What Kind Of Tranfer Tax The Seller Has To Pay?
I met with a seller on sunday. He has a house free and clear. He asks 95k for that little house. Needs total update. I was going left and right to trying to make it work and meet the seller's need. He wants some money out so he could invest in the stock and pay for closing cost. The question I have is if I buy it into a trust (make a number 45k in mortgage he carry back 45k) . How much transfer tax he has to pay? He pays tax on total 90k? If he is the trustee for a moment and does he need to pay tax on transfering to his own trust? What kind of the asset value they would go with, the current SEV or the new sale price? Thanks all. 
When/ If you take this deal...
You pay transfer tax on the amount that you purchase it for. Just because you come out of pocket with 45K and finance 45K doensn't make a hill of beans difference. The sales price is still 90K.
That's what get recorded, and what tax is paid on.
What's the house worth anyway? Why not have the seller refinance, get cash out and take this property subject to that financing. You can probable get him all the cash he wants this way. Just an idea.
Sam :-D
I would check with your local recorder's office to see what the transfer tax rules are in your corner of MI.
In IL, the rules are as samedwin mentions, except in cases of transferring properties subject to a mortgage--in those cases, only the equity is considered in the taxing equation.
One other thing I noticed while looking into this myself here in IL: each municipality has its own rules! I noticed one town's recording requirements and taxing method was different than the township I live in. I'm still investigating this to find out if I misread that or if it's true.
andy