Being Married Has New Benefit on Deed Transfers Starting July 1

Last year, Florida Law was amended to provide that documentary taxes do not apply to a deed that conveys homestead property between spouses, if the only consideration for the conveyance is the amount of a mortgage and if the deed was recorded within one (1) year after the date of the marriage. The Law applied to conveyances from one spouse to the other, from one spouse to both spouses, or from both spouses to one spouse. The 2019 legislative change further amended the statute to remove the requirement that the deed be recorded within one (1) year of the date of marriage. There is no longer a time limitation for recording the deed to avoid payment of the documentary taxes. This new law benefiting spouses in deed transfers becomes effective July 1, 2019.

Documentary stamp tax is an excise tax imposed on certain documents executed, delivered, or recorded in Florida. The most common examples are:

Documents that transfer an interest in Florida real property, such as deeds; and

Written obligations to pay money, such as promissory notes and mortgages.

The Documentary stamp tax is paid to the Clerk of Court when the document is recorded. When a taxable document is not recorded, the tax must be paid directly to the Florida Department of Revenue.

In all Florida counties except Miami-Dade, the tax rate imposed on documents subject to tax is 70 cents on each $100 or portion thereof of the total consideration.

This is great news for inter-spousal transfers!

Cynthia C. Rignanese of Rignanese & Associates is available to work with clients and businesses. Since 1991, we have been saving people time, trouble and money in legal matters. Please reach out to us at 863.294.1114 or via our website at http://www.RignaneseLaw.com