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A city has a transfer fee of $1 .00 for each $1,000 of the sales price and the state charges $1.50 per $500 of the sales price for real estate transaction. If the buyer pays 50% of the transfer taxes, what would the seller's transfer tax be on the sale of a $400,000 home

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If the buyer pays 50% of the transfer taxes, the seller's transfer tax for the sale of a $400,000 home is $800.

What is a transfer tax?

A transfer tax is a charge imposed by a city or state when the title to a real estate or property passes from one owner to the next.

In some states, the transfer tax is borne 100% by the seller.  In some other states, the buyer and the seller may be collectively liable for the transfer tax.

Data and Calculations:

                                City            State

Transfer tax rate   $0.001      $0.003 ($1.50/$500)

Transfer tax ($)      $400        $1,200 ($400,000 x $0.003)

Total transfer tax = $1,600

Amount paid by buyer = $800 ($1,600 x 50%)

Amount to be borne by seller = $800 ($1,600 - $800)

Thus, if the buyer pays 50% of the transfer taxes, the seller's transfer tax for the sale of a $400,000 home is $800.

Learn more about transfer taxes at https://brainly.com/question/14298674

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