<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=utf-8"><meta name=Generator content="Microsoft Word 15 (filtered medium)"><style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
font-size:11.0pt;
font-family:"Calibri",sans-serif;}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
span.EmailStyle20
{mso-style-type:personal-reply;
font-family:"Calibri",sans-serif;
color:windowtext;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal>Thanks, John. You and I are in agreement. The wife is a U.S. citizen, files annual returns on her worldwide income and will report the gain. Wife will also execute a FIRPTA certification confirming that she is a U.S. citizen. She shouldn’t have to apply for an exemption.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Escrow wants to withhold pursuant to FIRPTA and title is requiring husband to execute the deed conveying title to the buyers. I think that they are wrong about this but I am looking for other opinions and thoughts on how to address it.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Samuel M. Meyler</span></b><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Meyler Legal, PLLC </span></b><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>1700 Westlake Ave. N., Ste. 200<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Seattle, Washington 98109</span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Tel:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> 206.876.7770<o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Fax:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> 206.876.7771<o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Email:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> </span><a href="mailto:samuel@meylerlegal.com"><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>samuel@meylerlegal.com</span></a><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> </span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>NOTICE:</span></b><o:p></o:p></p><p class=MsoNormal><span style='font-size:8.0pt;font-family:"Arial",sans-serif;color:blue'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:8.0pt;font-family:"Arial",sans-serif;color:blue'>This electronic message contains information which may be Confidential or Privileged and constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act 18 USC 2510. The information is intended to be for the use of the individual or entity named above. If you are not the intended recipient, please be aware that any disclosure, copying, distribution or use of the contents of this information is prohibited. If you received this transmission in error, please notify the sender and delete the copy you received together with any attachments. Thank you.</span><o:p></o:p></p></div><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> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>John J. Sullivan<br><b>Sent:</b> Friday, November 12, 2021 11:27 AM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Cc:</b> wsbapt@lists.wsbarppt.com<br><b>Subject:</b> Re: [WSBARP] FIRPTA Tax<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Sam: <o:p></o:p></p><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Are they filing a joint U.S. return? Been a long time since I worked on FIRPTA issues (my career started reading the daily advance sheets on the Tax Reform Act of 1986 around the time FIRPTA was enacted). <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>IMH first impression escrow should accept a certification from wife. Under WA law conveyance is by execution and delivery of the deed. Recording is not required as between them. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Can she apply for a withholding exemption on the basis that she files a return on her worldwide income, which will report any gain?<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal><a href="https://www.irs.gov/individuals/international-taxpayers/exceptions-from-firpta-withholding">https://www.irs.gov/individuals/international-taxpayers/exceptions-from-firpta-withholding</a><o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal><a href="https://www.irs.gov/individuals/international-taxpayers/format-for-applications">https://www.irs.gov/individuals/international-taxpayers/format-for-applications</a><o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal style='margin-bottom:12.0pt'>John J. Sullivan<o:p></o:p></p><div><p class=MsoNormal>Sent from my iPad<o:p></o:p></p></div><div><p class=MsoNormal><br><br><o:p></o:p></p><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><p class=MsoNormal style='margin-bottom:12.0pt'>On Nov 12, 2021, at 10:43 AM, Samuel M. Meyler <<a href="mailto:samuel@meylerlegal.com">samuel@meylerlegal.com</a>> wrote:<o:p></o:p></p></blockquote></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><p class=MsoNormal><o:p></o:p></p><p class=MsoNormal>Listmates,<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>Happy Friday! I’m looking for some input on the following situation…<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>A Swiss citizen with a green card living in Washington in 2010 and his American wife buy a primary residence together. They decide to move to Switzerland in 2014. They execute a quit claim deed in 2014 from husband and wife, to wife, to create separate property, but they fail to record it (should have hired an attorney!). They did get the assessor to put the property tax bill into wife’s name in 2014. The QCD is properly acknowledged and there is no question that the QCD was signed and notarized in 2014. Swiss husband allows his green card to lapse in 2015. Wife is still a U.S. citizen and paid taxes on the rental income since that time.<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>In 2021 they decide to list the property and learn that they never properly recorded the QCD. Listing goes pending. They get the recorder’s office to record the QCD. Notwithstanding the fact that the QCD was executed and acknowledged in 2014 and is now recorded, escrow is requiring a FIRPTA holdback.<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>Shouldn’t escrow acknowledge that husband actually conveyed the property to wife in 2014 despite the fact that the deed was not recorded? Any thoughts on how to address this? Are there any exemptions that apply? All input is appreciated.<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>Sam<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> </span></b><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Samuel M. Meyler</span></b><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Meyler Legal, PLLC </span></b><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>1700 Westlake Ave. N., Ste. 200</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Seattle, Washington 98109</span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Tel:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> 206.876.7770</span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Fax:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> 206.876.7771</span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Email:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> </span><a href="mailto:samuel@meylerlegal.com"><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>samuel@meylerlegal.com</span></a><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> </span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>NOTICE:</span></b><o:p></o:p></p><p class=MsoNormal><span style='font-size:8.0pt;font-family:"Arial",sans-serif;color:blue'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:8.0pt;font-family:"Arial",sans-serif;color:blue'>This electronic message contains information which may be Confidential or Privileged and constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act 18 USC 2510. The information is intended to be for the use of the individual or entity named above. If you are not the intended recipient, please be aware that any disclosure, copying, distribution or use of the contents of this information is prohibited. If you received this transmission in error, please notify the sender and delete the copy you received together with any attachments. Thank you.</span><o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***<br><br>_______________________________________________<br>WSBARP mailing list<br><a href="mailto:WSBARP@lists.wsbarppt.com">WSBARP@lists.wsbarppt.com</a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp">http://mailman.fsr.com/mailman/listinfo/wsbarp</a><o:p></o:p></p></div></blockquote></div></div></body></html>