[WSBARP] Excise Tax Question

[Bickel, Dwight]

Additional response to the additional information posted by Doris.

There is no real estate sales tax related to the 2011 refinance; there was no transfer of real estate.

Doris stated that the 2011 mortgage was signed only by the parents. Therefore it encumbers only the interest owned by the parents and it is not a lien on the interest held by the child as a tenant in common. The issue about debt relief is based upon the debtors on the promissory note, not the grantors on the Deed of Trust. If the child did not sign as borrower, there are two reasons why the present transfer is exempt. First, there is no debt relief related to the 2016 deed. [WAC cited previously] because the child is not a borrower, and the only mortgage is not an encumbrance upon the child's title. There is no consideration received by the child for that deed. Therefore, there is no excise tax due for that deed.
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