[WSBARP] FIRPTA Tax
Samuel M. Meyler
samuel at meylerlegal.com
Fri Nov 12 10:14:56 PST 2021
Listmates,
Happy Friday! I'm looking for some input on the following situation.
A Swiss citizen with a green card living in Washington in 2010 and his
American wife buy a primary residence together. They decide to move to
Switzerland in 2014. They execute a quit claim deed in 2014 from husband
and wife, to wife, to create separate property, but they fail to record it
(should have hired an attorney!). They did get the assessor to put the
property tax bill into wife's name in 2014. The QCD is properly
acknowledged and there is no question that the QCD was signed and notarized
in 2014. Swiss husband allows his green card to lapse in 2015. Wife is
still a U.S. citizen and paid taxes on the rental income since that time.
In 2021 they decide to list the property and learn that they never properly
recorded the QCD. Listing goes pending. They get the recorder's office to
record the QCD. Notwithstanding the fact that the QCD was executed and
acknowledged in 2014 and is now recorded, escrow is requiring a FIRPTA
holdback.
Shouldn't escrow acknowledge that husband actually conveyed the property to
wife in 2014 despite the fact that the deed was not recorded? Any thoughts
on how to address this? Are there any exemptions that apply? All input is
appreciated.
Sam
Samuel M. Meyler
Meyler Legal, PLLC
1700 Westlake Ave. N., Ste. 200
Seattle, Washington 98109
Tel: 206.876.7770
Fax: 206.876.7771
Email: <mailto:samuel at meylerlegal.com> samuel at meylerlegal.com
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