How is the intangible tax typically noted on a Closing Disclosure Statement?

The intangible tax is typically noted on the Closing Disclosure Statement as a debit to the seller and a credit to the buyer. This accounting reflects the fact that the seller is generally responsible for payment of the intangible tax at the time of closing, fulfilling their obligations related to the sale of the property. The buyer, on the other hand, receives a credit for this amount, which effectively reduces the amount they need to bring to the closing.

In real estate transactions, the treatment of various taxes and fees can vary, but intangible tax is specifically categorized this way due to its nature as a transfer tax. Understanding this allocation is essential for ensuring that both parties are clear on their financial responsibilities during the closing process.

In contrast, options that suggest a debit to the buyer or as an expense to both parties do not accurately reflect the standard practice for the intangible tax's treatment on a Closing Disclosure Statement. The requirement for clear delineation of costs is important for transparency and clarity in real estate transactions.