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<p class="MsoNormal"><a name="_GoBack"></a><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Rich:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Setting aside issues of asset v. stock sale transaction and possible creditor issues, XYZ could deed 50% of the real estate out to your client (or you could
first make ABC 50% shareholder of XYZ) as a mere change in identity (458-61A-211) and then sell ABC the other 50%. I recognize that will be 3 deeds (XYZ to client, client to ABC, sale of XYZ 50% to ABC) and 3 recording fees, but only excise tax on the sale
of 50%. You could try to collapse those deeds into a single deed transaction where you are reciting all of this, but in my experience, county will not allow it.<o:p></o:p></span></p>
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<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"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">Lyon, Weigand & Gustafson, P.S.
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P.O. Box 1689 <br>
Yakima, Washington 98907 <br>
Telephone: (509) 248-7220 <br>
Facsimile: (509) 575-1883 <o:p></o:p></span></p>
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<p class="MsoNormal" style="text-align:justify"><b><u><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">NOTICES:<o:p></o:p></span></u></b></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>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<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""> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Rich McEntee<br>
<b>Sent:</b> Monday, November 16, 2020 9:03 AM<br>
<b>To:</b> wsbapt@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBAPT] Excise tax exemption question<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Good morning <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">This is a cross post from another listserve. Hopefully not too many already received it. <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="background:white">I am looking for a bit of guidance. </span><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Client (an individual) is 100% owner of ABC corporation. Client is also owns 50% interest in XYZ corporation. <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">XYZ corporation owns real estate. XYZ corporation would like to sell/transfer its entire interest in real estate to ABC corporation. ABC corporation will pay fair market value to XYZ as part of the transfer. Is there a partial excise tax
exemption available due to the fact that the client has an ownership position in each entity? The client is essentially buying 50% of the real estate from himself.<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Thank you, in advance for your guidance.<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Rich<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b><u><span style="font-size:13.5pt;font-family:"Copperplate Gothic Bold","sans-serif"">RICH McENTEE</span></u></b><span style="font-size:9.0pt;font-family:"Helvetica","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:13.5pt;font-family:"Copperplate Gothic Bold","sans-serif"">McENTEE LAW OFFICE</span></b><span style="font-size:9.0pt;font-family:"Helvetica","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:13.0pt;font-family:"Copperplate","serif""><a href="x-apple-data-detectors://1/1"><span style="color:black">3800 Bridgeport Way W, Ste A411</span></a></span><span style="font-size:13.0pt;font-family:"Helvetica","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:13.0pt;font-family:"Copperplate","serif""><a href="x-apple-data-detectors://1/1"><span style="color:black">University Place, WA 98466</span></a></span><span style="font-size:13.0pt;font-family:"Helvetica","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:13.0pt;font-family:"Copperplate","serif""><a href="tel:253.227.9894"><span style="color:black">253.227.9894</span></a>(m)</span><span style="font-size:13.0pt;font-family:"Helvetica","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Copperplate","serif""><a href="mailto:jrmcentee@gmail.com">jrmcentee@gmail.com</a></span><span style="font-size:9.0pt;font-family:"Helvetica","sans-serif""> <o:p></o:p></span></p>
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