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Divorce and Deeds Excise Tax

Jun 10, 2024 | Uncategorized

The current indexing standard states that a divorcing party will not be subject to excise tax, however the DOR ruling 82-70 states this is not true. DOR ruling supersedes the indexing standards, therefore divorcing parties will be subject to excise tax.

The DOR Ruling controls:

Deeds Excise applies to a deed that conveys an interest from one spouse to another for an amount equal to one-half of the couple’s equity in the property (See DOR Letter Ruling 82-70). If there is no equity in the property being conveyed the deed should so state to avoid the document being rejected by the registry.

The Current Indexing Standards are being updated for 2025 and will contain this update.

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