NYS Mortgage Recording Tax

[acamacho72]

What is the name of your state?What is the name of your state? New York

My husband and I currently own our home together. We refinanced two years ago to a 15 year mortgage and did not have to again pay the NYS Mortgage Recording Tax because our mortgage company filed a CEM. I plan to refinance now for a term of 30 years under my name only to take my husband off the loan and the title. The Mortgage Company says I will have to pay NY Mortgage Recording tax on the entire amount of the refinancing because we are changing owners and they cannot file a CEM with New York State. Since my name is on the original loan and title, how can they claim I am changing owners? Why can they not file a CEM with New York State? Do I really have to pay Mortgage Recording Tax again on the same funds?

 

[seniorjudge]

"I plan to refinance now for a term of 30 years under my name only to take my husband off the loan and the title. The Mortgage Company says I will have to pay NY Mortgage Recording tax on the entire amount of the refinancing because we are changing owners and they cannot file a CEM with New York State. Since my name is on the original loan and title, how can they claim I am changing owners?"

This is really a question for a New York tax CPA. I can tell you, however, when you transfer the ownership out of you and your husband and put it into just you, then that is a change of owners.

 

[You Are Guilty]

I can tell you, however, when you transfer the ownership out of you and your husband and put it into just you, then that is a change of owners.

Ding ding ding ding! We have a winner!

Is it fair? No.

Does the state bleed residents for every penny they can? Yes.

Can you deduct it from your federal return? Maybe - speak to your CPA.

 

[acamacho72]

Reply

Thank you both for your assistance. I will consult with a CPA in New York to see if anything can be done.