FloridadoCuMentaryStaMptaX&tranSFerSoFenCuMberedproperty
tax law Section
Chairs:ChristopherDingman-BuchananIngersoll&Rooney&MatthewSchnitzlein-MacfarlaneFerguson&McMullen
Most attorneys that
handle real estate,
estate planning, or
general corporate
matters are aware of Florida
documentary stamp taxes. These
taxes are excise taxes levied on deeds,
bonds, promissory notes and other
written obligations to pay money
and mortgages, liens, and other
documents establishing indebtedness
and can have a
meaningful impact
on the cost of these
transactions.
In addition to
situations where
there is clear liability
for documentary
stamp taxes, some
minor changes in
ownership continue
to be a source of
confusion for clients
and practitioners.
Two areas of specific
concerns are:
1. Transfers of
encumbered
property to
revocable trusts; and
2. Transfers of encumbered prop -
erty to wholly-owned entities.
Floridadocumentary
stamptaxliability
continuestobea
sourceofconfusion
forclientsand
practitioners.
Rule 12B-
4.013(28) provides
that a deed to or
from a trustee
that conveys real
property is taxable
to the extent
that the deed
transfers beneficial
ownership of the
real property and
to the extent
that there is
consideration
for the transfer.
Therefore,
a deed from a
transferor to a
trustee is exempt
from documentary stamp tax to
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