When recording a real estate transfer or deed modification using a Georgia quitclaim deed, you may incur recording fees and state and federal taxes.
Filing Fees
- Per Ga. Code § 15-6-60, the Clerks of the Superior Court can assess fees for recording deeds and other real estate documents.
- Unless otherwise agreed, the grantor is typically responsible for submitting the deed and paying any associated fees and taxes, per Ga. Code § 44-5-47.
- The recording fee for a quitclaim deed is usually a flat $25 fee, as established under Ga. Code § 15-6-77.
Taxes
Quitclaim deeds may be subject to state transfer tax, as well as gift and capital gains taxes:
1. Transfer Tax
The Clerk of the Superior Court assesses state transfer tax when recording the deed.
Who Pays the Transfer Tax?
- According to Ga. Code § 48-6-3, transfer tax in the state is paid by the grantor registering the deed unless otherwise agreed by the parties involved.
Exemptions to Transfer Tax
Transfer tax does not apply to properties transferred with consideration less than $100. Other exemptions are listed under Ga. Code § 48-6-2 and include:
- Gifted deeds.
- Deeds securing a debt.
- Deeds to or from US or state of Georgia government entities.
- Transfers between spouses due to divorce.
- Deeds in lieu of foreclosure.
- Deeds transferring real estate to or from a fiduciary without valuable consideration.
- Deeds transferring real estate to a joint tenant or tenant in common without consideration.
- Deeds transferring property to a business owned by the grantor.
Tax Rates
- Per Ga. Code § 48-6-1, the transfer tax rate is $1 for the first $1,000 of actual consideration and $0.10 for each additional $100 or fraction thereof.
2. U.S. Gift Tax (Form 709)
- The state does not charge gift tax. If you gifted property using a quitclaim deed, and the property value exceeds the annual exemption amount established by the Internal Revenue Service (IRS), you may owe gift tax.
- The IRS website can help determine whether you owe gift tax for the property transfer. If so, submit Form 709 with your annual income tax return.
3. Capital Gains Tax
- The state may assess a capital gains tax if you used a quitclaim deed to sell property for a profit.
- Georgia income tax rates for capital gains are established under Ga. R&R § 560-7-7. The rates are based on the amount of profit you earned from the sale of the real estate property and how long you owned or inhabited the property.
- In addition, the IRS may assess a capital gains tax, depending on how much you made from the property sale, what your annual income was for that year, and how long you owned and lived in the conveyed property.
