[WSBAPT] REET audit gift exemption.

[John J. Sullivan]

Josh:

I’ve handled several REET audits. I can talk later this afternoon. I was at the EP seminar at home and am heading into the office for the afternoon. 

Off the top, I would respond that contract requires consideration, which negates gift. 

Since it’s too late for a contemporary gift deed, you might prepare an affidavit of gift and acknowledgment of receipt. 

John J. Sullivan
425-452-2400

Sent from my iPhone

> On Nov 3, 2020, at 11:55 AM, Josh Grant <jgrant at accima.com> wrote:
> 
> 
> My client and his brother owned 50% share in a corporation that in turn owned about $500,000 of real property. One brother gifted the other his 50% stock and a REET was  filed with the state in Nov. of 2018.
> The state has advised the client that the REET transaction “has been selected for audit”. The state then stated: “to verify the gift exemption, WAC 458-61A-201(B)(1) please provide the following: A copy of the contract/agreement between the two brothers.
> There was no contract, just an assignment of shares of stock as a gift. 
> I would like to visit with someone who has had experience with this type of audit.
> Josh
>  
> Joshua F. Grant
> <advocates[1].png>
> 
> P. O. Box 619
> Wilbur, WA 99185
> 509 647 5578
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