Filing a quitclaim deed in Florida can come with considerable fees. Both the grantor (the party who currently owns the property) and the grantee (the party taking possession of the property) can face financial implications with the property transfer, so preparing ahead of time can avoid any surprises and make it easier to manage the process.
Filing Fees
- The cost to file the deed is set by each county. Do your research based on your location.
- You can expect an average $10 fee for filing a simple one-page deed. Additional pages filed with it will increase that cost.
Taxes
Using a quitclaim deed in Florida may bring about several taxes:
1. Documentary Transfer Tax
The state charges a transfer tax, also known as a Documentary Stamp Tax, for filing a quitclaim deed or any other type of real estate transfer. Typically, the tax rate is $.70 per $100 of the total consideration paid for the property.
However, in Miami-Dade County, the cost is $.60 per $100 of consideration for a single-family residence and $.60 per $100 plus a $.45 surtax per $100 for properties other than single-family residences, including multi-family properties and commercial properties.
Who Pays the Transfer Tax?
- The Documentary Stamp Tax is typically paid by the grantor.
Exemptions to Transfer Tax
Fla. Stat. § 201 lays out several potential exemptions to the state real estate transfer tax, including:
- Quitclaim deeds intended to correct an error in a previous title or deed.
- Conveyances between parties otherwise exempt from paying taxes.
- Release of a mortgage.
- Gifts of unencumbered property.
- Property transfers with only nominal consideration.
- In some cases, transferring a marital home between spouses.
Consult an accountant or tax professional if you have questions about whether your transfer is exempt.
2. U.S. Gift Tax (Form 709)
The federal gift tax is assessed on gifts of high monetary value. While there are some exemptions for gifts between relatives, real estate transactions often have enough value to be above that threshold. As a result, the IRS may assess a gift tax based on the assessed value of the property.
Typically, this tax is paid by the grantor; however, the grantor and grantee may arrange for the grantee to pay for the property. Florida does not impose a separate gift tax.
3. Capital Gains Tax
The IRS assesses a capital gains tax when the value of a piece of property, including real estate, appreciates significantly between the time the owner purchases the property and sells it. Often, real estate appreciates significantly in value, which means that the current owner can face significant capital gains taxes upon the sale.
Gifting the property can alleviate the need to pay this tax, but it means that the current owner will not receive a fair profit on the sale, and it may trigger the gift tax. Florida does not impose a separate capital gains tax.
