[WSBARP] Excise Tax Question

[Catherine Clark]

Thanks Eric.  I appreciate that.

Catherine C. Clark
Law Office of Catherine C. Clark PLLC
2200 Sixth Avenue, Suite 1250
Seattle, WA 98121
Phone: (206) 838-2528
Direct Dial: (206) 274-7941
Cell: (206) 409-8938
Fax: (206) 374-3003
Email: cat at loccc.com

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________________________________
From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> on behalf of Eric Nelsen <Eric at sayrelawoffices.com>
Sent: Monday, December 16, 2019 2:11:39 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Excise Tax Question


It is not exempt—it is never exempt solely on basis of a property division between unmarried partners in a CIR. REET is almost always a problem when trying to allocate real estate in a non-marital breakup.



Generally I have to try to find some other exemption. Might be able to do it as a friendly partition action. If PC has been living in this house and paying taxes for 20+ years--and paying a purchase mortgage perhaps?—PC might be able to credibly asset that whatever interest the former partner might have had, has been consumed by PC's expenses; also, former partner "abandoned" their interest except as to the fraction of equity that partner might have owned at the time they moved out.



A close read of Cummings v. Anderson 94 Wn.2d 135 (1980) might give you some ideas; it appear to hold that initial percentage of ownership shifts over time, if one party in a CIR abandons the property and the other continues to reside there and pay mortgage etc. That doesn't extinguish the partner's equity interest calculated as of date of abandonment; but at that point, a tenant-in-common's right of accounting for expenses, which is allowed in a partition action, might swallow up all remaining equity interest of the partner.



The easiest route might just be a plain gift under WAC 458-61A-201. Partition is WAC 458-61A-204(2).



Sincerely,



Eric



Eric C. Nelsen

Sayre Law Offices, PLLC

1417 31st Ave South

Seattle WA 98144-3909

206-625-0092

eric at sayrelawoffices.com



From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Catherine Clark
Sent: Monday, December 16, 2019 1:17 PM
To: WSBA Real Property Listserve <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Excise Tax Question



All:



PC has called with a real estate excise tax question.  PC was involved in a committed intimate relationship at least 25 years ago.  In the CIR, PC and former partner purchased a house together.  As these things go, the relationship ended.  The parties agreed that a new house would be purchased for former partner and one was.  The parties also agreed that said partner would sign a quit claim deed.  And as these things go, 20 some years later that hasn’t happened.



They would like to clean this up and record a quit claim deed.  On excise tax, do you think it is due or do you think that it is an exempt under WAC 458-61A-215, clearing or exiting title, and additions to title.   The transfer incident to a dissolution of marriage or domestic partnership would not seem to apply as no action was filed and thus there is no order or decree.



All thoughts appreciated.



Thank you.



Catherine C. Clark
Law Office of Catherine C. Clark PLLC
2200 Sixth Avenue, Suite 1250
Seattle, WA 98121
Phone: (206) 838-2528
Direct Dial: (206) 274-7941
Cell: (206) 409-8938
Fax: (206) 374-3003
Email: cat at loccc.com<mailto:cat at loccc.com>

NOTICE: The information contained in this electronic information transmission is confidential. If you are not the intended recipient, or the employee or agent responsible for delivering it to the intended recipient, you are hereby notified that any use, dissemination, distribution or copying of this communication is prohibited. If you received this communication in error, please immediately notify the sender by telephone at (206) 838-2528. Thank you.


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