for chrissake! You’re gonna pay $2200 a year in property taxes instead of the amount you *should* pay…
No, PHfamily, you’re wrong. I bought a house last year for the purchase price of $999,000. No mansion tax.
As for closing costs, Corcoran has an easy guide (just make sure you’re looking at the right kind of purchase, i.e. co-op vs. house)”
http://www.corcoran.com/guides/index.aspx?page=ClosingCosts
The mansion tax is 1% of the purchase price.
can someone help explain what the mansion tax is and its cost. I just started looking for houses with some friends and our limit was 1M
Thanks,!
The above poster in incorrect.
The price would actually have to be about $980K to avoid the mansion tax….the $1M figure includes purchase price and taxes.