When a buyer purchases a house with a "subject to" mortgage, which of the following taxes must be paid?

When a buyer purchases a house with a "subject to" mortgage, the relevant tax that must be paid is the tax on the deed. This tax is typically known as the documentary stamp tax in Florida and is assessed when the property is transferred from the seller to the buyer. It applies to the transaction of transferring ownership, regardless of the mortgage situation.

Choosing the right tax in this scenario is crucial because it reflects the financial responsibilities associated with the transfer of property ownership. While property tax is an ongoing obligation tied to the ownership of the property and must continue to be paid by the owner, it is not a tax specifically incurred upon the sale or transfer of the property. Sales tax pertains to the purchase of goods and services, while income tax is related to earnings and not applicable to real estate transactions directly. Thus, understanding the role of the deed tax in this specific context is vital for anyone involved in real estate transactions.