[WSBAPT] Excise tax and gift supplemental

[Mike Winslow]

Oh, my, Marcus. Now you are expecting bureaucrats to act reasonably....
But I could not agree more.
 
As to your form of narrative, it might work. But it is really redundant, as
the REETA is already signed under penalty of perjury, which includes the
recitation of the true sale price.
Good luck!
 
Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com
 
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From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Marcus Fry
Sent: Friday, April 24, 2020 9:54 AM
To: WSBA Probate & Trust Listserv
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] 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
 
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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