Property Transfer Tax?

[bigdog]

Question regarding the N.H. property 'transefer' tax......

When I purchased my property last year, I paid a property ''Transfer' tax at the real estate Closing. This was paid to Belnap County I believe.

Anyway, this tax was split between Buyer and Seller, each paying 1/2.

I was told by my attorney,at the time, that this tax is deductible on my Federal tax form. However, my CPA accountant, is now telling me I cannot deduct this tax on my 2010 Federal tax return.

I was told by CPA that the tax can be taken as a deduction off my Federal taxes, but only when I sell the property. Apparently, I would take this tax off the basis selling price, as part of any capital gains.

Anotherwords, the Seller who sold me the property, can take this off his taxes for 2010 return, but I cannot. Doesn't seem fair to me ?

Anyone else run into this same issue with 'transfer tax'.

Thanks,
BD

[codeman671]

Property transfer taxes are not deductible according to a quick internet search. I always thought that they were but obviously they are not.

[lawn psycho]

Sucks but all it does is increase your basis price at the time you sell as part of you "gain" calculation. I thought it was deductible too and had the same suprise.

[Argie's Wife]

Anotherwords, the Seller who sold me the property, can take this off his taxes for 2010 return, but I cannot. Doesn't seem fair to me ?



Did you really use the words "taxes" and "fair" in the same paragraph? :D

[TOAD]

Did you really use the words "taxes" and "fair" in the same paragraph? :D

Great observation! ;)

[fatlazyless]

TAX-a-HAMPSHIRE!

At one percent, split halvsies between the buyer and the seller, isn't New Hampshire the FIRST in the NATION at the top of the list, for its' real estate transfer tax. No other state has a higher real estate transfer tax!

New Hampshire is NUMBER ONE......Tax-a-Hampshire....at least for its' real estate transfer tax!

With the decline in home selling prices, that means the state will be seeing a lot less tax revenue from its' real estate transfer tax revenue for 2011. This says that it is now a good time to be raising the rate from one to 1 1/2%. What the heck, the state needs the money, and all property owners are still sitting on huge gains, at least on paper!

[MAXUM]

The RE transfer tax is reprehensible. No doubt the brain child of some ex Massachusetts liberal that moved up here. At some point it has to stop, the spending at the federal and local levels continues to be out of control. Welfare recipients are on the rise demanding more and more, the working guy is getting squeezed and politicians are padding their pockets. The day is coming when it all comes crashing down, just a matter of when.

[bigdog]

What Argie's wife said was very true, what was I thinking
'"taxes" and "fair" in the same paragraph ! :laugh:

Maxum, you're right on, tax and spend is becoming a serious problem in NH and getting worst, it must stop. Only voice, we as taxpayers have, is at the ballot box, and we make the right choices.....

Just some political humor going into the weekend.....

It was so cold the other day..... "How cold was it' ?
Is was so cold, I actually saw a politician with his hands in his own pockets ! :laugh:

BD

[Sue Doe-Nym]

NH rate has been at 1.5% for about 6 or 8 years. As mentioned above, it is customarily split 50/50 between buyer and seller. There are plenty of other states with rates higher including some that have a sales tax and an income tax. Anyone who thinks NH is a tax free state hasn't lived here.

[gf2020]

fat, you are incorrect that the tax is 1% and you are incorrect that NH has the highest transfer tax in the country. Do you ever check your facts before posting?

[fatlazyless]

fat, you are incorrect that the tax is 1% and you are incorrect that NH has the highest transfer tax in the country. Do you ever check your facts before posting?

Hey, maybe I'm incorrect but at least I'm consistent! So, inquiring minds want to know, what's the low-down on which of the fifty states has the highest real estate property transfer tax, plus maybe toss in some similar info on the meals & lodging taxes too. There had been some talk in NH about lowering the meals & lodging tax from nine back down to the oldie 2008 rate of 8%.

[wifi]

Hey, maybe I'm incorrect but at least I'm consistent! So, inquiring minds want to know, what's the low-down on which of the fifty states has the highest real estate property transfer tax, plus maybe toss in some similar info on the meals & lodging taxes too. There had been some talk in NH about lowering the meals & lodging tax from nine back down to the oldie 2008 rate of 8%.

If you don't like NH that much, then why don't you move back to Mass? :) :) :) :)

[lawn psycho]

Maine charges $2.20/$500 of value split between buyer and seller.
This is nothing but a money grab every time a house is sold.

Never understood how transfer taxes were justified for house that is already taxed annually. In some municipalities in the US you not only pay huge permit and impact fees but then you also get dinged for a transfer tax.

The guy who lives in the house and doesn't sell benefits from these fees. Pyramid schemes abound in this country.....

Psst: FLL, Maine already has a sales and income tax too. Now matter how much money they have, they'll spent it and more. I can't wait to jump back across the border to NH.