Learn about Kentucky’s real estate transfer tax: a quick guide

Is transfer tax deductible?

Your federal income tax return is not deductible for real estate transfer tax. However, when you need to calculate your Capital gains For sale from your home.

If you make money on home sales, the IRS allows you to calculate certain fees, such as real estate commissions, attorney fees and Transfer tax as sale fee. These expenses can be subtracted from the final selling price of your home, effectively reducing the amount of taxable income. While this does not eliminate the transfer tax itself, it can help minimize tax liability for sales revenue.

Transfer tax exemption

Sellers in Kentucky may be eligible for waivers, depending on their home sales. Here are some examples where transfer tax can be applied:

• Transfers recorded before March 27, 1968
  
• Transfer to and from the U.S. government, Kentucky or local government (including gifts or deeds considered in name)
  
• Transfers designed only to provide or release security for debt
  
• Deed to confirm or correct previously recorded deeds
  
• Transfer between spouses or part of divorce
  
• Sales are for settlement of tax arrears or for assessment
  
• Transfer due to property zoning
  
• Transfer from merger, merger or business entity
  

For a complete list, please consult Kentucky Regulations About real estate transfer tax.

Estimated transfer tax on home sales

To get a better idea of ​​what you might be walking after selling Kentucky, try it Homelight’s Network Revenue Calculator. This free tool factor (such as agency board, transfer tax and repair costs) is to help you estimate the bottom line.

To make a more detailed breakdown, Top real estate agents. Experienced local agents can help you clarify your possible transfer tax obligations and whether there is room for negotiation who pays fees based on current market dynamics. Getting professional advice in advance can help you avoid being surprised at the closing ceremony.

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

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