[WSBARP] REET on Transfer from Corp to Sole Owner and Spouse

[Inge Fordham]

Colleagues,

A client is refinancing a property that is presently titled in the name of a corporation the client owns (100%).  The client seeks to quit claim a property from the corporation to himself and his spouse.  However, I’m not sure this can be done in a single transaction without triggering excise tax on the 50% beneficial interest being transferred to the spouse.  I realize that we can claim exemptions on the transfer from the corporation to the client (a mere change in identity) and then from the client to the client and his spouse (for purposes of creating community property).  I’m trying to save him the cost of preparing and recording two separate quit claim deeds.  Is there any way to accomplish this in one exempt transaction?  (I’m also concerned that the auditor’s office will get testy if we claim two separate exemptions).

Thank you in advance,


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Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
www.fordhamlegal.com<http://www.fordhamlegal.com>

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