What types of taxes will I have to pay when I buy or sell real estate?

When buying or selling real estate in South Carolina, there are various taxes that must be taken into consideration. These include income taxes, sales and use taxes, as well as transfer taxes. Income tax is paid to the Internal Revenue Service and is based on the net profits earned from the sale of a property. This tax is paid by the seller and is part of the tax return due at the end of the year. Sales and use taxes are paid to the South Carolina Department of Revenue and are based on the purchase price of the property. This tax is due at closing and must be paid in full with the purchase of the property. Transfer taxes are assessed on each county and are usually based on a flat rate for every $1,000 of the purchase price. This tax is paid by the buyer and is due at closing. All of these taxes must be taken into account when buying or selling real estate in South Carolina. It is important to understand the taxes and fees associated with the transaction so you can plan accordingly and make sure your closing costs are covered.

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What types of taxes will I have to pay when I buy or sell real estate?

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