[WSBARP] FIRPTA Tax

[Samuel M. Meyler]

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

  

NOTICE:

 

This electronic message contains information which may be Confidential or
Privileged and constitutes an electronic communication within the meaning of
the Electronic Communications Privacy Act 18 USC 2510. The information is
intended to be for the use of the individual or entity named above.  If you
are not the intended recipient, please be aware that any disclosure,
copying, distribution or use of the contents of this information is
prohibited.  If you received this transmission in error, please notify the
sender and delete the copy you received together with any attachments.
Thank you.

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20211112/67b34ea5/attachment.html>