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<div dir="ltr">Ugh. This is what I get for replying on iPhone when I’m supposed to be not working. Your email BEGINS quite literally “<span style="font-family: Calibri, sans-serif; font-size: 15.546666145324707px; color: rgb(225, 225, 225); background-color: rgb(20, 20, 20); display: inline !important;">Co-habitants
go on title of property together . . . <span id="ms-outlook-ios-cursor"></span></span>” Sigh . . . </div>
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<div dir="ltr">So the only thing I can do to salvage my sloppy "contribution" is to say that if you have not looked at the insanely tiny print on the back (or "instructions to") the REETA GIFT SUPPLEMENT, do so. </div>
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<div dir="ltr">There are several examples about those who share in the mortgage payments even if not legally obligated on them. </div>
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<div dir="ltr">Even if this situation does not appear to involve a gift of equity as those examples may be "aimed at," I suspect the examples will help guide your analysis. </div>
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<div dir="ltr">Then call the phone number that is (maybe, I'm thinking?) in the paragraph about what to do if there is a refinancing occurring simultaneously with the gift of equity. </div>
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<div dir="ltr">Again, I've always had great help from that department and have never waited on hold for a real human. </div>
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<div dir="ltr">Again my apologies for my poor reading skills! </div>
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<div dir="ltr">Best, Josh </div>
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Joshua D. McKarcher</p>
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<span dir="ltr" style="color: currentcolor;"><span dir="ltr">Clarkston, WA 99403</span></span></p>
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<span dir="ltr" style="color: currentcolor;"><span dir="ltr">(509) 758-3314</span></span><span> </span>(fax)</p>
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<div id="divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com> on behalf of samuel@meylerlegal.com <samuel@meylerlegal.com><br>
<b>Sent:</b> Tuesday, December 27, 2022 11:36 PM<br>
<b>To:</b> 'WSBA Probate & Trust Listserv' <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] REET Question/Exemption
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Sorry, perhaps my email was unclear. Borrower and Ex are both on title and have been since the purchase. Lender did not want Ex as a party to the loan because of their credit but they are still on title and Lender allowed it. Ex needs to be removed from
title, which is triggering the filing of a REETA.</p>
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<b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">Samuel M. Meyler</span></b></p>
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<b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">Meyler Legal, PLLC </span></b></p>
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<span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">1700 Westlake Ave. N., Ste. 200</span></p>
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<span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">Seattle, Washington 98109</span></p>
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<b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">Tel:</span></b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;"> 206.876.7770</span></p>
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<b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">Fax:</span></b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;"> 206.876.7771</span></p>
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<b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">Email:</span></b><span style="font-size: 10pt; 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></p>
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<b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Joshua McKarcher<br>
<b>Sent:</b> Tuesday, December 27, 2022 7:36 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] REET Question/Exemption</p>
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What transaction is occurring that triggers the filing of a REETA at all? A refinancing with cash out maybe? But is that effectuating a change in title? It seems the title has always been in one name and is staying in that name. </p>
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So I’m just unclear what change in title is occurring, as opposed to the settlement of potential legal claims for contributions to equity or what have you. If those trigger excise tax, then that is simply an occasion I've not encountered. </p>
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But whenever I've called the DOR line (the number to which is buried somewhere on the gift supplement form) with an odd REETA situation, a very smart and helpful agent has answered and given me a helpful analysis and offered additional information such as what
documentation would be required to support the exemption in an audit. </p>
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Best, Josh </p>
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<p style="margin:0in"><span style="font-size:12.0pt; font-family:"Times New Roman",serif">Joshua D. McKarcher</span></p>
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<p style="margin:0in"><span style="font-size:12.0pt; font-family:"Times New Roman",serif">McKarcher Law PLLC</span></p>
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<p style="margin:0in"><span style="font-size:12.0pt; font-family:"Times New Roman",serif">537 6th Street</span></p>
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<p style="margin:0in"><span style="font-size:12.0pt; font-family:"Times New Roman",serif">Clarkston, WA 99403</span></p>
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<p style="margin:0in"><span style="font-size:12.0pt; font-family:"Times New Roman",serif">(509) 758-3345</span></p>
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<p style="margin:0in"><span style="font-size:12.0pt; font-family:"Times New Roman",serif">(509) 758-3314 (fax)</span></p>
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<p style="margin:0in"><span style="font-size:12.0pt; font-family:"Times New Roman",serif"><a href="mailto:josh@mckarcherlaw.com"><span style="color: rgb(0, 134, 240);">josh@mckarcherlaw.com</span></a></span></p>
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<p style="margin:0in"><span style="font-size:12.0pt; font-family:"Times New Roman",serif"><a href="http://www.mckarcherlaw.com/"><span style="color: rgb(0, 134, 240);">www.mckarcherlaw.com</span></a></span></p>
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<b>From:</b> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>> on behalf of
<a href="mailto:msilver@wolfenet.com">msilver@wolfenet.com</a> <<a href="mailto:msilver@wolfenet.com">msilver@wolfenet.com</a>><br>
<b>Sent:</b> Tuesday, December 27, 2022 6:30 PM<br>
<b>To:</b> 'WSBA Probate & Trust Listserv' <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBAPT] REET Question/Exemption </p>
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Do you think this is it?</p>
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WAC 458-61A-204</p>
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…5) The sale of an interest in real property from one or more joint tenants or tenants in common to remaining tenants or to a third party is a taxable transaction. The taxable amount of the sale is the total of the following:</p>
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(a) Any consideration given; and</p>
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(b) Any consideration promised to be given, including the amount of any debt remaining unpaid on the property at the time of sale multiplied by that fraction of interest in the real property being sold.</p>
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<b>From:</b> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b><a href="mailto:samuel@meylerlegal.com">samuel@meylerlegal.com</a><br>
<b>Sent:</b> Tuesday, December 27, 2022 3:47 PM<br>
<b>To:</b> 'WSBA Real Property Listserv' <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>>;
<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a><br>
<b>Subject:</b> [WSBAPT] REET Question/Exemption</p>
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Listmates,</p>
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Co-habitants go on title of property together but only one of them (“Borrower”) is liable on the note due to the lender. Borrower makes payments on the loan directly while the other co-habitant (“Ex”) makes payments to the Borrower for half of the loan payment.
There is nothing in writing expressly stating that Ex is indebted to Borrower for 50% of the mortgage payment, but that is essentially what Ex pays to borrower for several years.
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Borrower and Ex call it quits and wish to remove Ex from title. There is some equity in the property now. Borrower is willing to pay Ex 50% of the equity value and excise tax would be due on that amount. I am questioning whether excise tax should also be
due on 50% of the underlying debt given that the Ex was never personally liable on the note due to the bank. It could appear to someone as though Ex was liable to Borrower for half the mortgage and has now been relieved of that liability.
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Have you dealt with this before? Would excise tax only be due on the value of the equity that Borrower pays Ex for? What exemptions apply? Thanks for the input.</p>
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Sam</p>
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<b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;"> </span></b></p>
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<b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">Samuel M. Meyler</span></b></p>
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<b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">Meyler Legal, PLLC </span></b></p>
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<span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">1700 Westlake Ave. N., Ste. 200</span></p>
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<span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">Seattle, Washington 98109</span></p>
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<b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">Tel:</span></b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;"> 206.876.7770</span></p>
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<b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">Fax:</span></b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;"> 206.876.7771</span></p>
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<b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">Email:</span></b><span style="font-size: 10pt; 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></p>
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<b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;">NOTICE:</span></b></p>
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If you received this transmission in error, please notify the sender and delete the copy you received together with any attachments. Thank you.</span></p>
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