Are you a Broward County homeowner in the process of selling or buying a home? If so, you might have questions about transfer taxes. Is there a Broward County transfer tax? How much is it? Who is responsible for paying it? Don’t worry. Our quick guide will help explain how transfer taxes work in Broward County and in Florida, so you can get a better handle on what to expect when selling your home in the Sunshine State. Additionally, we will explain the impact of transfer taxes on capital gains and give you a list of exemptions you might qualify for. The Federal Trade Commission defines transfer taxes as a “ When you pass the title of your home — your legal right to own the property — to someone else, the government charges a tax on this exchange. Where your property is located will determine what you’ll owe in transfer taxes according to local state, county, or city guidelines. Like other taxes, these are designed to generate revenue. Transfer taxes are sometimes referred to as “documentary stamp taxes,” as is the case in Florida. Typically, the seller pays for any required transfer taxes in Broward County. However, in Florida, all parties of a real estate transaction are liable for transfer taxes, regardless of who agrees to pay for it (unless there are exemptions), so it’s important to hammer out these details before signing the sales agreement. Transfer taxes can differ based on local regulations, but they generally fall into three categories: state, city, and county. Here’s a brief look at how it works in Broward County: Property transfers in Florida are subject to a transfer tax of $0.70 for every $100 of the property’s value. Broward County property transfers are subject to a county transfer tax rate of $0.70 per $100 of the property’s value. Beyond transfer taxes, you may encounter additional fees, such as those from homeowner associations or local neighborhood organizations. Since these fees can vary significantly by location, it’s advisable to seek guidance from a professional. If you’re considering selling your home without a realtor, consulting a professional can clarify the process and help you understand the pros and cons of selling a house without a realtor. Transfer taxes are, unfortunately, not eligible for tax deduction. However, you might be able to lower the amount you pay in capital gains taxes. Capital gains, defined as the profit obtained from the sale of your home or the financial gain from selling your property, are subject to federal taxation just like profits from the sale of other assets. Sellers have the option to treat paid transfer taxes as selling costs, allowing them to subtract these from their home’s closing sale price, according to the IRS. By doing so, they can diminish the capital gains taxes owed on any profit earned.What are transfer taxes?
Who pays for transfer taxes?
What are the types of transfer taxes?
State transfer taxes
County transfer taxes
Other Transfer Fees
Are transfer taxes deductible?
