[WSBARP] Purchaser's assignment of contract and 1% tax

[Josh Grant]

Thanks Jeanne

The balance owing will be paid by the grantee, and the grantor will not pay any of it. Conor is getting debt relief (the seller is consenting to the assignment)  So do you recite the balance owing on the purchaser’s assignment of contract and deed? or do you just put it on the 1% affid.?

Josh

From: Jeanne Dawes 
Sent: Thursday, November 12, 2015 3:53 PM
To: WSBA Real Property Listserv 
Subject: Re: [WSBARP] Purchaser's assignment of contract and 1% tax

Josh,

 

You pay the excise tax on the purchase price, whatever that is.  If it is a gift, it will be exempt, except if the donor is receiving debt relief, the excise tax will be on the balance of the debt amount (i.e. contract balance).  If the donor will continue to pay on the underlying debt, no excise tax.    

 

Jeanne 

 

Jeanne J. Dawes

Attorney at Law

Gore & Grewe, P.S.

103 E. Indiana Avenue, Suite A

Spokane, WA 99207-2317

Voice:  509-326-7500

Fax:      509-326-7503

jjdawes at goregrewe.com

INFORMATION CONTAINED IN THIS E-MAIL TRANSMISSION IS PRIVILEGED AND CONFIDENTIAL. 

 

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Josh Grant
Sent: Thursday, November 12, 2015 3:38 PM
To: wsbar
Subject: [WSBARP] Purchaser's assignment of contract and 1% tax

 

It looks to me in reading WAC 458-61A-104(1)(b)

That when my client signs and records a Purchaser’s assignment of contract and deed, that in order to record the deed he has to pay 1.53% excise tax on the balance owing on the contract.

If so do you recite the balance owing on the contract on the deed?  The LPO forms seem to have it backward because they have us recite the amount owing on the contract on a Seller’s assignment of contract and deed form, but not on a purchaser’s assignment and deed; however the above WAC says that it is only payable on a purchaser’s assignment.???

 

Josh



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