[WSBARP] Recording a Deed with Two Excise Tax Exemptions

[Eric Nelsen]

My best advice is don't do it as one deed! In my experience the REETA is rejected. They just don't want more than one exemption listed per deed. Logically you are perfectly correct, but bureaucratically, listing two exemptions is apparently a grave sin against Red Tape Requirements. Despite the hassle and the additional recording fee I have found that it's ultimately less expensive to use two deeds.

But I sure wish that wasn't the case and I would love to hear of any success stories where somebody successfully used two exemptions for a single deed.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Mark Anderson
Sent: Wednesday, October 26, 2022 9:58 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Recording a Deed with Two Excise Tax Exemptions

Dear All:

I have posed this question to the King County Recorder and am still waiting for an answer.  Because recording issues have been on your minds lately as a topic of discussion on this listserv, I thought I would run it by all of you.

A probate estate plans to make a distribution of a single piece of real property to the heirs.  I am aware that a distribution to the heirs as tenants-in-common would be exempt from excise tax as an inheritance under WAC 458-61A-202.

Instead of distributing the property to the heirs as individuals, however, the heirs have requested that the property ultimately be conveyed into an LLC owned by all of the heirs in the same proration as they would have otherwise taken as tenants-in-common.  I am aware that, so long as the owners have the same proportional interests in the property, conveyance from tenants-in-common into an LLC would be exempt from excise tax as a change in identity or form under WAC 458-618-211.

I am trying to do this as one transaction, i.e., one deed from the probate estate into the LLC.  How would you annotate the exemption(s) on the real estate excise tax affidavit?  Or should I just do this as two successive transactions?

Thanks in advance.

Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock St  Ste 209  PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
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