[WSBARP] Excise tax of transfer to partner not on title.

[nestor at pplsweb.com]

This is more of the nominee situation at the time of purchase. I advised
them to have all the proper documentation under subsection 5, because it
will not be a matter of if, but when they are going to get that "friendly"
letter from DOR.

 

Thanks for your response.

 

 

Nestor Gorfinkel, Attorney at Law

Licensed in Washington & Florida

Florida Civil-Law (International) Notary

 

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
On Behalf Of Eric Nelsen
Sent: Thursday, November 7, 2019 10:04 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Excise tax of transfer to partner not on title.

 

I think there ain't no exemption for that. If the second person "bought in"
at a particular time, I think the question is: what was the structure of the
deal?

 

If it was a straight purchase of a title interest, then that was a
transaction that would be memorialized by deed and REET should be paid. But
many different structures might have been used.

 

If A owned the property outright and B bought an interest, that's just a
purchase by B, no exemption.

 

If A and B formed a partnership first and then A bought the property and
then B contributed later in order to equalize the financial commitment, and
the property is actually partnership property under RCW 25.05.060 and RCW
25.05.065
<https://app.leg.wa.gov/RCW/default.aspx?cite=25.05&full=true#25.05.060> ,
then really title should be in name of the partnership and you could look at
the controlling interest rules, WAC 458-61A-101
<https://apps.leg.wa.gov/wac/default.aspx?cite=458-61A-101> , to determine
if there is a possible exemption.

 

If it wasn't a partnership but A and B contributed to the purchase at the
same time but for some reason only A ended up on title, then you can
possibly justify adding B to title on grounds that A held title partly as
"nominee" for B. WAC 458-61A-214
<https://apps.leg.wa.gov/wac/default.aspx?cite=458-61A-214> . Note that
they'll need careful documentation to show that in fact B contributed money
at the time of purchase such that A was B's nominee at the time A entered
title.

 

Other possibilities...I think it just depends heavily on exact timeline of
purchase, monetary contributions, agreements between the parties. Some might
be exempt from REET, but a lot won't be.

 

Sincerely,

 

Eric

 

Eric C. Nelsen

SAYRE LAW OFFICES, PLLC

1417 31st Ave South

Seattle WA  98144-3909

phone 206-625-0092

fax 206-625-9040

 

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: Thursday, November 07, 2019 9:30 AM
To: 'WSBA Real Property Listserv'
Subject: [WSBARP] Excise tax of transfer to partner not on title.

 

I have a situation where a partner bought into the property but was never on
title. They want to add this partner and not pay excise tax (of course).
Does anyone know the WAC code for this?

 

 

Nestor Gorfinkel, Attorney at Law

Licensed in Washington & Florida

Florida Civil-Law (International) Notary

 

ATTENTION - This e-mail message and any attachment to this e-mail message
may contain confidential information that is legally privileged. If you are
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have received this e-mail in error, please notify us immediately by return
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P Please consider the environment before printing this e-mail.

 

 

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