Real Estate Transfer Fee Common Questions

Joint Tenancy

  1. In preparing a transfer tax return to accompany a deed in which the owner of a single-family residence is a single male. He has requested that we prepare a deed from him (as sole owner) to himself and his cohabitant (as joint tenants). The couple does not plan to marry. Following are my questions:
    • When figuring the transfer fee, should I figure it on ½ the value of the real estate or should I figure it on the entire value?
    • Grantor/Grantee relationship: Is it none? Or is it "Other" with the explanation of "cohabitants"?
    • Type of Transfer: Should it be "Other" and explained as "Conveyance" with no explanation?
    • Ownership interest transferred: Should it be "Full" or should it be "Other" and explained by "Grantor is conveying a ½ interest to Grantee"?
    • Does Grantor retain any of the following rights: Should it be "None" (because he is giving up his rights as an individual owner and conveying them to himself and his cohabitant as joint tenants)? Or should it be "Other" and explained with "Grantor retains a ½ interest"?
  2. In filing a quit claim deed from a surviving spouse disclaiming joint tenancy in the real estate of the decedent under sec. 854.13(2) (b), Wis. Stats., the effect is as though the surviving joint tenant had predeceased the decedent. Is a transfer return required? Also, would a return be required when the children of the decedent disclaimed any interest in the estate and they had no prior interest or title in the real estate?

Joint Tenancy

  1. In preparing a transfer tax return to accompany a deed in which the owner of a single-family residence is a single male. He has requested that we prepare a deed from him (as sole owner) to himself and his cohabitant (as joint tenants). The couple does not plan to marry. Following are my questions:
    • When figuring the transfer fee, should I figure it on ½ the value of the real estate or should I figure it on the entire value? Transfer fee is due on one half of the fair market value since one half of the value is being conveyed.
    • Grantor/Grantee relationship: Is it none? Or is it "Other" with the explanation of "cohabitants"? Either one applies or both may be checked. "Other" must have an explanation.
    • Type of Transfer: Should it be "Other" and explained as "Conveyance" with no explanation? "Other" can be checked and explained as "cohabitants."
    • Ownership interest transferred: Should it be "Full" or should it be "Other" and explained by "Grantor is conveying a ½ interest to Grantee"?"Other" and explained by "Grantor is conveying a ½ interest to Grantee".
    • Does Grantor retain any of the following rights: Should it be "None" (because he is giving up his rights as an individual owner and conveying them to himself and his cohabitant as joint tenants)? Or should it be "Other" and explained with "Grantor retains a ½ interest"? "Other" and explained with "Grantor retains a ½ interest".
  2. In filing a quit claim deed from a surviving spouse disclaiming joint tenancy in the real estate of the decedent  under sec. 854.13(2) (b), Wis. Stats., the effect is as though the surviving joint tenant had predeceased the decedent.  Is a transfer return required? Also, would a return be required when the children of the decedent disclaimed any interest in the estate and they had no prior interest or title in the real estate?

    The spousal deed would be exempt from return and fee per sec. 77.25(11), Wis. Stats., as being "By will, descent or survivorship."  It is assumed that spouses may also have an interest in the property under marital property law. For the children, since they had no prior interest or title in the property, this would be exempt from return and fee pursuant to sec.77.21 (1), Wis. Stats. You should state on the document something to the effect "this is a disclaimer only and not a conveyance as defined by sec. 77.21(1), Wis. Stats, and therefore is exempt from return and fee imposed under sec. 77.22(1), Wis. Stats. " If they had an interest in the property, then the use of the exemption per sec. 77.25(11), Wis. Stats., would apply. We have instructed the Register of Deeds that they should not accept exempt recordings verbally and the person recording the document should place the exemption on the document when no return is furnished.

FOR MORE INFORMATION CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Local Government Services Bureau
PO Box 8971, MS 6-97
Madison, WI 53708-8971
Phone: (608) 264-6885 or (608) 266-1594
Fax: (608) 264-6897
Email additional questions to eretr@revenue.wi.gov

March 21, 2014