Section 91.233. Transfers by grantor of rented real estate

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

The provisions of this § 91.233 adopted September 9, 1988, effective September 10, 1988, 18 Pa.B. 4096.

Notation

Authority

The provisions of this § 91.233 issued under section 1107-C of the Tax Reform Code of 1971 (72 P. S. § 8107-C).