<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=us-ascii"><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;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
font-size:11.0pt;
font-family:"Calibri",sans-serif;
mso-ligatures:standardcontextual;}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:#0563C1;
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="#0563C1" vlink="#954F72" style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal>I have not read the opinion, but the law is older than I am. There are early cases saying the tax is on the privilege of doing a transaction within the state, measured by the gross selling price. I guess the opinion says the legislature may grant an exemption without disfiguring the tax structure that otherwise absolutely disallows deductions except as allowed by statute. But there are some deductions allowed, eg, bad debt, so however you look at the 250,000 it can I suppose logically be harmonized with the transaction tax, measured by the proceeds after deduction (or exemption), as allowed by legislation. Bottom line, B & O is an obscure tax structure, but no one gets around to replacing it with a straightforward net income tax. It is worst for out of state businesses who can blunder into the system with no hope of understanding it. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>And I know all of this without even reading a boring self-justifying case. How’s them for apples? <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='mso-ligatures:none'>MARTIN SILVER, LLM TAXATION, NYU<o:p></o:p></span></p><p class=MsoNormal><span style='mso-ligatures:none'>ATTORNEY AT LAW<o:p></o:p></span></p><p class=MsoNormal><span style='mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal><span style='mso-ligatures:none'>1420 – Fifth Avenue, Suite 3000<o:p></o:p></span></p><p class=MsoNormal><span style='mso-ligatures:none'>Seattle, Washington 98101<o:p></o:p></span></p><p class=MsoNormal><span style='mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal><span style='mso-ligatures:none'>Tel: 206-224-3461<o:p></o:p></span></p><p class=MsoNormal><span style='mso-ligatures:none'>Fax: 1-206-224-3459<o:p></o:p></span></p><p class=MsoNormal><span style='mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal><span style='mso-ligatures:none'>Web: <a href="mailto:http//silvertaxlaw.com"><span style='color:#0563C1'>http//silvertaxlaw.com </span></a></span><u><span style='color:#0563C1;mso-ligatures:none'><o:p></o:p></span></u></p><p class=MsoNormal><span style='mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><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><span style='mso-ligatures:none'>From:</span></b><span style='mso-ligatures:none'> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Joshua McKarcher<br><b>Sent:</b> Friday, March 24, 2023 10:25 AM<br><b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br><b>Subject:</b> Re: [WSBAPT] Capital gains tax upheld<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;font-family:"Times New Roman",serif'>Always has been. It’s on the <u>gross</u> revenue, just like the real estate tax is on <u>gross</u> sales price. (Any “deductions” are not applicable generally to all parties, like this $250,000 “deduction” on the capital gains tax.) <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>The capital gains tax is on a number <u>net</u> of a deduction granted ($250,000). (These are generalities, of course. There are details, I realize.)<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>But anyhow, it’s all semantics, and the 7 in the majority are the only ones whose opinions matter. But that sentence is a whopper, no matter which side one is on.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>All my best, Josh<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='mso-ligatures:none'>From:</span></b><span style='mso-ligatures:none'> <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:Jeff@bellanddavispllc.com">Jeff@bellanddavispllc.com</a><br><b>Sent:</b> Friday, March 24, 2023 10:15 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> Re: [WSBAPT] Capital gains tax upheld<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>So that means the B & O tax we pay on our income is also an excise tax and not an income tax.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal><b><span style='font-family:"Tahoma",sans-serif;mso-ligatures:none'>W. Jeff Davis<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black;mso-ligatures:none'>BELL & DAVIS PLLC<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black;mso-ligatures:none'>Attorneys at Law</span></b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black;mso-ligatures:none'><br>P.O. Box 510<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black;mso-ligatures:none'>720 E. Washington Street, Suite 105<br>Sequim WA 98382<br>Phone: (360) 683.1129 <br>Fax: (360) 683.1258 <br>email: </span><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;mso-ligatures:none'><a href="mailto:jeff@bellanddavispllc.com">jeff@bellanddavispllc.com</a><span style='color:black'><br></span></span><span style='mso-ligatures:none'><a href="http://www.bellanddavispllc.com/" target="_blank"><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:blue'>www.bellanddavispllc.com</span></a></span><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black;mso-ligatures:none'><br> <br>The information contained in this e-mail message may be privileged, confidential, and protected from disclosure. If you are not the intended recipient, any dissemination, distribution, or copying is strictly prohibited. If you think that you have received this e-mail message in error, please e-mail the sender at </span><span style='mso-ligatures:none'><a href="mailto:info@bellanddavispllc.com"><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:blue'>info@bellanddavispllc.com</span></a></span><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black;mso-ligatures:none'> or call 360.683.1129.</span><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;mso-ligatures:none'><o:p></o:p></span></p><p class=MsoNormal><b><span style='mso-ligatures:none'><o:p> </o:p></span></b></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><span style='mso-ligatures:none'>From:</span></b><span style='mso-ligatures:none'> <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>Joshua McKarcher<br><b>Sent:</b> Friday, March 24, 2023 9:55 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] Capital gains tax upheld<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;font-family:"Times New Roman",serif'>Enjoy this gem. So far, this is my “favorite” sentence:<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>“The capital gains tax is appropriately characterized as an excise because it is levied on the sale or exchange of capital assets, not on capital assets or gains themselves.”<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Tax = [<i>y</i>%] x [Gross gain - $250,000]<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>I will not go on. Best, Josh<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif;mso-ligatures:none'>Joshua D. McKarcher<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif;mso-ligatures:none'>McKarcher Law PLLC<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif;mso-ligatures:none'>537 6th Street<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif;mso-ligatures:none'>Clarkston, WA 99403<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif;mso-ligatures:none'>(509) 758-3345<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif;mso-ligatures:none'>(509) 758-3314 (fax)<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif;mso-ligatures:none'><a href="mailto:josh@mckarcherlaw.com"><span style='color:#0086F0'>josh@mckarcherlaw.com</span></a><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif;mso-ligatures:none'><a href="http://www.mckarcherlaw.com/"><span style='color:#0086F0'>www.mckarcherlaw.com</span></a><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p></div></body></html>