[WSBARP] Excise Tax Question

Tue Jul 8 11:32:26 PDT 2014

Thanks, Craig.  I had the same analysis as you…but was hoping for a
different answer.  

Samuel M. Meyler

Attorney at Law 

Mail:  P.O. Box 777 | Redmond, WA 98073-0777

Location:  8201 164th Ave. NE, Suite 200 | Redmond, WA 98052

Tel:  425.881.3680 | Fax:  425.881.1457 | Email:  samuel at meylerlegal.com

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From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Craig Blackmon
Sent: Tuesday, July 08, 2014 11:28 AM
To: wsbarp at lists.wsbarppt.com
Subject: RE: [WSBARP] Excise Tax Question

I suspect the “clearing title” exemption would not pass muster on an
audit, because B was originally liable on the loan and is now being
relieved of that liability in exchange for a quit claim deed.  That is
exactly the sort of consideration that renders the conveyance taxable.
Excise tax is due on one half of the balance of the existing mortgage.

Besides, B was one of the original purchasers and was not added to title
for the sole purpose of financing without any other consideration.
Rather, B and A jointly purchased the home together, so removing B from
title is not “clearing title” as allowed by this exemption.

I don’t see any way to avoid excise tax.  This is a taxable event.

Craig

Craig Blackmon

Attorney at Law

 <http://lawhg.net/> Holmquist & Gardiner, PLLC

1000 2nd Ave, Ste 1770 Seattle, WA  98104

Main: (206) 438-9083   Direct:  (206) 438-9295   

Cell: (206) 369-5949   Fax: (206) 694-4601

Founder and Designated Broker

 <http://quillrealty.com/quill-realtys-mission-statement/> Quill Realty

Every transaction has risk. A lawyer reduces it.

From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Jay Goldstein
Sent: Tuesday, July 08, 2014 11:21 AM
To: 'wsbarp at lists.wsbarppt.com'
Subject: RE: [WSBARP] Excise Tax Question

Looks like WAC 458-61A-215 would apply—clearing or exiting title, and
additions to title

J

Jay A. Goldstein

1800 Cooper Point RD SW NO. 8  |  Olympia, WA 98502  

Telephone 360.352.1970  |  Fax 360.357.0844 |  www.jaglaw.net
<http://www.jaglaw.net/>   

jay at jaglaw.net

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From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Samuel M. Meyler
Sent: Tuesday, July 08, 2014 11:18 AM
To: wsbarp at listserv.nethelps.com
Subject: [WSBARP] Excise Tax Question

Listmates,

I’m trying to determine whether or not there is any excise tax exemption
that applies to the following scenario:

A and B, who are dating but not married, purchase a home together for
$500,000 with a loan of $400,000.  A and B jointly pay the mortgage for 4
years before separating.  A and C start dating, get married and make the
payments on the loan thereafter.  The balance on the loan is now $300,000.
B is to execute a Quit Claim Deed to be taken off of title so that A and C
can refinance the loan into their names.  

Is excise tax due for B’s release of their interest?  Are there any
exemptions that apply?   

Samuel M. Meyler

Attorney at Law 

Mail:  P.O. Box 777 | Redmond, WA 98073-0777

Location:  8201 164th Ave. NE, Suite 200 | Redmond, WA 98052

Tel:  425.881.3680 | Fax:  425.881.1457 | Email:  samuel at meylerlegal.com

NOTICE:

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.

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Bar Association nor its officers or agents. 

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All opinions and comments in this message represent the views of the
author and do not necessarily have the endorsement of the Washington State
Bar Association nor its officers or agents. 

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Information provided on this list should not be considered legal advice.
As with all lists - let the reader beware! No warranties or
representations are made as to the accuracy of any information provided.
All opinions and comments in this message represent the views of the
author and do not necessarily have the endorsement of the Washington State
Bar Association nor its officers or agents. 

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