The taxability of a real estate transaction is dependent on both the type of transaction and the jurisdiction in which the property is located. For many states, a tax is applied to the direct transfer of an asset of real property. Seventeen states have elected to tax the indirect transfer of a controlling interest in real property.
Whether the tax is assessed on the direct or indirect transfer of assets the levy may be as high as 3 - 4% of the purchase price. To further complicate matters, as more states add controlling interest taxes and other new transfer tax provisions to existing regimes, these changes frequently lack sufficient guidance or interpretation to account for the unique facts of a controlling interest transfer.
Let Regency Advisory Group help you navigate the constant changes in state laws for your pending real estate purchase and assist with planning opportunities to help you limit your transfer tax liability or to secure refunds for overpayment of taxes in prior periods.