Certain tax-exempt transfers
In Nevada, a real estate transfer tax is due upon registration of most deeds transferring real estate between parties upon payment, called consideration, of at least $100. This tax is assessed at a statutory rate, but counties may impose an additional transfer tax. The county recorder in the county where the property is located is the agency responsible for imposing and collecting transfer tax at the time the transfer is registered.
However, Nevada law includes several categories of transfers that are exempt from paying transfer tax.
Deeds of transfer of ownership to state and federal government agencies are exempt from transfer tax as well as deeds of transfer to an educational institution or academic foundation.
Acts intended solely to record a change in the identity, form or location of an organization, such as acts between affiliated companies having identical common property, are exempt from transfer duty. Similarly, deeds of transfer of ownership acknowledging the true state of ownership of the property are also exempt from transfer duties.
Acts of transfer from co-owner to co-owner, such as transfers between co-owners and co-owners, as long as they are without consideration (payment), are exempt from transfer duty. Similarly, are exempted from transfer duties acts of transmission to a relative, therefore between persons related to the first degree of consanguinity or linear affinity, as well as acts of transmission to a legal person if the settlor holds 100% of the organization to which the transport is made.
The transfer of property between ex-spouses pursuant to a divorce decree, the deeds of transfer of property under a plan of receivership or sequestration and the deeds of transfer necessary for the execution of an order of the Securities and Exchange Commission are also exempt from the transfer. tax. A divorce judgment or a copy of an order must be attached to the deed to claim the exemption.
The death certificate, therefore the transfer of a building by notarial deed taking effect on the death of the settlor, is also exempt from transfer duties.
In estate planning, a very important exemption includes a transfer of title to or from a trust if the transfer is for no consideration. In order to claim this exemption, a certificate of trust must be present at the time of transfer and registration. The Certificate of Trust will not be registered but must be presented to the County Clerk at the time registration is requested.
The declaration of value is a form that must accompany the deed of transfer. This form provides information regarding the transferred property and the information provided is used to calculate the transfer tax.
At the time of registration of the deed, the County Recorder’s office reviews requests for exemption and decides whether the exemption is applicable and accepted. If tax is due, it is collected when the transfer of real estate is registered, and then payment is forwarded to the State of Nevada. The licensor and the licensee are jointly and severally liable for the payment of the tax.