B) The Secretary shall work with lawyers, representatives of title companies, district clerks and other interested parties to recommend an alternative method of demonstrating compliance with land transfer taxes. While property taxes can help you lighten your tax bill at the end of the year, state and regional land transfer taxes are not tax deductible. The IRS does not consider land transfer tax to be a “sales tax.” These provisions describe the circumstances in which an Arkansas County recorder may register a deed after the transfer of real estate. Most importantly, before the beneficiary or buyer (or his representative) can register a deed proving the transfer of ownership, he must provide proof of payment of land transfer tax or proof of exemption from payment of land transfer tax. In addition, the instrument must contain on the front a note indicating that the above-mentioned affidavit has been completed, or a note affixed to or on the instrument stating: “I confirm, under penalty of false swearing, that document stamps or a documentary symbol have been affixed to this instrument in the legally correct quantity.” This declaration must be signed by the beneficiary (or his representative) and his address must also be indicated on the document. (c) (1) If it is clear from the content of the document without reference to other written or external evidence that the document is exempt from land transfer tax in accordance with one (1) of the provisions of § 26-60-102, the District Clerk may register the document without applying for the certificate admissible as an alternative to the affidavit. In the case of the transfer of immovable property that is not subject to land transfer tax, an affidavit or compliance form from the Department of Finance and Administration is not required if the instrument states: “This instrument is exempt from land transfer tax” or an essentially similar declaration. Although common in other states, there does not seem to be an obvious exemption from this tax in the state of Arkansas. Some states allow the transfer of ownership between family members without having to pay land transfer taxes, but it`s unclear if that`s the case for Arkansas residents. If you are trying to transfer property within the family, you should contact a local government office to see if an exemption would be possible.
If you are the seller, you can include the land transfer tax in the “cost base” of the property. (B) The Fellow or Authorized Representative shall affix the correct number of document stamps or document symbols to the front of the instrument so that any document stamp or document symbol in the records of the County Registrar is fully visible when the County Registrar records by photographically reproducing the instrument. Photocopy or other method of reproduction. (8) A document issued in the context of judicial or extrajudicial proceedings pursuant to §§ 18-50-101 et seq. for the purpose of asserting a security right in immovable property if the document transfers the property to the same person who wishes to assert the security right; Real estate transfer taxes apply to the transfer of ownership of mining rights. Land transfer tax is levied on any deed, deed or document granting, assigning, transferring or otherwise transferring land, a dwelling house or any other immovable property sold. The tax rate is $3.30 per actual consideration of $1,000 for transactions over $100. v) The amount of the full consideration for the transaction or a statement indicating the reason for the transfer of immovable property tax does not apply to the transaction, unless it is clear from the content of the document to be registered, without reference to other written or extrinsic evidence, that the deed is exempt from transfer of immovable property tax under one (1) of the provisions of § 26-60-102. In this case, the district clerk may recover the instrument without an affidavit. In any event, if the county registrar doubts the existence of the right to the exemption, he or she will require the affidavit or a certificate fully stating the reasons for the exemption to be submitted before registering the device with the device; and (1) (A) Explore the possibility of replacing or supplementing the paper affidavit of land transfer tax currently used as proof of compliance with land transfer tax with other proof of compliance, including, but not limited to, electronic affidavits with electronic signatures.
Hopefully, when you sell a property, you will make money from the sale. You may be charged a capital gains tax on the amount of money you have earned. The amount you spent on real estate transfer tax can be deducted from your profit so that your capital gains tax bill can be reduced. The land transfer tax imposed under this chapter does not apply to a transfer of the following points: b) (1) If the instrument of land transfer tax is intended for a transfer on which no tax is due but is not clearly exempt under § 26-60-102, the affidavit under paragraph (a) of this section must contain this fact and be signed by the beneficiary or his representative. whose address must be indicated in the affidavit and presented to the district clerk with the certificate of surrender […].