iThe tax consequences of complex transactions are a concern of individual and corporate taxpayers alike. Taxpayers typically give a lot of attention to the federal and state income tax results of such transactions but may be surprised to find that other state and local taxes such as real property transfer taxes also apply to their transactions. This article considers the applicability of real property transfer taxes to a number of common transactions and provides a basic analytical framework for taxpayers to determine if such taxes will apply to their transactions. Taxpayers should give careful consideration to these taxes when contemplating complex transactions; otherwise, they may be presented with unexpected and unwelcome tax bills.
