Is the transfer tax the same as the income tax for which I am exempt or do I still have to pay that? I have read different estimates from between 1 and 2% which will be quite substancial so I am hoping that this is also exempt (or the same thing).
I understand that I am exempt from Federal tax on the sale but don't know about any other taxes.
As far as Federal income taxes the rule is if you have lived in the property for any 2 of the last 5 years you can exclude up to $500k in GAIN not sales price but gain from you federal income tax.
It is not a 1 time deal. It used to be but under Clinton he set this up so you can do this every 2 years and avoid Federal income taxes on the gain from the sale of your primary home.
Check with your accountant if you qualify.
there will be a transfer fee tax on the HUD that you will pay at closing.
Also check with your accountant if your state will give you an exemption from any state tax.