Do You Pay Real Estate Transfer Tax On The Assignment Of Beneficial Interest
When someone transfer the beneficial interest in a landtrust to someone else are they subject to real estate property tax. Or is the assignment of beneficial interest seen as personal property and subject to intangible personal property tax instead.
My view of this is that landtrust fall under the uniform commercial code and real property law.
Just closed one today. NYC Transfer tax return specifically states that an economic interest in real property are taxable and the ownership of a beneficial interest in a trust which owns or leases real property is considered an economic interest in real property.
The middle person ended up paying transfer tax twice - upon the transfer of the beneficial interest and the end sale.
Title company has no bearing here - read the instructions on the NYC RPT. The transfer of beneficial ownership is an economic interest in real property plain and simple.
NY considers it to be real property. This varies state to state and has nothing to do with inexperience of which I am not.
"insurance is such a racket."
Perhaps you are beginning to understand why the global insurance industry is about three times the size of the global petroleum industry...
Chris