Full question:
My sister and I own a commercial unit in Staten Island, N. Y. consisting of three apartments and a nail salon. The Unit is in both our names as joint tenants with the right of survivorship. I am applying for a mortgage on said property and my sister does not wish to co-sign the mortgage. Therefore, the property has to be transferred from me and my sister to my name alone. Can the sale consideration in the Deed affecting such transfer be in a minimal amount in order to avoid payment of taxes since no money is to be exchanged?
- Category: Real Property
- Subcategory: Sales
- Date:
- State: New Jersey
Answer:
The answer will depend on all the facts involved, such as whether the property is part of a business entity or possibly exempt from taxation. Generally, even when no money changes hands, the consideration for a transfer of real estate is the fair market value of the interest transferred, such as 50% of the appraised value in property owned by two joint tenants. While it is possible to state a nominal sum, there are risks to doing so (see articles below ). We are prohibited from giving legal advice, as this service provides information of a general legal nature. You may wish to consult a local attorney who can review all the facts and documents involved.
Please see the following article for further information
http://www.firstamny.com/detail.aspx?id=194&mid=14204
http://www.horizonlandservices.com/articles/xfer_tax_exemptions.pdf
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
