[WSBAPT] Controlling Interest Transfer Question

[John J. Sullivan]

The ETA is a little clearer. 

https://taxpedia.dor.wa.gov/documents/current%20eta/3216.2019.pdf

Sent from my iPhone

> On Mar 8, 2021, at 5:27 PM, John J. Sullivan <sullaw at comcast.net> wrote:
> 
> Amy:
> 
> Even though the first two sales transferred a controlling interest, because the third transfer was within the three year look back period, I see no basis in the statute or regulation for the position that the third transfer is not part of the series that transferred control over a period less than a year. 
> 
> “Beginning Jan. 1, 2020, the Legislature expanded the “lookback” period from 12 months to 36 months. Controlling interest transfers can occur over time and in stages through multiple sales. The “lookback” period is the timeframe over which multiple transfers are combined to determine whether a controlling interest has been transferred. See ETA 3216.2019 for additional information.”
> 
> https://dor.wa.gov/taxes-rates/other-taxes/real-estate-excise-tax/real-estate-excise-tax-faqs
> 
> John J. Sullivan
> Sent from my iPhone
> 
>>> On Mar 8, 2021, at 4:30 PM, Amy Allison <aallison at andersonhunterlaw.com> wrote:
>>> 
>> 
>> I’m reaching out to see if anyone knows whether the controlling interest transfer time period “resets” after payment of excise tax.
>>  
>> Scenario would be that Member owns 75% of an LLC. 
>>  
>> Member sells 25% in January.    No excise tax due.
>>  
>> Member sells another 25% in July.  Excise tax is due based on the FMV of the property.
>>  
>> THEN Member sells her last 25% in December.    Is excise tax due again or did the payment of the tax in July reset the 3 year period?
>>  
>>  
>> Amy C. Allison
>> Anderson Hunter Law Firm, P.S.
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