[WSBARP] Recording a Deed with Two Excise Tax Exemptions

[Jeanne Dawes]

I believe there is a special form to use when an LLC conveys 50% or more of its membership interest.  There will not be a deed to record, and I believe the inheritance exemption will work on the form the LLC is to use to notify DOR of the conveyance.  So on the deed from the estate to the estate created LLC it will just be one exemption the mere change of identity exemption.

Jeanne

Jeanne J. Dawes
Attorney at Law
Gore & Grewe, P.S.
103 E. Indiana Avenue, Suite A
Spokane, WA 99207-2317
Voice:  509-326-7500
Fax:      509-326-7503
jjdawes at goregrewe.com<mailto:jjdawes at goregrewe.com>

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From: wsbarp-bounces at lists.wsbarppt.com On Behalf Of michael westseattleattorney.com
Sent: Wednesday, October 26, 2022 10:31 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Recording a Deed with Two Excise Tax Exemptions

In King, I had a REETA rejected with two exemptions ☹

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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> on behalf of Jeanne Dawes <jjdawes at goregrewe.com<mailto:jjdawes at goregrewe.com>>
Sent: Wednesday, October 26, 2022 10:18 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] Recording a Deed with Two Excise Tax Exemptions


I believe you can have the estate establish the LLC, then distribute the property to the LLC using the mere change of identity exemption, and then distribute membership interests to the heirs using the inheritance exemption.



Jeanne



Jeanne J. Dawes

Attorney at Law

Gore & Grewe, P.S.

103 E. Indiana Avenue, Suite A

Spokane, WA 99207-2317

Voice:  509-326-7500

Fax:      509-326-7503

jjdawes at goregrewe.com<mailto:jjdawes at goregrewe.com>



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From: wsbarp-bounces at lists.wsbarppt.com<mailto: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<mailto: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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