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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal>Exactly. It could trigger a Form 709 filing, which may not be a big deal, but also a potential problem with the buyer’s basis down the road for depreciation or resale. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Just because you sell for less than assessed value (especially if the market is headed south) doesn’t mean you have eleemosynary intent. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>John J. Sullivan<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></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 <wsbapt-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Marcus Fry<br><b>Sent:</b> Friday, April 24, 2020 9:54 AM<br><b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br><b>Subject:</b> Re: [WSBAPT] Excise tax and gift supplemental<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:#1F497D'>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.”<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 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.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal style='text-align:justify'><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Marcus J. Fry<o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Lyon, Weigand & Gustafson, P.S. <o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Confidentiality: </span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'>This e-mail transmission may contain information which is protected by attorney-client, work product and/or other privileges. If you are not the intended recipient, you are hereby notified that any disclosure, or taking of any action in reliance on the contents, is strictly prohibited. If you have received this transmission in error, please contact us immediately and return the e-mail to us by choosing Reply (or the corresponding function on your e-mail system) and then deleting the e-mail.<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 #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif'> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">mailto:wsbapt-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Mike Winslow<br><b>Sent:</b> Friday, April 24, 2020 9:43 AM<br><b>To:</b> 'WSBA Probate & Trust Listserv'<br><b>Subject:</b> Re: [WSBAPT] Excise tax and gift supplemental<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'>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.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'>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.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'>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.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'>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.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='color:#1F497D'>Michael A. Winslow<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>1204 Cleveland Ave.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Mount Vernon, WA 98273<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Ph. 360-336-3321<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Em. <a href="mailto:Mike@winslegal.com">Mike@winslegal.com</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 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.<o:p></o:p></span></p></div><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif'> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">mailto:wsbapt-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Marcus Fry<br><b>Sent:</b> Friday, April 24, 2020 8:57 AM<br><b>To:</b> WSBA Probate & Trust Listserv (<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>)<br><b>Subject:</b> [WSBAPT] Excise tax and gift supplemental<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><a name="_GoBack"></a>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.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>This seems crazy. Anyone experience this?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style='text-align:justify'><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>Marcus J. Fry<o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>Lyon, Weigand & Gustafson, P.S. <o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>