Will i have to pay transfer taxes for building a house on land that i already own? (loan, refinance)

[Shawn MacAnanny]

Just something someone mentioned and i had never thought about. i own the 2 acre lot and it was gifted to me by my mother so there was no transfer tax there. i am building a house currently on the lot, its about halfway done and i am wondering will i need to pay transfer taxes at any point on it? My wife and i are first time home buyers and i live in Delaware, i cant seem to find a direct answer to my situation anywhere. My builder does not require a construction loan so we are doing a refinance through the bank when the house is complete. What could i potentially owe in taxes for this?

[Bill Keegan]

Originally Posted by Shawn MacAnanny

Just something someone mentioned and i had never thought about. i own the 2 acre lot and it was gifted to me by my mother so there was no transfer tax there. i am building a house currently on the lot, its about halfway done and i am wondering will i need to pay transfer taxes at any point on it? My wife and i are first time home buyers and i live in Delaware, i cant seem to find a direct answer to my situation anywhere. My builder does not require a construction loan so we are doing a refinance through the bank when the house is complete. What could i potentially owe in taxes for this?

I doubt it. There is no transfer of ownership, just an improvement being built by the same owner.

However, since I am in NJ and not Deleware, I would still recommend calling whomever assesses those transfer taxes (state? municipality?) and just ask them directly.

[Shawn MacAnanny]

thanks! thats what i was thinking. it was just something i hadnt thought of. the land was gifted mother to son and wife, so we wont have transfer taxes on that, and we are first time home buyer but delaware doesnt offer any incentives for that in kent county. i will ask them tuesday i guess.