Is a transfer of real estate as a gift subject to the Massachusetts deeds excise?
DISCUSSION: Massachusetts imposes an excise upon the transfer of any deed, instrument or other writing whereby realty sold is conveyed to a purchaser. G.L. c. 64D, § 1. The excise is based upon the consideration given for the property and applies whenever the consideration, exclusive of any lien or encumbrance remaining on the property, is greater than $100. The tax is paid by the person making or signing the deed and is evidenced by an affixed stamp. As of July 1, 1989, the tax is $2.00 for each $500, or fraction, of consideration plus an additional tax of 14% of the tax imposed, i.e., $2.28/$500, except in Barnstable County where the rate, including surtax, is $2.85/$500. The rates are currently scheduled to change on July 1, 1992. The tax applies, however, only to those transactions in which realty is “sold”. G.L. c. 64D, § 1. It does not apply to deeds given without consideration, including deeds conveying realty as bona fide gifts, even though the deed may recite a consideration f
