Paying Transfer Taxes on a Wholesale
I was talking with a friend who works at a title company here in MD. I was asking him about assignment contracts and he said that alot of companies don't do them because it can get THEM in trouble. His reasoning was that the buyer who has the original contract and then assigns it, is somehow technically supposed to pay state/county transfer taxes on the property since they are selling their right to buy? He said that most of the time it is never caught since there are so few restrictions with HML.
Is there any validity to this, or has anyone heard of this?
I was under the impression that you only had to declare it as income on your W2?