You have purchased a home for $335,000, which a year ago was worth $700,000. You placed 10 percent down and took out a mortgage for the balance. How much will you have to pay for the documentary transfer tax if the tax rate is $1.75 per $1000 of the purchase price?

To calculate the documentary transfer tax, we can follow these steps:

1. **Determine the purchase price**: The purchase price of the home is $335,000.

2. **Find the tax rate**: The tax rate is $1.75 per $1,000 of the purchase price.

3. **Calculate the tax**:
   \[
   \text{Tax} = \frac{\text{Purchase Price}}{1000} \times \text{Tax Rate}
   \]
   Plug in the numbers:
   \[
   \text{Tax} = \frac{335,000}{1000} \times 1.75 = 335 \times 1.75 = 586.25
   \]

So, you will have to pay **$586.25** in documentary transfer tax.

Would you like any more details or have any questions?

Here are some related questions:
1. How is the down payment calculated if it's 10% of the purchase price?
2. What is the balance of the mortgage after placing 10% down?
3. How do transfer tax rates vary by location?
4. What other costs are typically involved in purchasing a home?
5. How would a higher purchase price affect the documentary transfer tax?

**Tip:** Transfer taxes can vary by state or municipality, so always verify the rate specific to your area.

Learn how to calculate the documentary transfer tax for a $335,000 home purchase using the formula (Purchase Price / 1000) × Tax Rate. The example involves placing a 10% down payment and taking out a mortgage for the balance. Ideal for high school students (Grades 10-12) studying percentage and proportional tax calculations.

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