<html><head><meta http-equiv="content-type" content="text/html; charset=utf-8"></head><body dir="auto">Josh:<div><br></div><div>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. </div><div><br></div><div>Off the top, I would respond that contract requires consideration, which negates gift. </div><div><br></div><div>Since it’s too late for a contemporary gift deed, you might prepare an affidavit of gift and acknowledgment of receipt. </div><div><br></div><div>John J. Sullivan</div><div>425-452-2400</div><div><br><div dir="ltr">Sent from my iPhone</div><div dir="ltr"><br><blockquote type="cite">On Nov 3, 2020, at 11:55 AM, Josh Grant <jgrant@accima.com> wrote:<br><br></blockquote></div><blockquote type="cite"><div dir="ltr">
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<div><font size="4">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.</font></div>
<div><font size="4">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.</font></div>
<div><font size="4">There was no contract, just an assignment of shares of stock
as a gift. </font></div>
<div><font size="4">I would like to visit with someone who has had experience with
this type of audit.</font></div>
<div><font size="4">Josh</font></div>
<div> </div>
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<div><strong><span style="FONT-SIZE: 18pt; COLOR: #004080">Joshua F.
Grant</span></strong><span style="COLOR: #004080"><br></span><span style="COLOR: black"><div><advocates[1].png></div><br></span><span style="FONT-SIZE: 11pt; COLOR: #004080">P.
O. Box 619<br>Wilbur, WA 99185<br>509 647 5578</span><span style="COLOR: black"><o:p></o:p></span></div></div></div></div></div></div>
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