Why do I have to pay Florida Documentary Stamp Taxes when I transfer ownership of my real property into the name of an LLC that I own?
If you don’t have a mortgage or owe any money on the property, you can gift the property to an LLC where you are the only member(s), and only have to pay the minimal Florida Documentary Stamp Tax of $0.70. If there are other members besides those currently on the deed, more than the minimum will be owed. If you have a mortgage on the property, chances are you are going to have to pay Florida Documentary Stamp Taxes on the transfer, even if the transfer is done as a gift for no money. The most likely scenario is you will owe Florida Documentary Stamp Taxes based on the amount of the outstanding mortgage.
Scott Critzer
Scott Critzer began working in the construction and real estate business more than 30 years ago, after graduating from Virginia Tech’s top ranked Department of Civil and Environmental Engineering with a Bachelor of Science in Civil Engineering. He worked first as an engineer for a commercial developer and later as a development project manager. Continuing his education, Scott graduated from Georgia State University College of Law in 1993 and opened his law practice in Atlanta where he worked litigating real estate cases and performed real estate closings. He has been a member of the Florida Bar since 1995 and moved permanently to the Emerald Coast to become Corporate Counsel, and later General Counsel of a title insurance agency in Destin.
In 2008, Scott Critzer renewed his private practice concentrating in the areas of real estate and banking law. Since then Scott has provided legal advice to a wide range of corporate and individual clients throughout the Southeastern U.S. in real estate law (including closings), banking law, creditor’s rights, business law, probate-trust law and other civil matters.
Scott provides a personal approach to the practice of law, taking time to get to know his clients. He takes pride in being able to explain difficult concepts in easy-to-understand terms in order to empower a client to be fully included in the legal process.