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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D'>Here’s what the Department of Revenue has to say on the matter: <a href="http://dor.wa.gov/content/FindTaxesAndRates/OtherTaxes/tax_estatetaxfaq.aspx#oosproperty">http://dor.wa.gov/content/FindTaxesAndRates/OtherTaxes/tax_estatetaxfaq.aspx#oosproperty</a><o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Intangible assets, such as interests in an LLC, are considered to be located in the owners’ state of domicile.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>I believe an LLC established to hold and operate one or more rental properties is established for a “true business purpose” since operating a rental is a business activity. The DOR form for “Apportionment of Out of State Property” uses the example of an LLC-owned family vacation home as a non-business activity.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Best,<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Sara<o:p></o:p></span></p><div><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><img border=0 width=34 height=40 id="Picture_x0020_1" src="cid:image001.jpg@01D2E6B2.F9107C20" alt="cid:image001.jpg@01D1F8A6.19C81E60"><o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Century",serif;color:#1F497D'>Sara D. Longley, J.D., LL.M.</span><span style='font-family:"Century",serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Century",serif;color:#1F497D'>Attorney at Law<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Century",serif;color:#1F497D'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Century",serif;color:#1F497D'>1734 NW Market Street<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Century",serif;color:#1F497D'>Seattle, WA 98107<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Century",serif;color:#1F497D'><a href="tel:%28206%29%20434-5644" target="_blank"><span style='color:#1F497D;text-decoration:none'>(206) 434-5644</span></a><o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Century",serif;color:#1F497D'><a href="mailto:Sara@longley-law.pro" target="_blank"><span style='color:#0563C1'>Sara@longley-law.pro</span></a><o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Century",serif;color:#1F497D'><a href="http://www.longley-law.pro/" target="_blank"><span style='color:#0563C1'>www.longley-law.pro</span></a><o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>This email is intended only for the individual to whom it is addressed and may contain information that is privileged, confidential, and/or exempt from disclosure. If you have received this message in error, please inform the sender by telephone or reply email and delete this message and all attachments. Thank you.<o:p></o:p></span></p></div><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Karin Treadwell<br><b>Sent:</b> Friday, June 16, 2017 3:01 PM<br><b>To:</b> wsbapt@lists.wsbarppt.com<br><b>Subject:</b> [WSBAPT] Washington estate tax question<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Out of state couple own a commercial property in Washington via a Washington LLC. They also own two Washington residential properties as rentals, and for liability purposes would like to transfer these to Washington LLCs.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Assuming they have established domicile out of state, wouldn’t the value of the business interests (whether held by the couple personally or their RLT) be considered an intangible asset and thus out of state property for Washington estate tax purposes? <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>The DOR website emphasizes that whether an ownership interest is determined to be an intangible or tangible asset is based on whether it is operating for a “true business purpose.” <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Any feedback on how DOR is defining a true business purpose? Operating a commercial building? What about putting rental homes into an LLC for liability protection?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>Karin<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>Karin S. Treadwell</span><span style='font-size:12.0pt'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>Sayre Law Offices, PLLC</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>1417 31<sup>st</sup> Ave S</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>Seattle WA 98144-3909</span><o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>phone 206-625-0092</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>fax 206-625-9040<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:16.0pt;font-family:"Times New Roman",serif;color:red'>Please Note that We Have Moved<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:16.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></b></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel).<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Our new address is 1417 31st Avenue South, Seattle WA 98144<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></b></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>All other contact information will remain the same<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>