Transfer taxes on contract assignments?
I recently had someone tell me that you have to pay transfer taxes when you assign a contract. Is this true?
I've done contract assignments and have never paid any transfer tax. In my mind, there is no transfer of ownership only transfer of interest so there should be no transfer tax. Of course, upon closing the seller and the end buyer would have to pay the tax in accordance with how the payment of transfer tax is stipulated in the agreement - the agreement that was assigned.
I'm putting this out to my trusty BiggerPockets folks to set things straight. Thanks and advance... You guys (and the BP website) are wonderful!