[WSBAPT] Excise tax and gift supplemental

[Mike Winslow]

Yep. I ran into this with Skagit County Treasurer. This is all about
preventing collusion to defraud the DOR and Counties of their excise tax
revenue.
 
My issue was with a QCD to clear title. We recited consideration of $10.00.
Treasurer said this is a sale for less than assessed value, even though the
deed clearly recited it was to clear title.
 
The options were to prepare the Gift Supplement or a narrative about the
reason for clearing title. I did the narrative with the reasons for clearing
title. It was a stretch to have that approach approved, be the gift
affidavit would have required going back to the Grantor. I signed the
narrative as agent for the Grantee.
 
I expect that if you provide a broker's opinion showing the reduced value
that could work, but that is probably more trouble than the gift affidavit.
 
Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com
 
This message is from an attorney, so it's confidential. If you are not the
intended recipient, it's too late to stop reading this message, but you may
not use it for any improper purpose. Huge Disclaimer available upon request.
 
From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Marcus Fry
Sent: Friday, April 24, 2020 8:57 AM
To: WSBA Probate & Trust Listserv (wsbapt at lists.wsbarppt.com)
Subject: [WSBAPT] Excise tax and gift supplemental
 
Arms-length negotiation of sale of real property.  Purchase price is less
than excise tax.  County is requiring a gift supplement because purchase is
below County tax assessed value.
 
This seems crazy.  Anyone experience this?
 
Marcus J. Fry
Lyon, Weigand & Gustafson, P.S. 
 
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