In Florida what is the applicable sales tax on a real estate transaction – sngl family home?
Florida does not impose sales tax on the sale of real estate. Sales tax is imposed only on sales or leases of tangible personal property pursuant to Section 212.05, Florida Statutes. However, Florida does impose documentary stamp taxes on all transfers of real estate. The tax is 0.7% of the consideration (i.e., price) paid for the property. Consideration can be in the form of cash, property, or debt relief. The county will not record the deed unless stamps demonstrating the tax was paid are affixed to the deed. There is a way to get around this tax. First, you transfer the property to a wholly owned corporation or limited liability company. If the land is not secured by a mortgage, this transfer is tax-free. Then, you sell the stock of the company or the interests in the LLC to the buyer rather than the land itself. Because you are selling intangible personal property rather than real property, no tax is due on the sale. The buyer can then liquidate the company or continue to hold the
