[WSBARP] excise tax exemption

[John J. Sullivan]

I’m pretty sure Rule 212 is limited to exemptions due to entity formation etc. it’s not a generic rule. It specifically excludes certain other types of transactions that are exempt from income taxation. What renders this rollover nontaxable under the IRC is not an exemption of the transaction but the exemption of the plan and trust. 

Since the 401(k) is a trust, I would try to fit the transaction into either Rule 210 or 210. Off the top of my head I can’t recall whether an IRA is a trust. 

The disconnect between federal income taxation and WA taxation, whether REET or even B&O has been exacerbated as the SCOTUS has limited the scope of ERISA preemption over the last 25 years. 

John J. Sullivan

Sent from my iPhone

> On Jul 7, 2021, at 1:19 PM, Bryce Dille <Bryce at dillelaw.com> wrote:
> 
> 
> Based on WAC 458-61A-212(1) that if the transfer does not involve the recognition of gain or loss for income tax purposes it is not subject to excise tax.. I realize this WAC refers to entity formation, liquidation, dissolution or reorganization it is not that much of a stretch to include your proposed transaction which I have done before and never questioned.
>  
> Bryce H. Dille
> Dille Law, PLLC
> 2010 Caton Way SW Ste. 101
> Olympia, WA 98502
> Office: 360-350-0270
> Cell: 253-579-5561
>  
> ** Please note that I use the dictation feature of my iPhone and that sometimes everything I say does not get properly translated**
>  
> This transmission contains confidential attorney-client communications and may not be disclosed to any person but the intended recipient(s).  If this matter is transmitted to you in error, please notify the sender immediately. 
>  
> Business Entity Creation and Management, Business, Government and Tax Law, Real Estate and Land Use, Residential, Commercial and Condominium Development Real Estate and Commercial Transactions & Closings, Including Performing Services as IRS Section 1031 Exchange Facilitator Estate Planning, including Wills and Trusts, and Probate Administration Representation Homeowners/Condominium Association Real Estate Developments Real Property Foreclosures and Forfeitures.
>  
> From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Robert R. Cole
> Sent: Wednesday, July 7, 2021 1:08 PM
> To: WSBA Probate & Trust Listserv <wsbarp at lists.wsbarppt.com>
> Subject: [WSBARP] excise tax exemption
>  
> I am preparing a deed from a corporation's  401(k) trust to rollover real estate to an IRA.  No change of beneficial ownership, but the 401(k) indicated ownership only internally (this property was long ago allocated to the beneficiary/employee, but the deed by which the 401(k) held title did not ever mention the beneficiary, although she paid the property taxes).  I see no mention of retirement plan rollovers in the WAC exemptions, but there should be one.  Thanks for letting me know what has worked.
> 
> -- 
> 
>  
> Very Truly Yours,
> Robert R. Cole
> Law Office of Cole & Gilday, P.C.
>  
> 10101 - 270th St. NW
> Stanwood, WA 98292
> (360) 629-2900 (Telephone)
> (360) 629-0220 (Fax)
>  
> This message contains confidential and privileged information that is intended only for the named recipient(s).  Unless you are the named recipient or authorized agent thereof, you are prohibited from reading, copying, distributing or otherwise disseminating such information.  If you receive this communication in error, please notify the sender immediately.
>  
> ***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***
> 
> _______________________________________________
> WSBARP mailing list
> WSBARP at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbarp
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20210707/18e20d03/attachment.html>