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.