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

When purchasing or selling real estate in Virginia, there are several taxes that must be taken into consideration. Each of these taxes varies depending on the county or city in which the property is located. Generally, a buyer will have to pay real estate transfer taxes which are typically calculated on a sliding scale, depending on the purchase price of the property. Additionally, buyers may also have to pay a deed recording fee which is used to cover the cost of officially recording the deed transferring the property. Sellers are required to pay a portion of the real estate transfer taxes, as well as a capital gains tax if they have gained wealth from the sale of the property. Exemptions to the capital gains tax may apply in certain situations, such as if the seller meets a certain income threshold or if the property was a primary residence for at least two of the past five years. It is important for buyers and sellers alike to research the particular taxes within their county or city before engaging in a real estate transaction. An experienced real estate lawyer can also help guide you through the process and ensure proper taxes are paid.

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

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