Doc Stamp Calculation On Florida Short Sales To Be Based On Price Paid By Buyer, Not Seller's Higher Mortgage Balance

In Florida, The Tampa Tribune reports:

• The confusion over state tax law that threatened to bottleneck home sales throughout the state has been resolved. The Florida Department of Revenue said Tuesday that real estate "document stamp" taxes should be paid on the transaction price of short sales, not the higher value of the mortgage. The Florida statute was unclear when it came to short sales - a popular strategy some troubled owners can take to sell their homes for less than the mortgage. Some title companies throughout the state had begun to charge taxes on the higher amount, causing much concern among sellers and real estate agents.

For more, see Taxes Should Be Paid On Transaction Price In State's Short Sales.

For the Florida Department of Revenue advisory, see Technical Assistance Advisement No. 09B4-001 - Documentary Stamp Tax - "Short Sales" of Florida Real Property.