[WSBARP] Real Estate Excise Tax Exemption

[Craig Gourley]

I think it depends on your facts.  Looking at the examples, I think 204 is mostly for changing the ownership form when people already own property together.   Section 201 is for gifts.  So if your JT is being created by adding a person to the title with no consideration passing, I would just use the gift exemption.  For example parent wants to add child as a JT, I think you have a gift as long as the consideration and debt issues are correctly addressed.

Gourley Law Group
Snohomish Escrow
The Exchange Connection

1002 10th Street / PO Box 1091
Snohomish, WA 98291

360.568.5065
360.568.8092  fax
Craig at glgmail.com<mailto:Craig at glgmail.com>

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Jim Doran
Sent: Tuesday, May 17, 2016 11:49 AM
To: WSBA Real Property Listserv <WSBARP at lists.wsbarppt.com>
Subject: [WSBARP] Real Estate Excise Tax Exemption

WAC 458-61!-204 allows an exemption to the REET for "the creation of a ....joint tenancy...if no consideration passes otherwise."  But the WAC then references 458-61A-201 Gifts.  That seems to mean that we can use the Joint tenancy exemption but that we have to use the "supplemental statement as stated in WAC 458-61A-201, Gifts.

WAC 458-61A-201 allows for a Gift of real property as exempt from excise tax if the REET Affidavit has a "supplemental statement approved by the Department completed and attached to the affidavit".  The contents we can handle but I do not know of this "supplemental statement" format or what it means to have the Department approve of it.
Can anyone shed any light on this for me and maybe an example of the "approved format".
Thank you.
James R. Doran
Attorney at Law
100 E. Pine Street -  Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com<mailto:jim at doranlegal.com>
www.doranlegal.com<http://www.doranlegal.com>
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