Alma record. (Alma, Mich.) 1878-1928, 1915-02-11

1914, Is not subject TO tax under the
provisions of the said act, and. there
fore, may be accepted for record sub
sequent to that date without having
documentary stamps affixed thereto.
A deed which was dated prior to
December /, 1914, but was acknow-
lodged before "A notary public and de-
| livered subsequent to that date. is tax
able.
Section Is Of the said act provides
that it shall not be lawful to record
or register any instrument paper. or
document required by law to be stamp
ed unless stamp or stamps of the
proper amount shall have been affix
ed and cancelled in the manner pre-
scribed by law.
Where a deed is presented to
recording officer and it appears prob
able that an insufficient amount of
internal-revenue stamps are attached
thereto, and he is not satisfied with
the explanation furnished by the party
offering the same for record, he should
notify the collector Of internal-reve-
nue.. 1t is not expected that the
recording officer will institute an in
vestigation to see whether there has
been any violation of the law. nor is
it thought that he should exact an
affidavit showing the true considera-
ton.
\ contract for the sale of real
estate which provides for the issuance
of deed at some future date upon the
fulfillment of certain conditions is not
subject to tax if executed by the own
er of the land. If executed by brok-
en- it is subject to a tax Of 10 cents.
A partition deed which is operative
in defining boundary lines or i'm show
ing by location each tenant in COM
mons interest is not subject TO tax.
A quitclaim deed given for no con-
sideration or merely the nominal con-
sideration Of 81 for the purpose of
correcting a flaw in title is not sub
ject to tax. No tax is imposed upon
an option for the purchase of real
property.
Oil leases, leases Of mining proper
/ t., long term mining leases, etc,
which in themselves convey no title
20 or interest i'm real property are
exempt from tax.
Deeds in escrow DO not become sub
ject to the said tax until the final de
livery is made. Therefore if delivery
Of such "a deed is made subsequent to
December 1, 1914, it becomes subject
to the tax imposed upon conveyances.
Deeds of release and deeds of trust
are exempt from tax under the pro-
visions of the said act.
Deeds issued by masters i'm chanc-
cry sherifTs, etc. to cover transfer Of
property. sold under foreclosure on
execution are subject to tax, the cost
OF which may be added to the court
costs
Deeds to burial sites which do not
convey title TO land, but only a right
TO sepluture, to erect monuments, etc.
are exempt from tax.
A deed issued to cover "A gift of
property from husband to wife, or
from parent to child, or from an in
dividual, to a municipality or other
political subdivision, wherein the con-
sideration named is natural love and
affection and 81" desire to promote
public welfare and ST." or "S1 and
other valuable considerations" is not
taxable
In the case of an exchange of two
properties, the deeds transferring
titlesto each are subject to tax, which
10, 81
the basis of the actual value of the
interest or property conveyed, the
amount of any lien or incumbrance be-
ing deducted.
A deed executed by debtor cover
ing an assignment of property to a
trustee 10 be held for the benefit of
creditor is not subject to tax. When,
however, the trustee sells or conveys
such property, either to the creditor
or any other person, the deeds eXecut-
ed by him are taxable.
A deed transferring title to proper
ty 20 building and loan association for
the purpose Of securing loan on the
property so conveyed, which property
is Immediately reconveyed to its own
er, is not subject to tax, the deed of
reconveyance being like wise exempt.
A deed given by a husband and wife
to a STRAW man" who Immediately
executes a deed reconveying the prop
erty to the wife is not subject to tax
if given for no valuable consideration
or merely the nominal consideration
Of 81. and, likewise, the deed of re-
conveyance is exempt.
Respectfully.
G.. r. FLETCHER.
Acting Commissioner Of Internal
! Revenue.