The Sunday telegram. [volume] (Clarksburg, W. Va.) 1914-1927, 1915-02-07
Are Explained in Some Detail
by the Federal Treasury
Department. ! s'

Departrle XII 81
The federal treasury department
has made some rulings relative t5
deeds, read estate transfers and tie
like in connection with the OPERATION
4 OF the war revenue law. The; depart
ment says:
The said act provides that deed,
Einst rument, or writing. Whereby any
4 laIids, tenements. or other realty sold
Isslan be granted. assigned, tranSfer-
Ded, or otherwise conveyed, when the
tconside artion Of value Of the interest
Tor property conveyed, exclusive Of the
lvahie Of any lien or incumbrance
Il thereon, exceeds 800 and does not
exceed $500, shall be subject to tax
vof b0c; and for each additional $500
OF fractional part thereof in excess OF
II $500, soc. For instance where a
A property Is sold for $1,000, $1,000 o,
which is received in cash and prom
ktsspry note for the balance, the tax
A 70 he imposed upon the deed should
Ebe computed on the basis OF the cash
slTeceiyed and the said prnmissory note
Ebecomes subject to the tax imposed
A upon such instruments, j. e., $1.O0 on
the deed and zoe On the note.
In the case Of deed which states
that the transfer Is made for nom
ftnl consideration, or q consideration
lot $10O, the tax must be computed
upon the actual value Of the interest
j !pf property conveyed; the amount of
amy Hen on encumlbrance being de-
Iducted, and the person who executes
1.-THE deed Is required to affix stamps
Fthereto. and becomes liable to pen
ialty Il stamps in q sufficient amount,
based upon the actual value OF the
Reconsideration given, are not so affix-
When Not Subject to Tax.
a deed wiiich Is executed, dated and
| delivered prior to December 1, 1914
is not subject to tax under the prpyis-
ions Of the said. act and, therefore,
may be, accepted for record subse-
skquent to that date without having
documentary stamps affixed therto.
A deed which was dated prior to-
9, December I, 1914, but wAs acknss ~,
edged before a notary pIblic xfid de-
Eliyered subsequent % thst date il
taxable.
Section 10 of 1x;1e said act brownies
that It shall y.ot be lawful to record
j Or register 5lhy instrument. paper or
document required by law to be
stamped unless stamp or stamps oi
:. me prbei: amount shall have been
amxex and cancelled IN the manner
! pre- cribed by law.
Where a deed Is presented to a re-
Fyording ohcer and it appears prob
able that an insufficient amount OF In
lefnal revenne stamps are attached
thereto and he Is not satisfied with the
tox2lanar zion furnished by the party. Of
fering the same for record. he should
HotiSy the collector OF internal rev
Ienre. 1t is not expected that the re-
cording officer will institute an inyes-
4tgation to see whether there has been
lany violation, OF the law: nor is II
thought thar he should excent an AZ.
ndavit showing the true considera-
!. ltion. ~. ! :
a Contract for the sale Of real es-
te>Mhich provides for the issuance
.lM deed at some future date upon
Gne tulhllment OF certain conditions
IS not subject tor tax, IL executed by
the owner OF the land II executed
ny 9 broker it is subject to tax Of
'tiVc. sffdl -, 49, g
a paTition deed which is operative
"a debating boundary lines or in Show
ing by location each tenant in-com-
mems interest is not subject to tax,
A quit claim deed given for no con-
sideratlon, or merely the nominal
consid Iteration OF $1.0o for the purpose
oil correcting flaw In title, is not
a subject to tax. No tax Is imposed
Yupon an option for the purchase OF
real property.
SOll leases. leases OF mining proper
~, long term mining leases. etc,
which, In themselves, convey no title
20. or interest in, real property are
exempt from tax.
DEEDS in escrow do not become sub
lect to the said tax until the final de-
hvery 10 made. Therefore, IL delivery
81 such a deed is made subsequent to
december 1, 1914, 1t becomes subject
70 the tax imposed upon conveynnces.
Deeds OF Trust Exempt.
Deeds OF release and deeds OF trust
are exempt from tax under the pro-
Visions vi the said act.
Deeds issued by masters in chan
Gerry, sheriffs, ETC., to cover transfer
sof 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
4 convey title to land, but only right
to sepulcure, to erect monuments, etc,
are exempt from tax.
A deed issued to cover a gift OF
property from husband to wife, or
from an individual to a municipality
or other political subdivision, wherein
the consideration named Is natural
love and affection and $1.1D, ..de-
sire to promote public welfare and
$780, OF. $500 and other valuable
consideratioh Is not taxable
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
interest or property conveyed, the
amount OF any lien. or ehcaintbrance
being deducted.
A deed executed by a debtor coy
erlng an assignment Of property to a
Trustee to be held for the benefit OF q
creditor is not subject to tax. When,
!. however, the trustee sells or conveys
~ Atifff- lTrnnnrfv aifhar IA the o,.n,4tf ~,