Kevin transfers his rental property in Lowell to his adult daughter as a gift. The deed recites no monetary consideration. The property has a fair market value of $450,000. Under Massachusetts law, which statement best describes the deed excise tax obligation for this transaction?
Correct Answer
A) No deed excise tax is owed because this is a gift with no monetary consideration
Option A is correct on the facts stated. Massachusetts deeds excise applies to a conveyance where realty is sold for consideration above the statutory threshold. The Department of Revenue states that a bona fide gift made without consideration is not subject to the deeds excise, even though the property has fair market value. A family relationship alone is not the controlling fact; the stated bona fide gift with no consideration is.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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