Posted by MonicaFL on 8/4/08 12:32pm
Msg #258423

Regarding QCD's - oops

Sorry, I hit the wrong button. Anyway, Here is what I found out about QCD's as far as Broward County Clerk of Court says: My nephews were left their father's house when he died. One nephew is in California and wants no part of the house - he wants to give it to his brother. (There is a mortgage on the house but the mortgage company has not requested that it be refinanced or paid in full) - The Clerk of Court told me that in order for my nephew in California to get his name off of the title he would have to file a QCD, pay $$ to file it AND (this is the kicker) someone would have to pay some taxes - now, the taxes would be as follows: There is $40,000 left on the note. She said you would divide that number by 2 (which then would make it $20,000) then the taxes would be figured at .70 on every $100. Now that seems like a real ripoff since the taxes are always paid on time - I just don't understand why he (or his brother) would have to pay additional taxes just to get a name off of the title. Can anyone enlighten me on this? Thanks.

Reply by MikeC/NY on 8/4/08 12:47pm
Msg #258425

Sounds like a real estate transfer tax, similar to what we have here in NY.

Reply by Kevin/Ct on 8/4/08 12:48pm
Msg #258426

There could be delinquent real estate taxes due. There could be a conveyance tax due. There could be succession/inheitance taxes due. It would be best for your brothers to consult with an attorney. One other matter...you should discuss the entire transaction with the mortgage lender. Most mortgages have an acceleration clause contained in them whereby a change in the status of the title holders may trigger the acceleration clause by which the full amount of the mortgage may become due.An attorney can advise you on all of these matters.

Reply by MonicaFL on 8/4/08 2:07pm
Msg #258459

I was the executor of the Will and had an attorney - in fact, he is the one who put the house in both of their names - because that is what was stipulated in my brother's will.

Reply by sue_pa on 8/4/08 2:31pm
Msg #258466

makes no sense for PA - of course FL may be different. One can refuse to accept that portion of their inheritance (it's been so long since worked I forget the 'real' word for that). Why did you sign the deed from the estate to your nephews if it wasn't what what they wanted?

Reply by MonicaFL on 8/5/08 8:19am
Msg #258560

I never signed a deed or anything concerning the house. The house was "transferred" by the Probate Judge in Broward County and in accordance with my brother's LW&T.

Reply by ColleenCA on 8/4/08 12:49pm
Msg #258428

Re: Check with an attorney

but, I know in California if you file for title transfer within 6 months of the parents death, the parent to child tax transfer takes effect and the child does not have to pay the reassessed value. The tax liability stays the same as before the parent passed. But, again, check with an attorney to cover all bases and just make sure all paperwork is filed within the correct time frame.

Reply by BobbiCT on 8/4/08 2:34pm
Msg #258467

Florida PROFESSIONAL real estate attorney ...

For this current transfer, you need help from a FLORIDA attorney whose practice area is residential real property transfers ... and provide that attorney with a copy of the title search performed when the real property was in your father's estate. To a Connecticut native, there are some "funky" Florida real property transfer taxes, assessment, school and other tax issues when conveying Florida real property.

I AM not an attorney, not giving legal advice. During day we always work with one-to-two attorneys in Florida familiar with both estate and real property issues. It sounds like the mortgage transfer tax; i.e., I believe there is a real property transfer tax based on the outstanding principal balance of any unreleased mortgages due the County. Lenders don't care; they don't pay it. This tax has nothing to due with taxes payable to the County, school, and other taxing districts - it is because you are transferring property encumbered by a mortgage. I THINK this is how it would; could be dead wrong so don't take advice or legal counsel from the internet.

Reply by PAW on 8/4/08 8:46pm
Msg #258515

Re: Florida PROFESSIONAL real estate attorney ...

You're on the right track Bobbi. In Florida, we have "doc stamps".

[quote]
Documentary stamp tax (“doc stamps”) are important for Florida asset protection planning because this tax is potentially assessed whenever a person conveys property titled in his individual name into an asset protection entity wholly owned by the same transferor. The Supreme Court held that no doc stamps are chargeable on the transfer of real estate owned free and clear to a wholly owned transferee with no monetary consideration. Where the property transferred is subject to a mortgage loan, doc stamps must be paid on the amount of the mortgage balance at time of transfer.
[/quote]
Source: Jonathan Alper, asset protection and bankruptcy lawyer, Orlando, FL

The FL DOR (Dept of Revenue) states: The tax rate for documents that transfer an interest in real property is $.70 per $100 (or portion thereof) of the total consideration paid, or to be paid, for the transfer. An exception is Miami-Dade County, where the rate is $.60 per $100 (or portion thereof) when the property is a single-family residence. If the Miami-Dade property is anything other than a single-family residence, the tax rate is $.60 plus $.45 surtax per $100 (or portion thereof). Further, the DOR has issued a statement that a QCD, for the purposes of the doc stamps, does convey ownership, even though there are many dissenting opinions about QCD's and their effect on property ownership. The "consideration" includes items such as an outstanding mortgage balance. (Source: Florida Dept of Revenue - http://dor.myflorida.com/dor/taxes/doc_stamp.html)

Reply by desktopfull on 8/4/08 8:51pm
Msg #258517

They recently changed the law in Florida concerning QCD's. You used to have to file a DR219 when you recorded the QCD to pay the doc stamps, but they stopped that and are now using a new procedure but I don't fully understand the procedure yet. I am really surprised that the Clerk of the Court gave you the information that she did, because they aren't allowed to give any advice ever here in Orange County. The best thing to do is contact a real estate attorney and explain that the brother is giving is half of the property to his brother, he may have a more reasonable solution for the situation.

Reply by PAW on 8/5/08 8:40am
Msg #258561

DR-219 no longer required in FL

I am assuming that this is what you are referring to. The following information was provided by David Goldman, Esq., a Florida estate planning attorney.

Florida DR-219 Form is Repealed as of 06/1/2008

Beginning June 1, 2008:

•The requirement to complete and file Form DR-219 is repealed.
•The Department of Revenue will not process DR-219 forms received.
•Destroy all blank DR-219 forms in your inventory.

The repeal of the requirement to complete and file Form DR-219 does not impact documentary stamp tax payment and filing requirements. Documentary stamp tax continues to be due on all documents that convey an interest in Florida real property. The tax must be paid at the time of recording with the Clerks of Court or County Recorders if the document is recorded prior to the 20th day of the month following the month the document is delivered. The tax must be paid directly to the Department of Revenue by the 20th day of the month following the month the document is delivered if the document is not recorded before. Delinquent payment of tax will continue to be subject to penalty and interest charges.