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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">I think you can probably take the partial exemption, but you can call DOR and probably get a shockingly straightforward and very helpful answer, honestly.<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">Go here:
<a href="https://app.leg.wa.gov/WAC/default.aspx?cite=458-61A-202">https://app.leg.wa.gov/WAC/default.aspx?cite=458-61A-202</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">Read (4) re nonprorata to see if it helps. May not given the way this was structured, but I don’t think DOR will split this hair.<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">And especially read (5)(c) which should “get you there” (probably, maybe
</span><span style="font-size:12.0pt;font-family:"Segoe UI Emoji",sans-serif">😉</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif">) because it does discuss “taking title directly from the [PR]” even though in a section about subsequent
transfers . . . <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:10.0pt;font-family:"Open Sans",sans-serif;color:black;background:white">(c) <b>Example 4.</b> Sheri and her two sisters inherit their father's home, valued at $180,000, in equal portions. Sheri wants sole ownership
of the home, but there are not "in-kind" assets of sufficient value to be distributed by the personal representative to her two sisters in a nonpro rata distribution. In order to take title directly from the personal representative, Sheri pays each of her
sisters $60,000, and they quitclaim their right to the property under the will. Real estate excise tax is due on the total of $120,000 paid for the property.</span><span style="font-size:10.0pt;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>
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<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>Eric Nelsen<br>
<b>Sent:</b> Wednesday, November 8, 2023 6:06 PM<br>
<b>To:</b> 'WSBA Probate & Trust Listserv' <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] Sale of house to heir with credit for inheritance share - and REET<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Estate sells house to an heir for defined Purchase Price of $500,000, and provides a credit of $50,000 against the Purchase Price as a partial distribution of inheritance.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">What should Real Estate Excise Tax be calculated upon?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<ol style="margin-top:0in" start="1" type="1">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo3">$450,000, because the consideration received is only that? BUT: Do the parties list $450,000 as the Purchase Price on the REET Affidavit, despite the prima facie specification of $500,000
as the Purchase Price? Or does escrow valiantly attempt to list $500,000 as the Purchase Price, list an exemption for $50,000 and cite the inheritance WAC and provide the proper documentation, and then cross fingers and pray it doesn’t get screwed up?<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo3">$500,000, because it’s better to pay more tax than it is the deal with the deed getting bounced because it looks funny to somebody at the recorder’s office?<o:p></o:p></li></ol>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The form does seem to allow for a partial exemption, but I’ve never attempted it. Does it actually work?<o:p></o:p></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><img border="0" width="366" height="231" style="width:3.8154in;height:2.4047in" id="Picture_x0020_1" src="cid:image001.png@01DA1270.815DDBA0"></span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Sincerely,<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">Eric<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">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Sayre Law Offices, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">1417 31st Ave South<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Seattle WA 98144-3909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><a href="mailto:eric@sayrelawoffices.com">eric@sayrelawoffices.com</a><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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