Bulletin: FL2008009

Date:
September 25, 2008
To:
All Florida Issuing Offices
RE:
Computation of Documentary Stamp Tax on Short Sale Transactions

Dear Associates:

The uncertainty over the proper basis for calculating documentary stamp tax on short sales transactions has been resolved. In a Technical Assistance Advisement dated September 23, 2008, the Department of Revenue issued a formal opinion that in a short sale transaction, documentary stamp tax should be collected on the sales price rather than on the sales price plus the debt forgiven. A copy of the opinion in its entirety is attached.

The unofficial opinion letter from a DOR Tax Specialist dated August 7, 2008, which was attached in a prior bulletin, took the opposite position from the official opinion now being provided. For those transactions wherein documentary stamp tax was over collected, an application for refund (form DR-26) may be downloaded directly from the Florida Department of Revenue's website.

Please contact a Stewart Florida underwriter if you have any questions concerning this topic.

 



Technical Assistance Advisement (Click to View)

 



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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
FL2008008 Computation of Documentary Stamp Tax on Short Sale Transactions
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None