Sales Tax On CFD?
I'm looking to buy my first house on a contract for deed and I was wondering how my 6% PA sales tax would be paid.
Do I pay sales tax on the principle payed each year? I'm going to talk to a CPA but was wondering If I could get some info in advance THANKS
Normally, the taxes are paid when the deed is recorded, not when the deal is complete. I am not sure about PA, but most jurisdictions I know charge a transfer tax, not sales tax, but your CPA will be able to give you specific information. Also, you may want to talk to your title company.
I am unaware of any state which imposes sales taxes on real estate transactions.
Thanks for the info. For some reason I was think sales tax would be a problem. Just a newbie.
No problem kid. We were all newbies once.