61 Pa. Code § 91.233
Current through Register Vol. 54, No. 40, October 5, 2024
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
61 Pa. Code § 91.233
The provisions of this §91.233 issued under section 1107-C of the Tax Reform Code of 1971 (72 P. S. § 8107-C).