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When Is a Property Sale Subject to Documentary Stamp Tax?

Thu, Mar 31, 2016 at 1:10PM

Documentary stamp tax is imposed under section 201.02 Florida Statutes on documents that transfer interest in Florida real property. It is calculated at a rate of .70 per $100 (other than Miami-Dade County). 

 

There are many examples of documents transferring interest for money (or other consideration which has value) including warranty deeds, quit claim deeds, easements, contracts or agreements for deed, certain assignments, and deeds in lieu of foreclosure.

 

The transfer of interest in real property between spouses is subject to documentary stamp tax UNLESS it is as a result of a divorce or if the property is transferred between ex-spouses within one year of their divorce. If the property is mortgaged, the tax is generally due on half of the outstanding balance of the mortgage(s) on the property.

 

It is not uncommon for a husband or wife to transfer property between the two of them.  For example, a wife may want to add her new husband’s name to her home after they are married.

 

In Florida, no documentary stamp tax is owed on this type of transfer if (a) no money or other consideration is given in exchange for the property and (b) there is no mortgage on the property.  Otherwise, the documentary stamp tax will apply to the unpaid balance of the mortgage or value given for the property.

 

The Department of Revenue is auditing files and imposing a penalty of 10% per month, and interest.

 

For more information, please consult www.myflorida.com/dor/taxes/doc_stamp.html

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