Before filing your quitclaim deed, make sure you thoroughly review both the fees associated with filing the deed and the potential tax implications faced by both grantor and grantee. You will need to be prepared to pay any needed fees at the time of filing as well as managing the taxes as they come due.
Filing Fees
Ohio charges a base filing fee of $34 for the first page of a document. If you have additional pages, you will need to pay an extra $8 for each page.
Taxes
Both the grantor and the grantee can face potential tax implications related to the transfer of property. Working with a tax professional will ensure that both parties are familiar with their obligations.
Property Conveyance Fees
Ohio lays out real property conveyance fees for the transfer of real estate. The state charges $1 for each $1000 of property value when the property is sold or transferred. Ohio counties have the right to add an extra conveyance fee or tax of up to $3 per $1000 of property value, so you should research the county where the property is located to make sure you are familiar with local fees for your property transfer.
Who Pays the Conveyance Fee?
The grantor, or the former owner of the property, is typically responsible for paying the conveyance fee on the property.
Exemptions to the Conveyance Fee
Ohio lays out several exemptions to transfer taxes or conveyance fees. The grantor should consult a tax professional to ensure that they fully understand their tax obligations, especially if they believe that they may fall under an exemption. Ohio property conveyance fee exemptions include:
- Sales to or from the US government or Ohio state government
- Gifts from one spouse to another
- Gifts from parents to their children or the child’s spouse
- Survivorship transfers
- Property tales that are intended to release security for a debt or delinquent taxes
- Sales or transfers to or from nonprofit organizations
- Sales or transfers without significant monetary value in consideration for the property, when the transaction is not a gift
- Easement or right of way transfers with a value of less than $1000
- Transfers into or out of trusts
A careful evaluation of these exemptions can help both grantor and grantee determine whether they may be able to avoid the conveyance fees charged by Ohio.
US Gift Tax
The United States gift tax is a tax assessed when a gift of significant monetary value is given. Gift taxes often apply in cases of real estate transfers, including those governed by a quitclaim deed, when the real estate is given as a gift. This includes cases of real estate gifts between family members. Gift taxes are often paid by the grantor, but the parties involved can make arrangements to have the gift tax paid by the grantee.
Ohio does not assess its own gift tax, so only the federal gift tax requirements will apply to your property transfer.
Capital Gains Tax
The United States capital gains tax assesses a tax on the increased value of a substantial investment, including an investment in real estate, when that property is sold. Real estate tends to grow in value over time, which means that in many cases, it is worth much more on sale than it was when it was originally purchased.
The capital gains tax includes some exemptions for a person or family’s primary residence, as long as they lived in that house for at least two of the last five years or moved because of a government assignment.
Ohio assesses its own capital gains tax, which the grantor should take into account when deciding to sell or transfer a property.
