[WSBARP] LLC transfer and real property - !% tax?

[Eric Nelsen]

I like the !% tax in the subject line--looks like you're swearing. :-)

Only transfer of a controlling interest in an entity triggers REET, and then it's based on the full value of the real estate. See WAC 458-61A-101<http://apps.leg.wa.gov/wac/default.aspx?cite=458-61A-101>.

There indeed is a different form to use, available at the same website though--https://dor.wa.gov/get-form-or-publication/forms-subject/real-estate-excise-tax

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

Please Note that We Have Moved. We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel). Our new address is 1417 31st Avenue South, Seattle WA 98144. All other contact information remains the same.

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Josh Grant
Sent: Tuesday, September 12, 2017 2:17 PM
To: wsbar
Subject: [WSBARP] LLC transfer and real property - !% tax?

Two brothers inherited from their parents.  Brother A received real property; Brother B and Brother A each received 1/7th interest in an LLC which holds only real property.

The two brothers wish to realign the property between themselves.

I assume when Brother A gives real property to Brother B because he is getting interests in an LLC in return, that the 1% tax needs to be paid (based on the assessed value of the land he is getting).

I think I saw a discussion here that when Brother B gives Brother A interests in the LLC that that also triggers the 1% tax, again based on the value of the land .

IF so how does one pay the tax?  Is there a special 1% form to be used when LLC membership percentages are being transferred in this situation.

thanks

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