When transferring real estate in the state of Nevada, a special tax known as the Real Estate Transfer Tax is applicable. The registrar of the county where the property is located is responsible for collecting the tax at the time of recording the transfer. After all required taxes and registration fees are paid, the deed is recorded. In certain cases, it may be possible to avoid paying the real estate transfer tax if the transfer is made between siblings and one parent is still alive.
For instance, if a property is transferred from one sibling to another parent and then back to the other sibling. However, if a person transfers real estate to himself and two other people as co-tenants, a real estate transfer tax is due on the full value of the property, unless the transfer is made between spouses or between parents and children. In such cases, buyers usually acquire a limited liability company or other entity that owns the ownership of the real estate, rather than buying it directly. If a probate court order grants the property to adult children of a deceased person with different surnames, and SPECIFICALLY DETERMINES THAT THIS IS A TRANSFER BETWEEN FATHER AND SON, it may be enough to avoid paying the real estate transfer tax and prevent presenting birth certificates, marriage certificates, etc. Nevada legislators have taken steps to close a loophole in the state's real estate transfer tax law after The Review-Journal reported numerous high prices.
Now, offers in Las Vegas are structured in a way that allows buyers and sellers to avoid paying the tax. The county appraiser will require an actual transfer tax on the full value of the property if a deceased's grandchild, who doesn't get an exemption without a will, has an undivided share in the house. When transferring real estate, it's important to consider these exemptions as they can save you money. In simple resale transactions involving real estate transfers, normally it's the transferor who pays the real estate transfer tax based on the purchase price of that property (although this is negotiable in Nevada and sometimes it's paid by the transferee). It's also argued that this cost will be reimbursed in equity within one year of homeownership.
A major exception that you won't find when reading statutes literally is that in Clark County, properties transferred by will are not subject to a real property transfer tax. When filed, the County Recorder will require a tax on transferring real property unless it's made between spouses or between parents and children. The value declaration is a form prescribed by Nevada Tax Commission to provide information regarding real estate transfers. It's important for those looking to buy or sell real estate in Clark County to understand how this tax works and what exemptions may be available. It's also important to understand how offers are structured in Las Vegas so that buyers and sellers can avoid paying this tax. Knowing when a probate court order grants property to adult children with different surnames can also help avoid paying this tax.
Finally, understanding who pays this tax in simple resale transactions can help buyers and sellers plan accordingly. Real estate transactions can be complicated and understanding how taxes work can help make them smoother. Knowing when exemptions are available and how offers are structured can help buyers and sellers save money when transferring real estate in Clark County.