[WSBARP] Excise Tax on Transfer & Lease Question
RebeccaWiess
rwiess at foxinternet.net
Thu May 29 08:00:05 PDT 2014
These title transfer per se don’t incur tax, but there is also an issue on
any debt on the property. If there is debt, and if the parents have and
will continue to make the debt payments, then an equity transfer to the
kids is not taxed. If the kids are relieving the parents of a portion of
the debt payments, that will make the transaction taxable.
Rebecca K. Wiess
Attorney at Law
1420 5th Avenue, Suite 3775
Seattle, WA 98101
Phone 206 622-4425
Fax 206 622-9021
rwiess at foxinternet.net
_____
From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Josh Grant
Sent: Wednesday, May 28, 2014 5:22 PM
To: wsbarp at lists.wsbarppt.com
Subject: Re: [WSBARP] Excise Tax on Transfer & Lease Question
If parents decide to put real property into their LLC, in the same
percentage as their real property ownership.. and later they decide to
gift a minority percentage of the membership to their adult kids for
estate planning purposes, is that OK ... no 1% tax...
and do they have to wait a certain period of time to transfer that
membership in the LLC?
thanks
Joshua F. Grant
Attorney at Law
P.O. Box 619
Wilbur, WA 99185
t 509 647 5578
f 509 647 2734
----- Original Message -----
From: Eric <mailto:Eric at sayrelawoffices.com> Nelsen
To: wsbarp at lists.wsbarppt.com
Sent: Wednesday, May 28, 2014 4:51 PM
Subject: RE: [WSBARP] Excise Tax on Transfer & Lease Question
Yes, exempt from excise tax so long as the grantors own the LLC in the
same proportion as they own the property--mere change in identity or form,
WAC <http://apps.leg.wa.gov/wac/default.aspx?cite=458-61A-211>
458-61A-211(2).
Sincerely,
Eric
Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1320 University St
Seattle WA 98101-2837
phone 206-625-0092
fax 206-625-9040
From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Jodi Bourg
Sent: Wednesday, May 28, 2014 4:43 PM
To: Listserv, WSBARP
Subject: [WSBARP] Excise Tax on Transfer & Lease Question
Mates,
I've got HCs one of whom owns the home in King County in which they live.
They are planning to rent it out. So far, so good. They want to quit
claim this property to their LLC. I know that quit claiming from an LLC
to its members exempts it from paying excise tax, but does it work the
other way? I imagine the WACs have the answer somewhere, but I was hoping
that someone would know off the top of their head.
The other part of this question has to do with the fact that HCs' home is
waterfront property and they are concerned about liability against, for
lack of a better term, an accident having to do with someone falling in
the water or worse. Has anyone dealt with this concern in a lease and if
so, would you be willing to share it with me.
Many thanks.
Jodi Bourg
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Bar Association nor its officers or agents.
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As with all lists - let the reader beware! No warranties or
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All opinions and comments in this message represent the views of the
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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
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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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