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Transfer taxes on contract assignments?
I recently had someone tell me that you have to pay transfer taxes when you assign a contract. Is this true?
I've done contract assignments and have never paid any transfer tax. In my mind, there is no transfer of ownership only transfer of interest so there should be no transfer tax. Of course, upon closing the seller and the end buyer would have to pay the tax in accordance with how the payment of transfer tax is stipulated in the agreement - the agreement that was assigned.
I'm putting this out to my trusty BiggerPockets folks to set things straight. Thanks and advance... You guys (and the BP website) are wonderful!
Good to know.
Conveyance in CT is ~1% so on a $5000 assignment, I guess $50 is due for conveyance tax. Not too bad.
Connecticut - CHAPTER 223: REAL ESTATE CONVEYANCE TAX: http://www.cga.ct.gov/2011/pub/chap223.htm
The sales price doesn't change. Send me a text to the phone number below including your email and I'll send you some info.
Originally posted by @Jerry Kisasonak:
@Troy Sheets
The sales price doesn't change. Send me a text to the phone number below including your email and I'll send you some info.
Wow, awesome Jerry, thanks a bunch, text sent!
@Jerry Kisasonak how about sharing here in the forums so others can benefit?
@Steve Babiak @Jerry Kisasonak Hi guys, newbie investor here. I know it has been a while since there has been any activity on this thread but I have been doing some research into transfer taxes on PA real estate, specifically when assigning a contract. I'm wondering whether or not the laws and reg have changed at all since this thread went cold a while ago. Any advice is greatly appreciated, thanks!