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

[Bryce Dille]

Unless a 50% interest is being conveyed there is no tax on transfer of LLC interest but here would be tax on transfer of interest in fee simple owned property based on value of consideration received for it.



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Bryce H. Dille | Attorney at Law

P: 253.848.3513| F: 253.845.4941
317 South Meridian
Puyallup, WA 98371
bryced at cdb-law.com<mailto:bryced at cdb-law.com>
www.cdb-law.com<http://www.cdb-law.com/>





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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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