Relocation programs are commonly structured to take full advantage of tax laws affecting the purchase and sale of employee homes. At the Federal level, in Revenue Ruling 2005-74, the IRS validated tax protection for an amended value program using a deed-in-blank. As welcome as this ruling was, it suddenly brought state tax issues to the forefront because, regardless of any federal tax rulings permitting use of a single deed, some states require two deeds.
Based on new information provided by Worldwide ERC®, changes have recently been made to the two-deed process. Four states and the District of Columbia have been added to the list of two-deed states, bringing the total to 13*: Delaware, Hawaii, Illinois, Indiana, Kentucky, Nevada, New Hampshire, New York, Oklahoma, Pennsylvania, Rhode Island, Texas, and Washington.
* Plus the District of Columbia, Virgin Islands, and Puerto Rico