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Who pays the excise tax on real estate?
Definition of Excise Tax It's paid by the seller to the escrow agent or the attorney responsible for closing the deal, who then pays it to the government. Not exclusive to real estate, excise taxes are paid on most goods produced within a country.
What is an excise tax on real estate?
Definition of Excise Tax An excise tax is a tax on the transfer of ownership from the seller to the buyer paid at closing. The tax amount is based on the sale price of the home and varies by state and local government. Not exclusive to real estate, excise taxes are paid on most goods produced within a country.
Do I have to pay excise tax when I sell my home?
When both a buyer and seller finalize the terms of a property sale, the seller will be required to pay excise tax on the value of the transaction. Generally speaking, the treasurer's office in your local county will be responsible for collecting excise taxes on the state and local level.
What is the excise tax in Washington state?
Washington state levies a real estate excise tax (MEET) on all property sales. This state tax rate is 1.28% of a property's full selling price.
Is excise tax included in closing costs?
On the LE (loan estimate) excise tax is considered a closing cost. In your case, you negotiated to split all closing costs. I would interpret this to mean the buyer and seller are responsible for half of the tax.
Who pays sales tax on a house?
Homeowners may exempt the first $250,000 of the value of a principal residence but not investment property from gains taxes. This tax is paid not during the sale of the property, but when the original homeowner reports income to the Internal Revenue Service Schedule D of the Form 1040.
What is excise tax on sale of home in Washington state?
Washington state levies a real estate excise tax (MEET) on all property sales. This state tax rate is 1.28% of a property's full selling price.
Can you deduct excise tax on sale of home?
Deducting Excise Taxes From Home Value Although excise taxes cannot be deducted on your tax return, they can help reduce the value of the sale itself. Currently, individuals are not required to pay capital gains tax if the proceeds of the sale do not exceed $250,000 for single tax filers and $500,000 for couples.
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