[WSBARP] LLC Transfer

[Craig Gourley]

Transfer from H&W to kids  would be exempt as a gift  then transfer to LLC from everyone is exempt as mere change in form.of ownership as long as the the percentage ownership in LLC matches percentage ownership in property.

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> on behalf of Julie Martiniello <julie at dimensionlaw.com>
Sent: Thursday, December 12, 2019 6:19:42 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] LLC Transfer

Why are they transferring? If they are gifting you can avoid excise tax using the gift exemption- you will need a supplemental statement as well if I remember correctly. If there is debt on the property that will need to be allocated for. You would cite the exemption on the affidavit under section 6:  https://dor.wa.gov/sites/default/files/legacy/Docs/forms/RealEstExcsTx/84-0001b.pdf
There is also the family company exemption you could use. However, that is a bit tricky because if the children ever sell, they have to pay the excise tax on the sale and then also pay the excise tax they avoided by the transfer. See https://app.leg.wa.gov/WAC/default.aspx?cite=458-61A-211

On Thu, Dec 12, 2019 at 2:54 PM Jennifer Modak <jennifer at modaklaw.com<mailto:jennifer at modaklaw.com>> wrote:

Hello All,

I got a very helpful response to my last query. Thank you.



I am pondering a transfer of real property (cabin) owned by Husband and Wife into an LLC held by Husband and Wife and their two children. I am trying to parse out how to minimize excise transfer tax, such as transferring 49% the first year, 49% the second year, and 2% the final year. Any insight would be very helpful.

Jennifer M. Modak

Attorney at Law

Law Office of Jennifer Modak, PLLC

19125 North Creek Parkway, Suite 120

Bothell, WA 98011

206-747-0477



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