The costs and fees associated with a Mississippi quitclaim deed can be significant for both grantor and grantee. Doing your research ahead of time, including speaking with a tax professional or accountant if needed, can make it easier for you to prepare financially for any challenges you may face.
Filing Fees
When you file a quitclaim deed with the chancery court clerk, you will need to pay a filing fee.
Miss. Code Ann. § 25.7.9 notes there is a $25 fee for filing a deed, with an additional $1 fee for each page over five. In addition, you will have to pay a $1 fee for the chancery court clerk to certify any copies of the deed that you may need for future use.
Oil and gas leases, mineral deeds, and royalty deeds may have their own transfer tax, including fees for subdivisions and sections.
Taxes
Real Estate Transfer Tax
Mississippi does not assign a real estate transfer tax for any property transaction.
US Gift Tax
The United States assigns a tax to gifts over a specific value each year. While there are some exemptions, real estate transactions are usually of substantial enough value that if the grantor gifts property to the grantee, it will be subject to a gift tax.
Before gifting real estate, consult a tax professional to make sure that you fully understand your tax obligations.
The state does not assign a separate gift tax, so you will not face additional state gift tax obligations.
Capital Gains Tax
The United States assigns a capital gains tax based on the amount the value of a piece of property increases between its purchase and sale. Real estate has the potential to increase substantially in value over time, so property owners often face a significant capital gains tax after selling a piece of property.
The IRS may offer some exemptions to the capital gains tax when the property owner has used that property as their primary residence, including residing there for at least two of the last five years.
Mississippi groups all earned income, including capital gains, under the same umbrella when considering income for the calendar year.
As a result, capital gains are taxed as regular income and will fall into the same brackets as the state’s income tax. Before selling a property, consult with a tax professional to ensure that you fully understand your tax obligations.
