Learn about Boston’s transfer tax: a quick guide

Is transfer tax deductible?

Unfortunately, the transfer tax does not comply with the tax relief.

However, you can lower the amount you pay in capital gains tax.

Capital gains are defined as profits obtained from the sale of your home or the sale of your property, just like profits from the sale of other assets, paid federal taxes.

The IRS said sellers can choose to treat paid transfer taxes as sales expenses, allowing them to subtract those expenses from the closing sale price of the home. By doing so, they can reduce the capital gains tax owed to any profits they earn.

Transfer tax exemption

Some Massachusetts homeowners may qualify for a transfer tax exemption, but it may depend on the details of the deal.

The following are several situations where transfer tax exemption is applicable:

• Mortgage lawsuit
• Correctly, modify or supplement the deeds of previously recorded deeds
• The story of transfer between husband and wife when there is no currency consideration
• Tax deeds
• The act of releasing property as a guarantee of debt
• Deeds of property between owners without any currency considerations
• Foreclosure of party mortgages

Estimate transfer tax on your Boston home sales

Ready to sell your Boston home?

To see what you might be walking around, consider using Homelight’s net income calculator. The tool illustrates essential costs such as settlement fees, transfer taxes, agency fees, and any improvements made to the property, allowing you to make a reasonable baseball stadium estimate of your potential income from the sale.

Additionally, working with top real estate agents can provide valuable insights into your situation. Homelight can connect you with experts in today’s Boston real estate market and reassure you that you need to sell your home with confidence.

Editor’s Note: This article is for educational purposes only and does not constitute legal or financial advice. Links and references to Boston Area Tax Services or attorneys should not be considered endorsed.

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