Daily Kennebec journal., 1899-05-17
COVERING REAL ESTATE TRANSFERS.
New Ruling and Amendments TO War Revenue
Law from Treasury.

the treasury department there are the
IoiloWing new amendments and the
fullng relating to transfers of incum-
bered real estate which has been great
ly bothering the Augusta attorneys as
TO correct Interpretation of the law
The ruling makes this plain.
The first is the ruling relating to
transfers of real estate the full text of
which reads:
Treasury Department, Office Of Com
missioner of Internal Revenue.
Washington, d. G., May 6, 1899
| Hr- IhlS off1ce is in receipt of a let
ter IRON Mr.. w. II. Rosenbault. $50
broadway, New York city, under date
OF April %, 1892 in which he asks if
cohVeyances operating as gifts of real
estate are subject to taxation-as, for
instance. conveyance from a hus-
| band to his wife for the purpose of a
gift to his wife.
In reply. you will please inform him
that all conveyances of real estate
which operate as gifts are subject to
taxation, and the tax is based upon the
value of the real estate conveyed by
the real estate conveyed by the instru-
ment and this value is TO be found as
though the property We're unincum-
bered. if it is incumbered
When husband desires to convey
property to his wife for the purpose of
a gift. and the property is conveyed to
a third party. and by said third party
conveyed to the wife. both deeds arr
subject to a taxation based on the
value of the property conveyed
| Respectfully yours.
G. w. Wilson.
Commissioner
Mr.. G. ~. Treat, Collector Second Dis
trict, New York, n. Y
| On February IS. 1899. an amendment
to Schedule A of the war revenue act
| was approved, to the following effect:
Whenever any bond or note shall be
secured by mortgage, or deed of trust
but one stamp shall be required to be
| placed upon such papers; Provided
That the stamp tax placed Thereon
shall be the highest rate required fol
said instruments, or either of them
Under this amendment it has been
held:
ID In stamping promissory notes Sc
cured by a mortgage, the comparison
is made between the mortgage and one
note, and that the larger note, if more
than one note is secured by the mort
gage. For instance the sum of $l400 il
borrowed, and to secure the payment
of this sum a mortgage is executed foI
that amount securing the payment OF
two notes-onc for $SS payable in one
year, and one for $500 payable in two
years. Comparison in this instance is
made between the mortgage and the
larger note which note is subject to a
tax of 16 cents and the mortgage secur-
ing the same to a tax of % cents;
therefore, the mortgage should be
stamped.
IT, instead of executing two notes,
one note for s1400 were executed. the
greater tax would accure on the note
$1400 promissory note being subject to
a tax of IS cents and the mortgage Sc
curing the same being subject of %
cents: therefore, the $1400 note would
he the instrument that should be
stamped.
When mortgage is given to secure
the payment Of a sum exceeding $500,
said $500 indebtedness being repre-
sented by a promissory note, the
greater taxation will always accure
upon the mortgage, but up to this
amount of $500 the question of
whether or not more than one note is
executed should be taken into consid-
Grafton in the comparison in order to
determine which instrument should be
stamped. The following is the correct
manner of stamping a mortgage and
note for sums not exceeding $500
Notes not exceeding $1,000 secured
by mortgage must be stamped, the
mortgage being exempt up to that
amount.
Note not exceeding SllOO tstamp
mortgage and not note) $025.
Note not exceeding $1,000 tstamp
mortgage and not note) .25
Note not exceeding Sl3oO tStamp
note and not mortgage) 20.
Note not exceeding $14OO tstamp
note and not mortgage) .2S
Note not exceeding Sl5Oo tstamp
not and not mortgage) 80.
In all instances regarding bonds ana
notes secured by a mortgage. and in
strument on which the tax does not
accure should have indorsed upon Ii
that the contemporaneous instrument
is duly stamped according to law.
(2) Under this amendment to
Schedule A the bond of private per
son secured does not exceed $500, be-
cause up to this amount the greater
tax accrues on the bond. said tax be
ing 80 cents. the mortgage not being
subject to a 80 cent tax unless the
amount secured exceeds $500 and does
not exceed $4,000. When the amount
secured exceeds $500 and does not eX
ceed $1,000 the tax is equal and when
| this OCCURS the mortgage should be
| stamped. and not the bond. but the
| bond should have an Endorsement that
| the mortgage has been duly stamped
as required by law.
t0 Where bonds of associations.