[WSBAPT] Excise tax and gift supplemental

[John J. Sullivan, Esq.]

As long as we're on the topic of REET, when claiming the inheritance
exemption for a distribution from a decedent's revocable trust, are counties
requiring an actual certified death certificate, or are they accepting a
non-certified xerox?

 

John J. Sullivan

 

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
On Behalf Of Marcus Fry
Sent: Friday, April 24, 2020 9:54 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Excise tax and gift supplemental

 

The problem is that the gift statement is not truthful and could create IRS
gift tax reporting issues.  I can see the IRS now, you filled out this form
claiming that you were gifting the excess (difference between assessed and
purchase price).  The response: "the county told me to complete it."

 

I get the point that the DOR's objective is to ensure that nothing
additional is being given in consideration, but it should be use a sworn
affidavit signed by the seller that he/she/they received nothing additional
in consideration beyond the purchase price.  That is the plan I will take
based upon Ms. Feeney's email.  The DOR should just adopt a form for this
type of situation rather than asking for this nonsensical gift supplement.

 

Marcus J. Fry

Lyon, Weigand & Gustafson, P.S. 

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From: wsbapt-bounces at lists.wsbarppt.com
<mailto:wsbapt-bounces at lists.wsbarppt.com>
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Mike Winslow
Sent: Friday, April 24, 2020 9:43 AM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] Excise tax and gift supplemental

 

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 <mailto:Mike at winslegal.com> 

 

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From: wsbapt-bounces at lists.wsbarppt.com
<mailto: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
<mailto: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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