Transfer Tax on Real Estate

SumoDog · 11-25-2009, 09:33 AM

Well you have been fooled by the so called NH advantage - no income tax - that is a lie - if you are single and earn more than $2,400 in interest and dividends you pay 5% - I consider interest and dividends income. Also effective this year - you go to Foxwoods and hit a $10,000 slot - State of NH will take 10% of your winnings - and to top it off - you can not offset any gambling losses against this income - so if you lost the $10,000 the next nite - Nh would still take 10% in taxes from you. On the business side - you pay a .75% enterprise tax based on payroll paid, interest paid and dividends paid, you pay a 8.5% business profits tax and effective this year (under certain conditions) LLC's and partnerships may pay up to 13.5% in taxes - do not quote me (but I know I am pretty close) when it comes to business taxes NH rates 47th out of the 50 states - so what advantage do we really have?

wifi · 11-25-2009, 09:39 AM

Quote:

Originally Posted by SumoDog

.... so what advantage do we really have?

Well, for one thing, we don't have town dental coverage forced on us taxpayers..... yet

tis · 11-25-2009, 09:41 AM

You are so right, Sumodog. I think about that every time I hear NH doesn't have an income tax.

Just Sold · 11-25-2009, 01:04 PM

NH State Property Transfer tax is paid at the closing. The closing attorney shows the charge on the HUD settlement paperwork. It is $15.00 per $1000.00 of sale price of the property. This is split 50/50 between buyer and seller.

ie. $100,000 sale price - $15.00 x 100 = $1500 / 2 = $750.00 ea for buyer and seller. In MA it is the seller who pays the tranfer tax.

bigdog · 11-25-2009, 04:03 PM

Thanks everyone for the great feedback, much aprecaited !
Always good thing, going into a business transaction with the facts.
'Knowledge is Power' !

Still think NH is one of the best States to live in the N.E., all depends how you place your priority on things......

SumoDog, I understand and respect your opinion !
ANY form of taxes hurts the small business owner ! Bad all-around.

In my case:
#1 - I don't gamble, so the State cannot take something from nothing !
#2 - Invest in Tax Exempt Muni Bonds-No Fed Taxes, maybe no State taxes?
#3 - Employed by a Forune 100 company - They take upon all costs for me

Thanks, and have a great Thanksgiving everyone !
Bigdog

Slickcraft · 11-25-2009, 04:36 PM

Quote:

Originally Posted by bigdog

#2 - Invest in Tax Exempt Muni Bonds-No Fed Taxes, maybe no State taxes?

There is no NH state tax on NH issue Muni Bonds. There are other exceptions to the 5% tax as well including direct obligations of the US Government.

jrc · 11-25-2009, 05:38 PM

Check with your tax advisor, I think Puerto Rico bonds are tax exempt in NH.

You can also invest in growth stocks, no dividends, no NH taxes.

SumoDog · 11-25-2009, 09:33 PM

JRC makes a good point - some things are not taxable to NH - please remember for federal tax purposes the mutual fund companies report short term capital gains as ordinary dividends - these short term capital gains are not taxable by NH - be sure to provide your local CPA the proper information so that he/she can segragate your s/t capital gains from taxation to NH - feel free to contact me if you are confused - I am a local tax practioner - do not pay NH any more than you have to

Rattlesnake Guy · 11-25-2009, 10:15 PM

Don't forget...the transfer stamps are tax deductible on your federal return.

BroadHopper · 11-28-2009, 07:44 PM

Quote:

Originally Posted by Just Sold

NH State Property Transfer tax is paid at the closing. The closing attorney shows the charge on the HUD settlement paperwork. It is $15.00 per $1000.00 of sale price of the property. This is split 50/50 between buyer and seller.

ie. $100,000 sale price - $15.00 x 100 = $1500 / 2 = $750.00 ea for buyer and seller. In MA it is the seller who pays the tranfer tax.

The tax is $15.00 per thousand. but I had to pay the full amount.

My mother willed the condo to me and even tho it is an inheritance or gift, I had to pay the transfer tax along with the inheritance tax. I had to take out a home equity loan to take care of it.

Grant · 11-28-2009, 08:07 PM

Cry me a river. I live in Pennsylvania. Insane. Otherwise, our taxes are reasonable (consider neighboring NJ's real estate taxes, for example). But 4% transfer is insane...yet no one gripes about it down here. We're sheep.

11-25-2009, 01:04 PM	#4
Just Sold Senior Member Join Date: Apr 2004 Location: Suncook, NH, but at The Lake at Heart Posts: 2,615 Thanks: 1,083 Thanked 434 Times in 210 Posts	NH State Property Transfer tax is paid at the closing. The closing attorney shows the charge on the HUD settlement paperwork. It is $15.00 per $1000.00 of sale price of the property. This is split 50/50 between buyer and seller. ie. $100,000 sale price - $15.00 x 100 = $1500 / 2 = $750.00 ea for buyer and seller. In MA it is the seller who pays the tranfer tax. __________________ Just Sold At the lake the stress of daily life just melts away. Pro Re Nata

11-25-2009, 04:03 PM	#5
bigdog Senior Member Join Date: Apr 2006 Location: Central MA-Gilford Posts: 1,452 Thanks: 347 Thanked 124 Times in 98 Posts	Transfer Tax on Real Estate Thanks everyone for the great feedback, much aprecaited ! Always good thing, going into a business transaction with the facts. 'Knowledge is Power' ! Still think NH is one of the best States to live in the N.E., all depends how you place your priority on things...... SumoDog, I understand and respect your opinion ! ANY form of taxes hurts the small business owner ! Bad all-around. In my case: #1 - I don't gamble, so the State cannot take something from nothing ! #2 - Invest in Tax Exempt Muni Bonds-No Fed Taxes, maybe no State taxes? #3 - Employed by a Forune 100 company - They take upon all costs for me Thanks, and have a great Thanksgiving everyone ! Bigdog Last edited by bigdog; 11-25-2009 at 04:04 PM. Reason: spelling

11-25-2009, 09:33 PM	#8
SumoDog Member Join Date: May 2009 Posts: 22 Thanks: 0 Thanked 4 Times in 3 Posts	JRC Post JRC makes a good point - some things are not taxable to NH - please remember for federal tax purposes the mutual fund companies report short term capital gains as ordinary dividends - these short term capital gains are not taxable by NH - be sure to provide your local CPA the proper information so that he/she can segragate your s/t capital gains from taxation to NH - feel free to contact me if you are confused - I am a local tax practioner - do not pay NH any more than you have to

11-28-2009, 08:07 PM	#11
Grant Senior Member Join Date: Jul 2002 Location: Pennsyltuckey, Tuftonboro, Moultonborough Posts: 1,504 Thanks: 382 Thanked 232 Times in 126 Posts	Cry me a river. I live in Pennsylvania. Insane. Otherwise, our taxes are reasonable (consider neighboring NJ's real estate taxes, for example). But 4% transfer is insane...yet no one gripes about it down here. We're sheep. __________________ "When I die, please don't let my wife sell my dive gear for what I told her I paid for it."

11-25-2009, 09:33 AM	#1
SumoDog Member Join Date: May 2009 Posts: 22 Thanks: 0 Thanked 4 Times in 3 Posts	State is Lying Well you have been fooled by the so called NH advantage - no income tax - that is a lie - if you are single and earn more than $2,400 in interest and dividends you pay 5% - I consider interest and dividends income. Also effective this year - you go to Foxwoods and hit a $10,000 slot - State of NH will take 10% of your winnings - and to top it off - you can not offset any gambling losses against this income - so if you lost the $10,000 the next nite - Nh would still take 10% in taxes from you. On the business side - you pay a .75% enterprise tax based on payroll paid, interest paid and dividends paid, you pay a 8.5% business profits tax and effective this year (under certain conditions) LLC's and partnerships may pay up to 13.5% in taxes - do not quote me (but I know I am pretty close) when it comes to business taxes NH rates 47th out of the 50 states - so what advantage do we really have?

11-25-2009, 09:41 AM	#3
tis Senior Member Join Date: Jan 2006 Posts: 6,805 Thanks: 759 Thanked 1,468 Times in 1,024 Posts	You are so right, Sumodog. I think about that every time I hear NH doesn't have an income tax.

11-25-2009, 05:38 PM	#7
jrc Senior Member Join Date: Apr 2004 Location: NH Posts: 2,689 Thanks: 33 Thanked 439 Times in 249 Posts	Check with your tax advisor, I think Puerto Rico bonds are tax exempt in NH. You can also invest in growth stocks, no dividends, no NH taxes.

11-25-2009, 10:15 PM	#9
Rattlesnake Guy Senior Member Join Date: Sep 2004 Posts: 1,254 Thanks: 423 Thanked 366 Times in 175 Posts	Don't forget...the transfer stamps are tax deductible on your federal return.