Dear Listmates:

I have a question about what to declare as the value on the Declaration of Value form under the following circumstances.

Husband and Wife form an LLC and then transfer real estate they own to the LLC. Husband and Wife hold 100% of the interest in the LLC.  The LLC makes no monetary payments to H+W in exchange for the property. This transfer is exempt from real estate transfer tax under Iowa Code § 428A.2(15), but pursuant to Iowa Admin. Code § 701-79.5(428A), they still have to file a DOV form. The Recorder’s office will not record the deed until the DOV is filed.

What should be declared as the value for the total amount paid on the DOV form? Fair market value? Assessed value? No value? $1?

Christopher A. Jones

Attorney at Law

Neuzil, Sanderson & Sigafoose, P.C.

119 Wright Street, P.O. Box 1607

Iowa City, Iowa  52244

(319) 337-3167 (phone)

(319) 356-6153 (fax)