Learn about Broward County’s transfer tax: a quick guide

Are you a Broward County homeowner, during the sale or purchase of a home? If so, you may have questions about the transfer tax. Is there a Broward County transfer tax? How much? Who is responsible for the payment?

Don’t worry. Our quick guide will help explain how transfer taxes work in Broward County and Florida, so you can better understand what you expect when selling your home in Sunshine State. Additionally, we will explain the impact of the transfer tax on capital gains and provide you with a list of exemptions you may be eligible for.

What is transfer tax?

The Federal Trade Commission defines transfer tax as “State or local taxes are payable when the owner of the property passes from one owner to another. ”

The government exchanges taxes on this when you pass the title of the house (the legal right to own the property) to someone else.

The place where your property is located will determine what you will owe transfer taxes based on local state, county or city guidelines. Like other taxes, these taxes are intended to generate income.

Transfer taxes are sometimes called “record stamp tax,” just like Florida.

Who pays the transfer tax?

Typically, the seller pays any transfer tax required for Broward County. However, in Florida, all parties to real estate transactions are responsible for transfer taxes, regardless of who agrees to pay the tax (unless there is an exemption), so it is important before signing the sales agreement before signing these details.

What is the type of transfer tax?

Transfer taxes may vary according to local regulations, but are usually divided into three categories: state, city, and county. Here is a brief introduction to how Broward County works:

National transfer tax

Florida real estate transfer fees are $0.70 for every $100 property value.

For example, if you sold a $500,000 home in Florida, you can use it to estimate your documentary stamp tax:

• All-State: $500,000 divided by 100 x $0.70 = $3,500

County transfer tax

Broward County’s real estate transfer fee is $0.70 at the property value per $100.

Other transfer fees

In addition to transfer tax, you may also experience additional expenses, such as those of a homeowner association or a local neighborhood organization. As these fees can vary widely by location, it is recommended to seek guidance from a professional.

If you are considering selling a home without a real estate agent, consulting a professional can clarify the process and help you understand the pros and cons of selling a home without a real estate agent.

Is transfer tax deductible?

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

However, you may be able to lower the amount you pay in capital gains tax.

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

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