The conveyance of property via a quitclaim deed in Utah comes with costs and fees, including filing fees and taxes. Explore them below to learn what to expect as you file yours.
Filing Fees
The recording fee is $40 per instrument with no page limit (Utah Code § 17-21-18.5(1)(b)). If your document contains more than ten descriptions, expect to pay $2 for each additional description.
Taxes
1. Real Estate Transfer Tax
Utah doesn’t charge a tax when conveying real estate.
2. US Gift Tax (Form 709)
While Utah doesn’t impose a state-level gift tax, a conveyance via a quitclaim deed may be subject to US federal gift taxes. If the quitclaim deed went into effect without the grantee transferring money to the grantor, the grantor is required to file IRS Form 709 for the US gift tax.
However, there are some cases where the grantor won’t have to pay the gift tax. One exemption is if the grantor transferred the property to a spouse. The government also establishes annual exclusion limits. The limit is $18,000 for the 2024 tax year ($36,000 for married couples), so the grantor will be exempt from the tax if the gift is less than this value.
3. Capital Gains Tax
At the state level, Utah charges capital gains tax as ordinary income, meaning it’s subject to a rate of 4.65%.
Parties must pay applicable federal capital gains tax, too, which the IRS discusses in Topic no. 409. The rates will vary depending on whether the capital gains are short-term or long-term.
