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Transfer Tax on Quitclaim
Thanks. In our case I don't think there is any value transferred since
technically the Trustee never received any interest in the property. But
just for the sake of completeness, who gets paid the transfer tax, the
recorder's office upon recording?
Jon Hayes
Sent: Wednesday, January 21, 2009 8:17 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Re: Transfer Tax on Quitclaim
$1.10 per $1,000 of "value transferred" for most cities in Cal. See
http://www.californiacityfinance.com/Pr ... xRates.pdf. and RTC
11911 (or around in there).
wrote:
>
> consideration $0
> tax $1.10 / $100,000 value
>
> David A. Tilem
> Certified Bankruptcy Specialist*
> Law Offices of David A. Tilem (a debt relief agency)
> 206 N. Jackson Street, #201, Glendale, CA 91206
> Tel: 818-507-6000 Fax: 818-507-6800
>
> * Bankruptcy specialist cert. by State Bar of CA Bd of Legal
> Specialization.
> Business bankruptcy specialist cert. by Amer. Bd. of
Certification
> -----Original Message-----
Behalf Of
> Mark JM
> Sent: Friday, January 16, 2009 3:38 PM
> To: cdcbaa@yahoogroups.com
> Subject: [cdcbaa] Transfer Tax on Quitclaim
>
>
>
>
> I just settled an adversary on a fraudulent transfer claim
representing the
> defendant. We (I) need to prepare a quitclaim deed transferring
the
> Chapter 7 Trustee's interest (to the extent the Trustee had any
interest) in
> the real property in question. I'm not really sure the estate even
had an
> interest because title is not in the debtors' names, but in their
son (my
> client). The Trustee put a lis pendens on the property, and is
removing
> that.
>
> There is that section on the quitclaim deed that asks for the
amount of the
> documentary transfer tax, which usually is avoided in the event of a
> bonafide gift under R&T code 11911. However, if we settled with the
> Trustee, it's not a gift. So does anyone know if and how to
calculate the
> transfer tax, to whom it gets paid, etc?
>
> Anyone deal with this before?
>
> *************************
>
> Mark J. Markus
>
> Law Office of Mark J. Markus
>
> 11684 Ventura Blvd. PMB #403
>
> Studio City, CA 91604-2652
>
> (818)509-1173 (818)509-1460 (fax)
>
> Toll Free: 1-866-576-6275
>
> web: http://www.bklaw.com/
>
> This Firm is a Qualified Federal Debt Relief Agency (see what this
means at
> http://bklaw.com/bankruptcy-blog/2008/0 ... -agencies-
definition/)
>
> ________________________________________________
>
> NOTICE: This Electronic Message contains information from the law
office of
> Mark J. Markus that may be privileged. The information is intended
for the
> use of the addressee only. If you are not the addressee, note that
any
> disclosure, copy, distribution or use of the contents of this
message is
> prohibited.
>
> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements
imposed by
> the IRS, we inform you that any U.S. tax advice contained in this
> communication (or in any attachment) is not intended or written to
be used,
> and cannot be used, for the purpose of (i) avoiding penalties under
the
> Internal Revenue Code or (ii) promoting, marketing or recommending
to
> another party any transaction or matter addressed in this
communication.
>
Yahoo! Groups Links
The post was migrated from Yahoo.
$1.10 per $1,000 of "value transferred" for most cities in Cal. See
http://www.californiacityfinance.com/Pr ... xRates.pdf. and RTC
11911 (or around in there).
wrote:
>
> consideration $0
> tax $1.10 / $100,000 value
>
> David A. Tilem
> Certified Bankruptcy Specialist*
> Law Offices of David A. Tilem (a debt relief agency)
> 206 N. Jackson Street, #201, Glendale, CA 91206
> Tel: 818-507-6000 Fax: 818-507-6800
>
> * Bankruptcy specialist cert. by State Bar of CA Bd of Legal
> Specialization.
> Business bankruptcy specialist cert. by Amer. Bd. of
Certification
> -----Original Message-----
Behalf Of
> Mark JM
> Sent: Friday, January 16, 2009 3:38 PM
> To: cdcbaa@yahoogroups.com
> Subject: [cdcbaa] Transfer Tax on Quitclaim
>
>
>
>
> I just settled an adversary on a fraudulent transfer claim
representing the
> defendant. We (I) need to prepare a quitclaim deed transferring
the
> Chapter 7 Trustee's interest (to the extent the Trustee had any
interest) in
> the real property in question. I'm not really sure the estate even
had an
> interest because title is not in the debtors' names, but in their
son (my
> client). The Trustee put a lis pendens on the property, and is
removing
> that.
>
> There is that section on the quitclaim deed that asks for the
amount of the
> documentary transfer tax, which usually is avoided in the event of a
> bonafide gift under R&T code 11911. However, if we settled with the
> Trustee, it's not a gift. So does anyone know if and how to
calculate the
> transfer tax, to whom it gets paid, etc?
>
> Anyone deal with this before?
>
> *************************
>
> Mark J. Markus
>
> Law Office of Mark J. Markus
>
> 11684 Ventura Blvd. PMB #403
>
> Studio City, CA 91604-2652
>
> (818)509-1173 (818)509-1460 (fax)
>
> Toll Free: 1-866-576-6275
>
> web: http://www.bklaw.com/
>
> This Firm is a Qualified Federal Debt Relief Agency (see what this
means at
> http://bklaw.com/bankruptcy-blog/2008/0 ... -agencies-
definition/)
>
> ________________________________________________
>
> NOTICE: This Electronic Message contains information from the law
office of
> Mark J. Markus that may be privileged. The information is intended
for the
> use of the addressee only. If you are not the addressee, note that
any
> disclosure, copy, distribution or use of the contents of this
message is
> prohibited.
>
> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements
imposed by
> the IRS, we inform you that any U.S. tax advice contained in this
> communication (or in any attachment) is not intended or written to
be used,
> and cannot be used, for the purpose of (i) avoiding penalties under
the
> Internal Revenue Code or (ii) promoting, marketing or recommending
to
> another party any transaction or matter addressed in this
communication.
>
The post was migrated from Yahoo.
How are you characterizing the transaction for income tax purposes? Does your characterization dovetail with how the trustee characterizes his end of the deal? There is a lot of cases on tax characterization of settlement issues, from the USSCT down. Likely how you deal with it for income tax purposes will contribute to your characterization for transfer tax purposes. I just came into a case involving a settlement involving a transfer of a dozen properties in settlement which requires an evaluation of federal estate tax and corporate and individual and trust income taxes, including taking into account the age of one of the settling parties because of the step up in basis upon death, and the effect on a trust which is half revocable and half not revocable. Transfer taxes are to be considered but are the smallest problem. No small problem either is the fact that the two antagonists who spent $2,000,000 fighting with each other are father and son and partners.
Recall my story a couple months ago about the trustee who litigated a fraudulent conveyance action at a cost of $600,000 in fees to the estate and shortly after being successful moved to abandon the properties he recovered.
The post was migrated from Yahoo.
consideration $0
tax $1.10 / $100,000 value
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Mark JM
Sent: Friday, January 16, 2009 3:38 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Transfer Tax on Quitclaim
I just settled an adversary on a fraudulent transfer claim representing the
defendant. We (I) need to prepare a quitclaim deed transferring the
Chapter 7 Trustees interest (to the extent the Trustee had any interest) in
the real property in question. Im not really sure the estate even had an
interest because title is not in the debtors names, but in their son (my
client). The Trustee put a lis pendens on the property, and is removing
that.
There is that section on the quitclaim deed that asks for the amount of the
documentary transfer tax, which usually is avoided in the event of a
bonafide gift under R&T code 11911. However, if we settled with the
Trustee, its not a gift. So does anyone know if and how to calculate the
transfer tax, to whom it gets paid, etc?
Anyone deal with this before?
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
Toll Free: 1-866-576-6275
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this means at
The post was migrated from Yahoo.
Very recent Supreme Court case on this exact issue.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Mark JM
Sent: Monday, January 19, 2009 10:02 AM
To: cdcbaa@yahoogroups.com
Subject: RE: [cdcbaa] Transfer Tax on Quitclaim
Thanks. I believe it does. And thanks also to Larry Simons for calling
with that info.
The post was migrated from Yahoo.
I just settled an adversary on a fraudulent transfer claim representing the
defendant. We (I) need to prepare a quitclaim deed transferring the
Chapter 7 Trustee's interest (to the extent the Trustee had any interest) in
the real property in question. I'm not really sure the estate even had an
interest because title is not in the debtors' names, but in their son (my
client). The Trustee put a lis pendens on the property, and is removing
that.
There is that section on the quitclaim deed that asks for the amount of the
documentary transfer tax, which usually is avoided in the event of a
bonafide gift under R&T code 11911. However, if we settled with the
Trustee, it's not a gift. So does anyone know if and how to calculate the
transfer tax, to whom it gets paid, etc?
Anyone deal with this before?
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
Toll Free: 1-866-576-6275
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this means at
The post was migrated from Yahoo.