[WSBARP] REET Question

[Jennifer L White]

Does anyone know when WA implemented the real estate excise tax with the controlling interest provision?
I would think that the Q on whether that WAC exemption applies turns on whether the corporate stock sale occurred before or after there was such a “thing” as a real estate excise tax applying to controlling interest transfers.  If it wasn’t a “thing” then it should work. If it was a “thing” and they didn’t pay, then you could get audited. What’s the SOL for not paying it?

Jennifer L. White, Esq.
[cid:image001.jpg at 01D690E0.67134B00]

jen at appletreelaw.com<mailto:jen at appletreelaw.com>
PO Box 11037
Yakima, WA 98909
509.225.9813

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Bryce Dille
Sent: Tuesday, September 22, 2020 12:39 PM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] REET Question

When they got their tax statement who showed as taxpayer the parents or the corporation?

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Paul Okner
Sent: Tuesday, September 22, 2020 12:16 PM
To: WSBA Real Property Listserv <WSBARP at lists.wsbarppt.com<mailto:WSBARP at lists.wsbarppt.com>>
Subject: [WSBARP] REET Question

A REET question for all those who care to consider it:

Approximately 40 years ago, buyer purchased an operating company and underlying (Seattle) real property from his parents in a stock sale.  He ran the business, paid all the taxes, etc in the intervening time, and is now looking to sell the real property.

Title company now realizes title to the real property was not owned by the corporation all along, as assumed by buyers, but rather was still in the name of the individual parents.  Of course they've passed.  Title company now wants QCDs from a long list of descendants/heirs, and miraculously all these folks are available and willing to sign.

So the last hurdle seems to be the DOR.  Client wants to rely on WAC 458-61A-215(1) and state that this is really just clearing up title, as all parties believed, and will sign a supplement to the REETA stating, that the property was always believed to be owned by the corporation.  My question is, will DOR go for this, given the amount of time that's elapsed?

Thanks for your thoughts.

-Paul Okner
Fremont Law Group PLLC
3429 Fremont Pl. N.,  Suite 305
Seattle, WA 98103
(206) 399 - 1922

*Please note new mailing address above - Effective as of August 1, 2020*
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20200922/115f7a6a/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 10517 bytes
Desc: image001.jpg
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20200922/115f7a6a/image001.jpg>