[WSBARP] Low sale price - R.E. Excise Tax

[Ronald L. Coleman]

Josh,

I had one and we gave the assessor an affidavit signed by both parties with details to confirm there   was no other consideration, etc.

Ron

Ronald L. Coleman
Direct 253-238-5129 - rcoleman at dpearson.com
Davies Pearson, P.C.
ATTORNEYS AT LAW
920 Fawcett Avenue / PO Box 1657, Tacoma, WA 98401
253-620-1500 | Fax 253-238-5158 | www.dpearson.com<http://www.dpearson.com>

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Josh Grant
Sent: Tuesday, October 18, 2016 2:26 PM
To: wsbar
Subject: [WSBARP] Low sale price - R.E. Excise Tax

I have a client who is purchasing real estate (written E.M. agreement) for $15,000. The county assessed FMV is about $110,000.  Buyer and seller are not related parties. No other consideration is being paid. The seller had tried unsuccessfully to sell these bare lots for several years, and just decided to get rid of them at what is clearly a very low price.

Title company says the County will “red tag “ this one. (which I take it means that they won’t accept the stated sale price for excise tax purposes).

Does the County get to charge excise tax on its FMV assessed value, notwithstanding this is a bona fide sale for the smaller amount?  Is there a procedure (buyer and seller doing declarations etc) to cause the county to accept the actual sale price for excise tax purposes?

thanks

Josh

Joshua F. Grant, PS
Attorney at Law
P. O. Box 619
Wilbur, WA 99185
tel 509 647 5578
fax 509 647 2734

This e-mail is covered by the Electronic Communications Privacy Act, 18 U.S.C. secs. 2510-2521, and is legally privileged and confidential. If the reader of this message is not the intended recipient, the reader is hereby notified that any unauthorized review, dissemination, distribution, or copying of this message is strictly prohibited. If you are not the intended recipient, please contact the sender by reply e-mail or call the sender at (800) 439-1112, and destroy all copies of the original message.

IRS regulations require us to advise you that, unless otherwise specifically noted, any federal tax advice in this communication (including any attachments, enclosures, or other accompanying materials) was not intended or written to be used, and it cannot be used, by any person for the purpose of avoiding tax-related penalties; furthermore, this communication was not intended or written to support the promotion or marketing of any of the transactions or matters it addresses. Please call us for additional information.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20161018/2fff70f8/attachment.html>