[WSBARP] Excise Tax Issue

[Paul Neumiller]

Listmates, client co-owns residence with family member.  Both on mortgage and deed of trust.  In a buyout deal (with nothing in writing), client gives family member a quitclaim deed and receives $20k (representing 1/2 of the equity in the residence.)  Client paid excise tax on the received $20K.  BUT BUT BUT, family member refinanced the residence and now the County is arguing that client now owes the County about $6k more in excise taxes due to the "forgiveness of debt on the transaction."  Any thoughts on where I can start or is client hosed?  


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