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Posted by Katie on January 22, 2008, 5:10 pm
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>
>
> > >The New Mexico law is interesting because it is not technically a
> > >sales tax. It is really a gross receipts tax that is imposed on the
> > >seller. The seller is allowed to collect reimbursement of the tax
> > >from the purchaser, but is not required to do so, and such
> > >reimbursement appears to be a matter of contract between seller and
> > >purchaser. Even if the purchaser reimburses the seller for the tax,
> > >it is still the SELLER's tax; the purchaser is not the taxpayer.
>
> > (Incredibly comprehensive reply trimmed for space)
>
> > >Katie in San Diego
>
> > Wow. Thank you very much. That was exactly what I was looking for.
>
> Rick, I'm not sure what you were looking for but nothing in Katie's
> response changes my response of January 20th. If the seller pays the
> tax, the tax reduces his proceeds on the sale of the property and
> thus, reduces his gain or increases his loss.
>
> If the buyer pays the tax, the tax increases his basis in the
> property.
>
> Real estate transfer taxes are NOT general sales taxes that are
> deductible (when the taxpayer elects state sales taxes instead of
> state income taxes) on schedule A.
>
Bill, just for clarification, the tax in question is NOT a real estate
transfer tax.
Katie in San Diego
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