Under MGL Chapter 64D, certain transfers of real property in Massachusetts are exempt from the deed excise tax. Which of the following transfers is NOT exempt from the Massachusetts deed excise tax?
Correct Answer
C) A transfer of property from a parent to an adult child for a purchase price of $450,000 in an arm's-length sale
A transfer from a parent to an adult child for $450,000 in an arm's-length sale is a standard taxable conveyance under MGL Chapter 64D. The fact that the parties are related does not create an exemption from the deed excise tax. Because the stated consideration is a substantial market-rate amount, the excise tax applies at the standard rate of $4.56 per $1,000 of the purchase price. Family relationship alone does not trigger an exemption.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
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