When transferring property in Nebraska, it’s important to be aware of the various fees involved in the process. Both the seller and the buyer may encounter tax implications on top of the charges assessed for the property itself. If you have any questions about your financial responsibilities, it’s advisable to consult with a tax professional.
Filing Fees
Neb. Rev. Stat. § 33-109 establishes a standard fee for recording a quitclaim deed. The grantor pays the recording fee when submitting the quitclaim deed to the register of deeds at the appropriate county clerk’s office. Applicable fees are as follows:
- $10.00 for the first page
- $6.00 for each subsequent page
- $1.50 per page for a certified copy of the quitclaim deed
Taxes
If you transfer real estate in Nebraska using a quitclaim deed, you may be subject to both state and federal taxes.
1. Documentary Stamp Tax
The Nebraska Department of Revenue charges a documentary stamp tax per Neb. Rev. Stat. § 76-901. The tax is calculated based on the value of the real estate property as recorded by the county assessor at the time of the transfer.
Who Pays the Documentary Stamp Tax?
Per Nebraska quitclaim deed laws, the grantor, or seller, conveying the property pays the documentary stamp tax.
Exemptions to Documentary Stamp Tax
Nebraska grants documentary stamp tax exemptions for the following circumstances:
- Deeds that release or secure a debt or other obligation
- Deeds that confirm, correct, modify, or supplement a previously recorded deed without additional consideration, extension, or limitation of the existing title or interest
- Deeds between spouses, ex-spouses, or a parent and child
- Deeds to or from a business owned by the family
- Tax deeds
- Deeds dividing land between joint tenants or tenants in common
- Deeds for business consolidation, sales, or mergers
- Deeds between a parent corporation and its subsidiary
- Deeds for cemetery plots
- Deeds for mineral rights
- Deeds executed per court decrees, like in a divorce, bankruptcy, or an involuntary grant
- Deeds for land contracts
- Deeds transferring interest from a personal representative to the heir of an estate
- Transfer on death deeds
- Deeds transferring property to a trust
- Deeds conveying property from a trustee to the trust’s beneficiary
Depending on your situation, your quitclaim deed could be exempt. However, the laws governing documentary stamp tax and exemptions are complicated. Review Neb. Rev. Stat. § 76-902 and 350 Neb. Admin. Code § 52-003 to see all exemptions. Consider consulting with a real estate law expert before transferring property using a Nebraska quitclaim deed.
Tax Rates
The tax rate is $2.25 per every $1000 of value or fraction thereof. See the Nebraska documentary stamp tax computation table (1) for quick reference. Taxation amounts change periodically, so check with your county clerk or the Nebraska Department of Revenue to obtain the latest information before you file your quitclaim deed.
2. Federal Gift Tax (Form 709)
When you use a Nebraska quitclaim deed to transfer property to a grantee, you, as the grantor, may owe federal gift tax. Gifts up to a certain value are excluded from this tax, but the value changes frequently. When you file your income taxes, you can use Form 709 to calculate and pay your gift tax.
3. Federal and State Capital Gains Tax
A property conveyance via quitclaim deed in Nebraska may also be subject to capital gains tax on both a state and federal level. Nebraska’s capital gains tax rates are based on a percentage of the profit you gained from selling the home.
The Internal Revenue Service (IRS) establishes exclusions for capital gains up to a certain value. The exclusions change, so check current IRS capital gains rates and exclusions before you file your annual taxes.
According to Neb. Admin. Code § 22, Nebraska’s capital gains tax applies regardless of IRS requirements. However, the laws governing capital gains on Nebraska properties can vary based on the following considerations:
- Whether the property was your primary residence
- How long you owned the home before you sold it
- Whether you lived in the residence for a specific period before selling
- If you claimed a capital gains tax deduction on a different home within the past two years
Consider consulting with a tax professional or attorney familiar with Nebraska quitclaim deeds to avoid complications when filing your taxes.
