Back To It….
Summer is here and my vacation plans last week took me away from my normal schedule. I’m back with part 1 of a 3 part series on taxes. I believe our good friend Ben Franklin was correct with connecting the certainty of death with the certainty of taxes. Its inevitable, and when you are buying and selling a home, taxes should certainly be a topic you consider when making decisions.
Additional Cost of Selling
This 3 part series is going to talk about the taxes you may see when you sell a property. Every penny exchanged s calculated and documented in the closing disclosure (EP19). If you are a client of mine we will also talk about these fees as they impact your bottom line when we review the Seller Estimated Net Sheet (EP47) during my listing presentation. I have linked 2 previous blog entries that go in detail on these.
In NC Land Transfer tax is a 1% tax sent to the county when you sell your property. Other areas may refer to it as a Deed Tax or Stamp Tax and the percentages can be different, but in essence that are likely the same concept. In some areas you may also be responsible for City, State or Federal Transfer taxes.
Real estate is different from state to state and region to region. Your real estate agent should be aware of what is standard and typical in your market, and you should rely on their knowledge and expertise to guide you. Be sure you are choosing an agent who understands the market they are working. If an agent is licensed in both states makes sure they are aware of these fees and how they may differ in the 2 states. A lack of knowledge on the subject could really cost you in the end.
How are they used by the local government
Each time a property is sold, 1% of the sell is taken from the sellers proceeds and used to pay the transfer tax to the county where the property is located. Funds generated from these taxes are used by the county for capital expenditures such as county offices, jails, and school buildings.
More on the way
In the next 2 entries I’m going to be discussing State Excise Tax and County Property Taxes. If you like the videos and blog post, I hope you will share them with your friends and family who may need that info. There are lots more of them on my web site at chriswhitehurst.com or you can head over to my YouTube channel. If you want to interact with me on social media you can find me most often on Facebook with an occasional sighting on Instagram (but I’m trying to do more there!)
Until next time, Welcome Home!
Rose and Womble
252 312 2263