Short Sales and Doc Stamps

Department of Revenue Releases Rules for Doc Stamps owed on Short Sales.
The Department of Revenue released an opinion on this issue Tuesday, Sept 23, 2008.
In essence the rule states that Documentary Stamps will be paid on the lower amount, NOT the amount plus the forgiven amount by the lender in an arm's length transaction between three parties.
The Department of Revenue stated " The amount paid by the purchaser, or paid or given by anyone on behalf of the purchaser, for an interest in Florida real property is consideration and subject to tax. However, when the lender cancels indebtedness of the seller, that cancellation is not included in determining the amount of consideration subject to tax under Section 201.02 Florida Statutes.