Filing a Nevada quitclaim deed comes with a few associated costs, including recording fees, transfer tax, gift tax, and capital gains tax.
Recording Fees
Recording fees are established by Nev. Rev. Stat. § 247.305. However, the law allows each county to determine which fees to charge for recording a deed. The only required fee per Nevada statute is a $25 fee for recording the document. Check with your county recorder’s office to learn which other fees may apply.
For example, Washoe County charges $43 per document [1], while Clark County charges $42 [2].
Taxes
In addition to recording fees, a property transfer via quitclaim deed in Nevada may be subject to transfer taxes, US gift tax, and capital gains taxes.
1. Transfer Tax
Per Nev. Rev. Stat. § 375, transfer taxes are imposed on real estate transfers based on the county’s population and the property’s value.
Who Pays the Transfer Tax?
Both the grantor and grantee are liable for ensuring the transfer tax is paid. Typically, transfers involve an agreement between the parties as to who will handle the transfer tax.
Exemptions to Transfer Tax
Nev. Rev. Stat. § 375.090 lists numerous exemptions to transfer tax. Exemptions that could apply to a Nevada quitclaim deed include:
- Change of business identity or transfer between a company and subsidiary or affiliate
- Transfer to the US or any agency, department, instrumentality, or political subdivision thereof
- Transfer for a land sale contract or other recognition of true ownership status
- Transfer to a co-owner without financial consideration
- Transfer to a close relative
- Transfer to an ex-spouse due to a divorce decree
- Transfer to or from a trust without consideration with a certificate of trust
- Transfer to a business fully owned by the property owner
- Transfer upon the death of the grantor with a Death of Grantor Affidavit
- Transfer to an educational, university, or library foundation
- Transfer of property for bankruptcy, reorganization, or adjustment
Certain rules and regulations apply to exemptions, and not all exemptions are listed above. If you are not sure whether your Nevada quitclaim is exempt from transfer tax, speak with a tax professional or attorney familiar with real estate transactions in your county.
Tax Rates
For counties with populations greater than 700,000, the state assesses a transfer tax of $1.55 per $500 of property value. Property transfers in counties with populations below 700,000 owe a tax of $1.95 per $500. Each county can charge up to $0.10 more per $500 property value.
2. Federal Gift Tax (Form 709)
Nevada does not charge a gift tax, but the US government does for gifts over a certain value. The Internal Revenue Service (IRS) updates the exemption limit annually, so check their website [3] for the latest information before filing your income taxes for the year.
3. Capital Gains Tax
Nevada does not charge a capital gains tax. Individuals who make over a certain amount from a quitclaim real estate transfer may still be subject to capital gains tax on a federal level. Review capital gains tax information on the IRS website [4] to learn how to calculate and file capital gains tax for property transferred via a quitclaim deed in Nevada.
