Quitclaim deeds in Colorado are subject to recording fees, as well as state and federal taxes.
Recording Fees
You must pay recording fees when filing your quitclaim deed with the county clerk and recorder (Colo. Rev. Stat. § 30-1-103 and Colo. Rev. Stat. § 30-10-421):
- $10 for the first recorded page.
- $5 for each additional recorded page.
- $2 for taking an acknowledgment.
- $10 per sheet for recording documents larger than 8 ½ in. x 14 in.
- $1 filing surcharge.
- $3 filing surcharge for electronic filing.
Fees may vary depending on your situation, so check with your county clerk and recorder before you file.
Taxes
Transferring a property via a Colorado quitclaim deed may include tax payments to the state and federal governments, as follows:
1. Documentary Fee
The state imposes a transfer tax called a documentary fee for any deeds registered with the county clerk and recorder (Colo. Rev. Stat. § 39-13-102).
The grantee or buyer who receives the quitclaimed property pays the documentary fee. For deeds with consideration over $500, the fee is $0.01 for every $100 or fraction thereof.
You can pay the fee to the county clerk and recorder in the county where the property is located. If the property is located in multiple counties, you can pay it in one transaction. The county clerks and recorders of the counties will divide the fee based on the ratio of the property located in each county.
The following exemptions apply to documentary fees in real estate transfers, per Colo. Rev. Stat. § 39-13-104:
- Deeds conveyed to or from the US, State of Colorado, or any agency or political subdivision thereof.
- Deeds conveying property as a gift.
- Deeds confirming or correcting a previously recorded deed.
- Deeds conveying title to cemetery lots.
- Deeds transferring property for consideration less than $500.
- Deeds conveying future interest in the property.
- Deeds transferring title due to the grantor’s death.
2. U.S. Gift Tax (Form 709)
The state does not charge a gift tax. Federal gift tax for real estate transfers is imposed only on taxes over the exemption amount dictated by the Internal Revenue Service (IRS).
The amount changes annually, so check the IRS website before you file your annual income tax. The gift tax is paid by the grantor who gifted the property, using Form 709.
3. Capital Gains Tax
The state charges capital gains tax on taxable income from certain real estate sales (Colo. Rev. Stat. § 39-22-518). The flat capital gains tax is 4.55%, per Colo. Rev. Stat. § 39-22-627, but this rate may change at any time. The grantor who gained income from the real estate transfer is in charge of paying the tax.
Your transfer may also be subject to federal capital gains tax. Requirements and rates for state and federal capital gains taxes differ. Tax rates are also subject to change periodically, so check with a tax professional or real estate attorney when filing your annual income taxes.
