When filing a Quitclaim Deed what is the exemption code used when there is no consideration?
Full Question:
When filing a Quitclaim Deed what is the exemption code used when there is no codsideration involved?
03/16/2009 |
Category: Real Property ยป Deeds |
State: Virginia |
#15645
Answer:
Often a gift deed is used as a deed for property transferred without consideration. Codes used in recording deeds vary by local recorder's office. I suggest contacting the land recorders office at the following link:
http://www.fauquiercounty.gov/government/departments/circuitcourt/Please see the following VA statutes to determine applicability:
§ 58.1-806. Deeds of partition; transfers pursuant to decree of divorce
or separate maintenance, etc. —
A. The tax on the recordation of any deed of partition, or any
combination of deeds simultaneously executed and having the effect of a
deed of partition, among joint tenants, tenants in common or coparceners
shall be fifty cents per deed.
B. The tax on any deed transferring property pursuant to a decree of
divorce or of separate maintenance or pursuant to a written instrument
incident to such divorce or separation, shall be fifty cents per deed.
§ 58.1-810. What other deeds not taxable. —
When the tax has been paid at the time of the recordation of the
original deed, no additional recordation tax shall be required for
admitting to record:
1. A deed of confirmation;
2. A deed of correction;
3. A deed to which a husband and wife are the only parties;
4. A deed arising out of a contract to purchase real estate; if the tax
already paid is less than a proper tax based upon the full amount of
consideration or actual value of the property involved in the
transaction, an additional tax shall be paid based on the difference
between the full amount of such consideration or actual value and the
amount on which the tax has been paid; or
5. A notice of assignment of a note secured by a deed of trust or
mortgage.
§ 58.1-811. Exemptions. —
A. The taxes imposed by §§ 58.1-801 and 58.1-807 shall
not apply to any deed conveying real estate or lease of real
estate:
1. To an incorporated college or other incorporated
institution of learning not conducted for profit, where such
real estate is intended to be used for educational purposes
and not as a source of revenue or profit;
2. To an incorporated church or religious body or to the
trustee or trustees of any church or religious body, or a
corporation mentioned in § 57-16.1, where such real estate
is intended to be used exclusively for religious purposes,
or for the residence of the minister of any such church or
religious body;
3. To the United States, the Commonwealth, or to any county,
city, town, district or other political subdivision of the
Commonwealth;
4. To the Virginia Division of the United Daughters of the
Confederacy;
5. To any nonstock corporation organized exclusively for the
purpose of owning or operating a hospital or hospitals not
for pecuniary profit;
6. To a corporation upon its organization by persons in
control of the corporation in a transaction which qualifies
for nonrecognition of gain or loss pursuant to § 351 of the
Internal Revenue Code as it exists at the time of the
conveyance;
7. From a corporation to its stockholders upon complete or
partial liquidation of the corporation in a transaction
which qualifies for income tax treatment pursuant to § 331,
332, 333 or 337 of the Internal Revenue Code as it exists at
the time of liquidation;
8. To the surviving or new corporation, partnership, limited
partnership, business trust, or limited liability company
upon a merger or consolidation to which two or more such
entities are parties, or in a reorganization within the
meaning of § 368(a)(1)(C) and (F) of the Internal Revenue
Code as amended;
9. To a subsidiary corporation from its parent corporation,
or from a subsidiary corporation to a parent corporation, if
the transaction qualifies for nonrecognition of gain or loss
under the Internal Revenue Code as amended;
10. To a partnership or limited liability company, when the
grantors are entitled to receive not less than 50 percent of
the profits and surplus of such partnership or limited
liability company; provided that the transfer to a limited
liability company is not a precursor to a transfer of
control of the assets of the company to avoid recordation
taxes;
11. From a partnership or limited liability company, when
the grantees are entitled to receive not less
than 50 percent of the profits and surplus of such
partnership or limited liability company; provided that the
transfer from a limited liability company is not subsequent
to a transfer of control of the assets of the company to
avoid recordation taxes;
12. To trustees of a revocable inter vivos trust, when the
grantors in the deed and the beneficiaries of the trust are
the same persons, regardless of whether other beneficiaries
may also be named in the trust instrument, when no
consideration has passed between the grantor and the
beneficiaries; and to the original beneficiaries of a trust
from the trustees holding title under a deed in trust;
13. When the grantor is the personal representative of a
decedent's estate or trustee under a will or inter vivos
trust of which the decedent was the settlor, other than a
security trust defined in § 55-58.1, and the sole purpose of
such transfer is to comply with a devise or bequest in the
decedent's will or to transfer title to one or more
beneficiaries after the death of the settlor in accordance
with a dispositive provision in the trust instrument; or
14. When the grantor is an organization exempt from taxation
under § 501(c)(3) of the Internal Revenue Code that is
organized and operated primarily to acquire land and
purchase materials to erect or rehabilitate low-cost homes
on such land, which homes are sold at cost to persons who
otherwise would be unable to afford to buy a home through
conventional means, located in Amherst County or the City of
Lynchburg.
B. The taxes imposed by §§ 58.1-803 and 58.1-804 shall not
apply to any deed of trust or mortgage:
1. Given by an incorporated college or other incorporated
institution of learning not conducted for profit;
2. Given by the trustee or trustees of a church or religious
body or given by an incorporated church or religious body,
or given by a corporation mentioned in § 57-16.1;
3. Given by any nonstock corporation organized exclusively
for the purpose of owning and/or operating a hospital or
hospitals not for pecuniary profit;
4. Given by any local governmental entity or political
subdivision of the Commonwealth to secure a debt payable to
any other local governmental entity or political
subdivision; or
5. Securing a loan made by an organization described in
subdivision 14 of subsection A of this section.
C. The tax imposed by § 58.1-802 and the fees imposed by
§ 58.1-802.1 shall not apply to any:
1. Transaction described in subdivisions 6 through 13 of
subsection A of this section;
2. Instrument or writing given to secure a debt;
3. Deed conveying real estate from an incorporated college
or other incorporated institution of learning not conducted
for profit;
4. Deed conveying real estate from the United States, the
Commonwealth or any county, city, town, district or other
political subdivision thereof;
5. Conveyance of real estate to the Commonwealth or any
county, city, town, district or other political
subdivision thereof, if such political unit is required by
law to reimburse the parties taxable pursuant to § 58.1-802
or subject to the fee under § 58.1-802.1; or
6. Deed conveying real estate from the trustee or trustees
of a church or religious body or from an incorporated church
or religious body, or from a corporation mentioned in
§ 57-16.1.
D. No recordation tax shall be required for the recordation
of any deed of gift between a grantor or grantors and a
grantee or grantees when no consideration has passed between
the parties. Such deed shall state therein that it is a deed
of gift.
E. The tax imposed by § 58.1-807 shall not apply to any
lease to the United States, the Commonwealth, or any county,
city, town, district or other political subdivision of the
Commonwealth.
F. The taxes and fees imposed by §§ 58.1-801, 58.1-802,
58.1-802.1, 58.1-807, 58.1-808 and 58.1-814 shall not apply
to (i) any deed of gift conveying real estate or any
interest therein to The Nature Conservancy or (ii) any lease
of real property or any interest therein to The Nature
Conservancy, where such deed of gift or lease of real estate
is intended to be used exclusively for the purpose of
preserving wilderness, natural or open space areas.
G. The words "trustee" or "trustees," as used in
subdivision 2 of subsection A, subdivision 2 of
subsection B, and subdivision 6 of subsection C, include the
trustees mentioned in § 57-8 and the ecclesiastical officers
mentioned in § 57-16.
H. No recordation tax levied pursuant to this chapter shall
be levied on the release of a contractual right, if the
release is contained within a single deed that performs more
than one function, and at least one of the other functions
performed by the deed is subject to the recordation tax.
I. No recordation tax levied pursuant to this chapter shall
be levied on a deed, lease, easement, release, or other
document recorded in connection with a concession pursuant
to the Public-Private Transportation Act of 1995 (§ 56-556
et seq.) or similar federal law.