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Interesting Recent Tax Advice from Florida Department of Revenue

1) Technical Assistance Advisement —TAA 118-296;  No. 14B4-003: A proposed deed will transfer unencumbered Florida real properties from a parent limited partnership to a subsidiary LLC.  The Department of Revenue (the “DOR”) held that documentary stamp tax will be due if the limited partnership holds the same percentage interest in the LLC after the transfer as it held in the LLC prior to the transfer (no transfer of a beneficial interest in the properties) AND no other consideration for the properties was transferred.  The tax is due on the total consideration for the property interest transferred.  In this case, because only nominal consideration will be paid, only $.70 of documentary stamp tax will be due.

2) Technical Assistance Advisement No. 14B4-001: Proposed deeds will transfer unencumbered Florida real properties from individuals to an LLC.  The DOR held that minimal documentary stamp tax will be due on the proposed deeds if each individual holds the same percentage interest in the LLC after the transfer as they held in the properties before the transfer of the properties and no other consideration will be transferred.

 

Want to further discuss these issues?  Contact me at 954-944-3929 or nrumbak@rumbaklaw.com.

*This document contains legal information, but does not contain legal advice.

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