The citizen. (Frederick City, Md.) 1895-1923, 1915-02-05
INSTRUMENTS SUBJECT TO
TAX.

AANAN helo DCCl SOllG MISUNDERSTANDING
ing IN Frederick county concerning
the class of instruments that are sub
Ject to the internal revenue tax, or
War Tax. Some time ago there was a
discussion in the clerks office rela-
tive to whether or not deed execut-
ed, dated and delivered prior to De-
cember l, 1914, was taxable. In this
particular incident the instrument IS
not taxable and may be submitted for
record without afixing revenue
stamp
The following are extracts from an
opinion that was handed down by the
Treasury Department, after a request
had been made by Emory l.. Coblentz:
"a deed which was dated prior to
December /, 1914, but was acknowl-
edged before notary public and de-
llvereo subsequent to that date, is
taxable.
Section 13 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 affixed
and cancelled in the manner prescrib-
ed by law.
Where 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 par
ty offering the same for record, he
should notify the collector of internal
Tn fe 81
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.
"a 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 owner of
land. If executed by broker it is
subject to tax of 10 cents.
ga partition deed which is operative
in defining boundary lines or in show
ing by location each tenant-in-com-
mons interest, is not subject to tax.
"a quit claim deed given for no
consideration, or merely the nominal
consideration of 81 for the purpose of
correcting flaw in title, is not sub
ject to tax. No tax is imposed upon
an option for the purchase of real
property.
coil leases, leases of mining prop
erty, long term mining leases, etc.,
which, in themselves, convey no title
to, or interest in, real property, are
exempt from tax.
"Deeds in escrow do not become
subject to said tax until the final deliv-
cry is made. Therefore, if delivery of
such deed is made subsequent to
December l, 1914, it becomes subject
to the tax imposed upon conveyance.
Deeds of release and deeds of trust
are exempt from tax under the pro-
visions of the said act.
Deeds issued by masters in chan
Gerry, sheriffs, etc., to cover transfer
of property sold under foreclosure
or 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 right
to sepulture, 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 indi-
vidual to a municipality or other po-
litical subdivision, wherein the con-
sideration named Is natural love and
affection and ST. Desire to promote
public welfare and ST. or 81 and 9TH
er valuable considerations, is not tax
able.
"In the case of an exchange of two
properties, the deeds transferring title
to each are subject to tax, which
should in each case, be computed on
the basis of the actual value of the in
terest or property conveyed, the
amount of any lien or encumbrance
being deducted.
"a deed executed by debtor COW
ering an assignment of property to a
trustee to be held for the benefit of a
creditor is not subject to tax. When,
however the trustee sells or conveys
such property, either to the creditor
or any other persons the deeds xecut-
ed by him are taxable.
"a deed transferring title to prop
erty to a building and loan associa-
ton for the purpose of securing loan
on the property so conveyed, which
property is Immediately re-conveyed
to its owner, is not subject to tax; the
deed of reconveyance being likewise
exempt.
"A deed given by a husband and
wife to straw man. who immediate
ly executes a deed re-conveying the
property to the wife, is not subject to
tax, if given for no valuable considera-
ton, or merely the nominal considera-
tion of $100, and, likewise the deed
of re-conveyance is exempt"
DaoI Ecfofa Tronsfare