§ 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

Authority

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

Source

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

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