[WSBARP] Excise Tax on QCD

[nestor at pplsweb.com]

Thank you for the response. I reviewed the statute, which of course prompted
me to dig in further. In my case, the property is unencumbered and they are
not refinancing existing debt. Brother is being added because he has good
credit and will be the principal borrower.

 

I found WAC 458-61A-215. Looks like it is exempt as long as client makes all
the payments. However, if client is not a "borrower" I am not sure how that
will be affected.

 

Nestor

 

Nestor Gorfinkel, Attorney at Law

Licensed in Washington & Florida

Florida Civil-Law (International) Notary

P Please consider the environment before printing this e-mail.

 

 

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
On Behalf Of John McCrady
Sent: Wednesday, May 9, 2018 11:27 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Excise Tax on QCD

 

See WAC 458-61A 201(4) (a) 

There is a rebuttable presumption that the transfer is a sale and not a gift
if the grantee is involved in a refinance of debt on the property within six
months of the time of the transfer.

 

I don't know whether there has been an decision construing "refinance".

 

John McCrady

Counsel

Puget Sound Title Company

5350 Orchard Street West

University Place WA 98467

253-476-5721

j.mccrady at pstitle.com <mailto:j.mccrady at pstitle.com> 

 

From: wsbarp-bounces at lists.wsbarppt.com
<mailto:wsbarp-bounces at lists.wsbarppt.com>
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of nestor at pplsweb.com
<mailto:nestor at pplsweb.com> 
Sent: Wednesday, May 09, 2018 10:33 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com
<mailto:wsbarp at lists.wsbarppt.com> >
Subject: [WSBARP] Excise Tax on QCD

 

Client has unencumbered property and wants to add brother as a gift and then
and then refinance with brother as the main borrower.  The way I see it
Excise Tax not due on the transfer. Let me know if I am wrong. 

  

I would of course have the transfer done in advance of the refinance. 

  

  

Nestor Gorfinkel, Attorney at Law 

Licensed in Washington & Florida 

Florida Civil-Law (International) Notary 

  

P Please consider the environment before printing this e-mail. 

  

  

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