[WSBAPT] Is an assumption a refinance for excise tax purposes?

[Heather deVrieze]

Essentially, it is part gift (the equity) and part sale (the assumed mortgage amount). You use the gift exemption for the gift portion and pay excise tax on the underlying debt assumed.

Heather

Heather S. de Vrieze
Attorney-at-Law
[cid:image001.jpg at 01D013C2.30F35160]
3909 California Avenue SW
Seattle, WA 98116-3705
(206)938-5500
heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>
www.westseattlelaw.com<http://www.westseattlelaw.com/>
Click here to connect with de Vrieze | Carney on Facebook:   [FB Logo] <https://www.facebook.com/DeVriezeCarney>

CONFIDENTIAL & PRIVILEGED. This e-mail message may contain legally privileged and/or confidential information.  If you have received this e-mail in error, please notify the sender immediately and delete all copies of this e-mail message and any attachment.

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Lisa E Schuchman
Sent: Tuesday, August 08, 2017 1:22 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Is an assumption a refinance for excise tax purposes?

I'm making a gift transfer of real estate from parents to themselves, a child, and his spouse (the owners will be the two marital communities).  The parents are gifting all of their equity and the younger couple are doing a non-recourse assumption of the mortgage and will pay it going forward.

Does anyone have an opinion on how an assumption reads for excise tax purposes? WAC 458-61A-201 refers to a refinance of the debt, but not an assumption.

Thanks.

Lisa E. Schuchman
206-960-4212
www.lisaschuchman.com<http://www.lisaschuchman.com/>

I learn, I give. - Gloria Steinem

NOTE: I do not use encrypted email.  Messages sent to or from my office via email are not secure and may not be protected by attorney-client privilege. This email address is not monitored at all times.  If your matter is urgent, please phone my office during regular business hours.

Any tax advice included in this document and its attachments was not intended or written to be used, and it cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code.
P  Please consider the trees before printing this document

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20170808/0ef3a502/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 7108 bytes
Desc: image003.jpg
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20170808/0ef3a502/image003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 5137 bytes
Desc: image004.png
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20170808/0ef3a502/image004.png>