Posted on: 10th Jul, 2007 07:51 pm
when use the warranty deed to tranfer a property,do I need to pay sale tax?
Hi Ccprat,
When you will use the warranty deed for the property transaction, you will have to pay the capital gain tax. The required amount of tax to be paid depends on your profit made from the sale of the property. You can also exclude up to $250, 000 on the profit from the sale.
To know more on capital gains exemption, take a look at
http://www.mortgagefit.com/postdeal/taxexemption-homesale.html
When you will use the warranty deed for the property transaction, you will have to pay the capital gain tax. The required amount of tax to be paid depends on your profit made from the sale of the property. You can also exclude up to $250, 000 on the profit from the sale.
To know more on capital gains exemption, take a look at
http://www.mortgagefit.com/postdeal/taxexemption-homesale.html
Hello Cccprat,
A sale tax is a consumption tax levied on purchase or sale of personal goods and services within a state. So, if you use the warranty deed for transferring property, you need not pay any sale tax. You may have to pay only the capital gains tax as said by Larry.
A sale tax is a consumption tax levied on purchase or sale of personal goods and services within a state. So, if you use the warranty deed for transferring property, you need not pay any sale tax. You may have to pay only the capital gains tax as said by Larry.
Also remember if there is a mortgage then it has to be refinanced by the new owner or be paid off at the time property transfer occurs.
Miller
Miller
"when use the warranty deed to tranfer a property"
Warranty deed is used when there is no mortgage or any other type of lien on the property.
If a lien exists on the property then a warranty deed cannot be used.
As in such a situation the seller will not be able to transfer clear title to buyer.
Warranty deed is used when there is no mortgage or any other type of lien on the property.
If a lien exists on the property then a warranty deed cannot be used.
As in such a situation the seller will not be able to transfer clear title to buyer.