Subchapter L. CREDITS AGAINST TAX
Sec.
91.231. Transfers by real estate brokers.
91.232. Transfers by builder of residential housing.
91.233. Transfers by grantor of rented real estate.
91.234. Tax paid on land contract.
91.235. Application of credits.§ 91.231. Transfers by real estate brokers.
If a licensed real estate broker transfers residential property, which was transferred to the broker within the preceding year as consideration for the purchase of other residential property, the tax paid on the initial transfer shall be credited toward the tax due upon the subsequent transfer. To claim the credit, a statement of value shall accompany the document.
Example:A transfers his residence to B, a licensed real estate broker, who allows A $50,000 on the purchase of other residential property. Within 1 year of the transfer by A to B, B sells the residence to P for a consideration of $75,000. The computation of the tax is as follows:
Tax on transfer to P…$750
Tax on transfer to B…-500
Tax due on transfer to P…$250
Authority The provisions of this § 91.231 issued under section 1107-C of the Tax Reform Code of 1971 (72 P. S. § 8107-C).
Source The provisions of this § 91.231 adopted September 9, 1988, effective September 10, 1988, 18 Pa.B. 4096.
Cross References This section cited in 61 Pa. Code § 91.232 (relating to transfers by builder of residential housing); and 61 Pa. Code § 91.234 (relating to tax paid on land contract).
§ 91.232. Transfers by builder of residential housing.
If there is a transfer by a builder of residential property which was transferred to the builder within the preceding year as consideration for the purchase of new, previously unoccupied residential property, a credit for the amount of the tax paid at the time of the transfer to the builder shall be given to the builder toward the amount of the tax due on the transfer. To claim the credit, a statement of value shall accompany the document. For computation, see the example in § 91.231 (relating to transfers by real estate brokers).
Authority The provisions of this § 91.232 issued under section 1107-C of the Tax Reform Code of 1971 (72 P. S. § 8107-C).
Source The provisions of this § 91.232 adopted September 9, 1988, effective September 10, 1988, 18 Pa.B. 4096.
§ 91.233. Transfers by grantor of rented real estate.
If there is a transfer of real estate which has been rented by the grantor to another, a credit for the amount of tax paid at the time of the rental shall be given to the grantor toward the tax due upon the transfer. To claim the credit a statement of value shall accompany the document.
Example:A leases real estate to X for a 50-year term and tax is paid in the amount of $8,000. A sells the real estate subject to X’s lease to P for $1 million. The computation of the tax is as follows:
Tax on transfer to P…$10,000
Tax on lease to X…-8,000
Tax to be paid to recorder on transfer to P…$2,000
Authority The provisions of this § 91.233 issued under section 1107-C of the Tax Reform Code of 1971 (72 P. S. § 8107-C).
Source The provisions of this § 91.233 adopted September 9, 1988, effective September 10, 1988, 18 Pa.B. 4096.
§ 91.234. Tax paid on land contract.
If there is a conveyance by deed of real estate which was previously sold under a contract for a deed by the grantor, the grantor shall receive a credit for the amount of tax paid on the land contract on the tax due upon the deed. To claim the credit, a statement of value shall accompany the document. For computation, see the example in § 91.231 (relating to transfers by real estate brokers).
Authority The provisions of this § 91.234 issued under section 1107-C of the Tax Reform Code of 1971 (72 P. S. § 8107-C).
Source The provisions of this § 91.234 adopted September 9, 1988, effective September 10, 1988, 18 Pa.B. 4096.
§ 91.235. Application of credits.
If the tax due upon the transfer is greater than the credit given under this section, the difference shall be paid. If the credit allowed is greater than the amount of tax due, no refund or carryover of the tax credit will be allowed.
Authority The provisions of this § 91.235 issued under section 1107-C of the Tax Reform Code of 1971 (72 P. S. § 8107-C).
Source The provisions of this § 91.235 adopted September 9, 1988, effective September 10, 1988, 18 Pa.B. 4096.
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