[WSBAPT] REETA implications?

[William O. Etter]

Jeff:

Take a look at WAC 458-61A-202(5)(c) (example 4).  Assuming there isn't sufficient cash make nonpro rata distributions, any money the brother must pay his siblings to buyout their interests will be subject to real estate excise tax.


William O. Etter
Principal | Witherspoon * Kelley
WOE at witherspoonkelley.com<mailto:WOE at witherspoonkelley.com> | Attorney Profile <http://www.witherspoonkelley.com/william-etter> | vCard<http://www.witherspoonkelley.com/s/woe.vcf>

[WK]

422 W. Riverside Ave, Ste 1100
Spokane, WA 99201
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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of jeffrey winter
Sent: Tuesday, June 19, 2018 4:13 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] REETA implications?

Listmates,

3 kids are inheriting real estate from a parent.  Initially, they wanted to sell it, but now the brother wants to buy out his siblings' interest in the property.  There is no debt on the property.  There are some bank accounts that might be used for nonprorata distribution purposes, but it's not clear that they are enough.

If the three enter into a TEDRA agreement that provides for this transaction, will there nevertheless be excise tax due if money changes hands?

Thanks in advance,

Jeff Winter
Jeffrey D. Winter, P.S.
604 N. Main Street
Ellensburg, WA 98926
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