[WSBARP] Excise Tax

Thu Apr 20 09:44:00 PDT 2023

If the gift exemption is being used, the supplemental statement is
required. If there is a significant difference between 1/2 the mortgage
balance and 1/2 the overall value of the property, I would recommend using
the gift exemption for the difference, just to reduce the risk of a DOR
audit of the REETA. Also, the amount of "consideration" may depend on who
has been making the payments - there are several options on the
supplemental statement (e.g., if the grantee has been making 100% of the
payments and will continue to do so, then there is no consideration in the
eyes of DOR).

Another consideration is that if the gift exemption is used, the grantor
may need to file a federal gift tax return.

*Spencer A. W. Stromberg*
Attorney at Law

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On Wed, Apr 19, 2023 at 7:46 PM Meyler Legal, PLLC <samuel at meylerlegal.com>
wrote:

> Mark,
>
> Piggybacking off of this, what if 50% of the balance of the mortgage plus
> cash that is being paid as consideration, is still less than 50% of the tax
> assessed value. Do you know if a supplement statement still needs to be
> provided?
>
>
>
> *Samuel M. Meyler*
>
> *Meyler Legal, PLLC*
>
> *1700 Westlake Ave. N., Ste. 200*
>
> *Seattle, WA 98109*
>
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>
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> *Email: samuel at meylerlegal.com <samuel at meylerlegal.com>*
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> On Apr 19, 2023, at 6:00 PM, Mark Anderson <marka at mbaesq.com> wrote:
>
> 
>
> How much is the one person agreeing to be paid by the other person for
> their interest in the property?  One half the balance of the mortgage?  If
> that is the only consideration and if there is any equity in the property
> then, yes, the parties should execute and provide a Supplemental Statement
> reflecting the gift.
>
>
>
>
> *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
> www.mbaesq.com
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>
> *From:* wsbarp-bounces at lists.wsbarppt.com <
> wsbarp-bounces at lists.wsbarppt.com> *On Behalf Of *Nestor Gorfinkel
> *Sent:* 04/18/2023 1:46 PM
> *To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
> *Subject:* [WSBARP] Excise Tax
>
>
>
> Unmarried couple, bad breakup and one is taking out the other from title.
>
> There will be a refinance and excise tax will be paid on ½ of the balance
> of mortgage. On REETA I just assumed we indicate partial sale and no other
> consideration. I was told that there has to be a gift exemption supplement
> for any difference in ½ the appraised value. Is that the case?
>
>
>
>
>
> Cordially,
>
>
>
> Nestor Gorfinkel, Attorney at Law
>
> Licensed in Florida & Washington State
>
> Florida Civil-Law (International) Notary
>
>
>
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